CROMWELL — One question consumers are often asked when paying for certain purchases is whether they would like to buy a “protection plan,” which can mean an extended warranty, or more accurately, a service contract, according to Connecticut Better Business Bureau. Is the extra cost worth it? The answer is not so simple.
The Federal Trade Commission (FTC) advises consumers to understand exactly that they will get for their money if they buy extended coverage. The FTC says rather than extending a manufacturer’s product warranty, most production protection plans are service contracts, which are not the same as the manufacturer’s warranty, and they typically contain wide-ranging restrictions and exclusions.
Some consumers feel a service contract is worth the peace of mind once a manufacturer’s warranty expires. Others don’t see the point in paying extra money to buy a 5 year protection service for a $65 printer.
Alternatives include insurance policies for merchandise that is easily lost, stolen or broken, such as a smart phone, and some credit cards extend manufacturers’ original warranties as a perk.
Unfortunately, most cashiers don’t have the time and may not have the information you need about the extended protection policies they sell. Better Business Bureau encourages you to take home a copy of the paperwork and understand the terms, conditions, exclusions and limitations of the extra coverage.
Weigh the benefits – What is the expected average lifespan of the merchandise? How reliable is the type of product?
Understand the terms and conditions – If you buy extra protection, make certain you know what is covered and what is not, such as labor, parts and service calls.
Get details about customer service – How long do you have to wait for repairs? Do you have to pay for shipping? Is the repair service contracted out to a local service?
Research sellers before you buy with Better Business Bureau or by calling 860-740-4500.
It is always best to avoid making a snap decision to sign a contract without understanding what you are paying for, and this is especially important as we head into the busiest retail season of the year.
