Extended Warranties: Worth the Cost?

Should you buy an extended warranty for your PC? James Dodez of Middletown, Rhode Island, doesn't think so. Dodez got a brochure for a General Electric extended warranty when he got his CyberMax PC, but he wasn't happy with the service he bought. He laments, "GE promises fast, convenient computer service, but dealing with GE isn't convenient and their idea of fast is measured in months." Chip Keeling of GE responds that if a technician comes on-site but can't fix the PC, average repair time is five days. He also says the technician will attempt some troubleshooting on-site.

While warranty terms vary, an extension often buys less than you might expect. At Quantex, for example, extended-warranty techs work for Philips Magnavox. Under the standard three-year warranty, a Quantex tech will troubleshoot problems on the phone and suggest replacement parts. With the extension, a Philips tech will install the part on-site; if the fix doesn't work, you're back to the phones.

Dell, on the other hand, provides its own extended service and trains its on-site techs. There's no third party involved.

In any case, an extension shouldn't be your first choice when buying a new PC. Instead, buy a system with a three-year original warranty (a common option) that includes one year of on-site service. After that year, if you're scared to do your own repairs--and if you plan to keep the computer for another few years--buy yourself additional on-site service with an extended warranty.

If you purchase your PC with a credit card, check to see if the issuing bank will double the manufacturer's guarantee for no charge.

Regardless of your choice, however, consider whether your money would be best spent on a system that has better expected reliability (see our November 1998 report, "PC Reliability and Service: Who Can You Trust?" ).