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Extended warranty for a Plasma HDTV

I have read the pros and cons of paying extra for an extended warranty and have concluded the peace of mind of having one is worth it IF the cost and coverage period are reasonable. I also know the plans offered by Circuit City, Best Buy, etc. are a huge profit item for them. So I figure, if I could buy a plan directly from one of the insurance companies that actually furnishes the service call or product replacement for these retailers, I could avoid the extra markup tacked on by them. Does anyone know the names & contact info for any protection plan providers that would be independent of where I end up buying my new HDTV?

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Profit margin explained. . .

In reply to: Extended warranty for a Plasma HDTV

If they never have to provide service, the money is all profit. All of the providers, although some mark up more than others. I would prefer buying the warranty from the manufacturer.

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Since manufacturers warranty is much more valuable than the

In reply to: Extended warranty for a Plasma HDTV

third party insurance providers, a major factor in shopping for the set would be determining what brand offers the extended warranty from the maker.

Besides the idea that those policies are hard sold due to commission for the salesperson & generally fat profit margin for the selling company, the policies MUST be thoroughly read through, phrase by phrase & clause by clause with actual understanding. It is not uncommon for self-serving opt out clauses which make the policy worthless.

Past threads here have demonstrated clauses that if the repair problem is significant, the issuer may just refund the premium & avoid all liability to fix the darn thing.

That said, the Consumer Reports magazine article had repair frequency stats that showed both plasma & LCD with very low repair incidence, but rear projection with like three times the repair likelihood. The message, as intrepreted by me, was that the first two don't need extra warranty, but I would consider rear projection as mandatory for all the protection I could get. Just a factor to be part of the selection decision.

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Extended warranties are just like any insurance.....

In reply to: Since manufacturers warranty is much more valuable than the

Being in a non-consumer electronic profession, but still dealing with products with extended warranties/service contract, I tell my customers this...'service contracts are like any other kind of insurance-you hope you never have to use them, but the piece of mind of having the protection is sometimes worth the cost'.
Extended warranty/service contract/insurance companies all have the same thing in common-their profit and loss margins are based on premiums taken in and claims paid out.

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In reply to: Extended warranties are just like any insurance.....

I WAS in the CE biz. Yes warranties are profitable, few if any retailers are self insured. ( the warranty company is a separate biz, not owned by them)
The sales person does not make as much from selling them as you would think. All insurance is very profitable, unless/until they have to pay a claim. No one wants the warranty til they need it. BTW the old "if it's good out of the box" theory could not be less true. I saw PLENTY of TV's that went 6 months to 18 months then died. Very few were DOA within 60 days.

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