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Real Magic

The Christmas season is full of magical promises. Flying reindeer with free gifts and peace on Earth. Service contracts are promises of a similar nature: magically returning damaged products back to working condition with no extra cost. What can be more merry than that?

 

However, some of the most common concerns we hear from customers are about the cost-effectiveness of warranties. Consumers worry that the need for repairs is low or that if a repair is needed the provider won’t fulfill their promise.

 

According to a recent survey, 67 percent of shoppers are also concerned that manufacturer warranties alone do not provide enough protection for their purchases. It’s a concept common in finance, business and insurance that paying a little extra now will save in the long run and the majority of consumers agree: paying for an extended warranty is investing for the future.

 

When providers honor their promises, a service contract is a gift: a second gift to any Holiday present. They have a real and lasting effect on the value of the products we buy.

 

But instead of telling you we’re in the business of providing good service contracts that will save you money, we’ll just show you. Here’s a list of products with the average cost of extended warranties and their most common repairs placed side-by-side.

 

 

Laptop: $650                                Average Extended Warranty: $60 – $130

Component                                  Average Repair Cost

Mother Board                                         $400

LCD Screen                                             $325

Hard Drive                                               $200

Optical Drive                                           $175      

 

LCD TV (37″ or larger): $1,500     Average Extended Warranty: $100 – $300

Component                                  Average Repair Cost

Panel                                                        $1,100

Control Box                                             $475

Inverter and Main Board                        $330

Power Supply                                          $250

 

Refrigerator: $1,200                     Average Extended Warranty: $120 – $200

Component                                  Average Repair Cost

Compressor                                             $500

Condenser                                               $475

Evaporator                                               $380

Defrost Heater                                         $220

 

Tablet: $425                                 Average Extended Warranty: $40 – $120

Component                                  Average Repair Cost

Main Board                                              $300

Digitizer                                                   $170

LCD                                                          $200