An extended warranty is an additional form of insurance for your TV that provides coverage beyond the manufacturer’s standard warranty. It often includes longer warranty periods, comprehensive protection for any repairs, in-home service, and sometimes accidental damage protection. However, accidental damage coverage depends on the specific terms and conditions offered by the manufacturer or retailer where you purchased your TV.
Is an Extended Warranty Worth the Cost?
An extended warranty can be a smart choice, particularly for high-end TVs. Even for budget TVs manufactured by OEMs under various brand names, it may make sense, as such TVs often become difficult to repair after a few years due to a lack of replacement components. However, for mid-range TVs costing $500 or more, it’s worth questioning whether an extended warranty is a wise investment.
From my experience repairing electronics, most issues occur within the first three months of use, and these are usually covered by the manufacturer’s warranty.
To assess the value of an extended warranty, consider its cost. Typically, a 2- to 3-year extended warranty is about 10% of the TV’s price, while a longer 4- to 5-year plan costs around 12.5% of the price. Statistically, the warranty payouts for one person are covered by the premiums paid by 10 to 20 other buyers. This means that only a small percentage of buyers—roughly 1 in 20 or even 1 in 50—will benefit from purchasing an extended warranty. For the majority, it’s a gamble that won’t pay off.
Final Thoughts
For most buyers, an extended warranty might not be a cost-effective choice, but it can provide peace of mind for others. Personally, I avoid extended warranties and stick to purchasing TVs from reputable brands. However, if I were buying a very inexpensive TV, I’d likely consider an extended warranty, as it’s relatively affordable and could be worth it given the minimal investment. Ultimately, the decision depends on your budget, the TV’s value, and your tolerance for risk.
