Originally Posted by
mrmichaelblack
It really depends on the warranty included in the product, and how much the extended warranty is.
Imagine you bought a plasma tv about 3 years ago, for about $800-$1000, and purchased the extended warranty for about 360$? The comes with a one year warranty already from the manufacturer, which covers everything that the store warranty covers. Your first $120 of the warranty effectively goes down the drain.
Skip ahead to year 2 , your TV breaks now, and it is only covered by the store warranty. The same size, but newer model tv now costs about $450 to $600. So you are saving about $90 to $240 by getting the warranty, but you still get back your now outdated tv.
Year 3, your TV breaks, now the same size, but much newer model tv costs considerably close to what you had originally paid for the warranty. From this point forward it really wasn't worth paying for the warranty.
So to sum it up, their extended warranties are really only worth their while in the short time from when the manufacturer warranty is up, to when the price drops to that which you have paid for the warranty. In this hypothetical case, only one year for $360.
Just do your reading and research, find out how long the manufacturer warranty is, and look to see how much the price of similar products 3 years ago. Compare how much the prices have dropped and assume that it is going to continue to drop at a steady rate or faster.