When you buy a new computer or appliance, the salesperson may try to talk you into buying a service contract or an extended warranty. The costs of service contracts can range from $50 to $500, depending on the length of the contract and what it covers. Sometimes, the extra protection is unnecessary or doesn’t offer enough coverage to justify the cost.
Before you buy a service contract, consider the following:
When deciding whether or not to purchase a service contract, consider these tips:
- Read the manufacturer’s warranty and the service contract carefully. If they cover many of the same items for the same period of time, you probably don’t need the service contract. Service contracts will typically run concurrently with the manufacturer's warranty.
- If the service contract doesn’t say that an item is covered, assume that it is not.
- Most service contracts cover only repairs, not replacement of an item.
- Watch out for high-pressure sales tactics by salespeople who push service contracts. Ask how much commission they make off the sale of service contracts.
- Check out repair statistics on the item you are buying. Consumer magazines or websites can be good sources of information about how reliable certain brands may be and how often certain items need repairs.
We Can Help
If you have a complaint about a service contract, contact us for help or call toll free within North Carolina at 1-877-5-NO-SCAM.