A battle is taking shape in the home PC market. This time the lines are being drawn around extended service programs. You know the one I’m talking about. At the big box electronics stores, it’s the line you get fed at the checkout, “For only $34.76, you can add one full year to this product’s warranty.”
Retailers and PC manufacturer seem to be upping the ante on extended service plan. In fact, I was a little dubious about these plans before I dug deeper for this article. I was prepared to tell you that, while these plans to provide good coverage, they can add significant expense to a purchase. It became clear to me that the first part of that statement was basically true, but the latter half is not necessarily so.
Coverage Options
Most PCs come with some basic form of warranty when you purchase them, typically in the form of a one-year limited warranty. The warranty covers your PC in the event that a part of the system fails. For example, if a monitor or hard drive physically fails, the warranty provides for replacement In the event of a problem, there are two basic ways that parts are replaced. “On-site” refers to replacement where a part is delivered to you then the defective part is returned. “Off-site” refers to either returning a PC to a retailer fore replacement, or to first shipping a defective part before receiving a replacement. The “on-site” repairs tend to be a little more convenient since they can be done at your home.
An extended warranty may add one, two or even three years to the initial warranty period. The service plan could also include a combination of on- and off-site repair.
My recommendation is to look for three years of coverage with as much “on-site” replacement as you can find.
Cost of Coverage
As I said, this type of coverage used to always add significantly to the cost of a PC. But, I was surprised by what I found. Direct PC retailers, like Dell and Gateway, provide extended service plans that you can add on to your purchase. Dell wants about $169 for a three-year plan; Gateway starts in the $139 range. I did find a couple special promotions at each site where they were throwing in the cost of the extended warranty plan, so it pays to look around on-line. Many of these plans were also fixed-price plans; the cost was the same regardless of the cost of the PC.
I then turned my attention to other PC manufacturers like Compaq and Sony. I found similar deals for each of them on their Web sites. I also found that you could purchase plans for PCs you buy at a retailer, as well. In fact, Compaq had three-year coverage for about $100.
Finally, you have the choice of a retailer’s extended service plans. CompUSA, for example, has a multi-tiered offering that lets you add training classes and software support options. Their pricing is based on the retail price of the PC you purchase. These plans tend to run anywhere from 25% to 30% or more of price of the PC. If you buy a PC through a retailer, be sure to check both the retailer and manufacturer for extended warranty plans.
Keep in mind as you look at individual warranty programs that these only cover failure of the hardware that makes up your PC. It’s important to read all the extended warranty information thoroughly before you decide to choose one. Finally, make sure you understand how the provider defines and fulfills on-site and off-site repairs, as well as any hidden costs for which you may be responsible.
