Whether you're buying a new computer, digital camera, or printer it's unlikely you'll get out of the store without the salesperson trying to persuade you to buy an extended warranty on your purchase. Such warranties usually extend the time frame for the existing warranty and may add some additional protection -- for a fee, of course. The fee is usually about 10% of the original purchase price.

Whether or not to get the additional warranty can be a tough choice. Most of the time, if a product is going to break down, it does so within the first few months of use and is covered by the manufacturer's warranty. So, any extended warranty could be a waste of money. But, if something does break down outside the warranty period and you don't have the extended coverage, the cost of getting it repaired may far exceed any additional warranty cost.

I bought an expensive multifunction printer several years ago, for example, and chose not to get the extended warranty. The printer failed one month after the manufacturer's warranty had expired. I spent about $200 dollars to repair the printer, used it for another month and then a different part broke down. I wound up throwing that printer out and replacing it with a multifunction printer from another manufacturer. I've purchased a number of printers since then (we've added printers as we've added staff), and all of those have lasted for several years - most get fairly heavy-duty use, too. Had I purchased extended warranties on those, I'd have thrown away my money.

I did purchase an extended warranty on one of the computer systems in our office, though, and I wound up using warranty when the flat panel monitor that came with the system died after a year and a half. There was one little problem, though. The company I had purchased the system from had to send the monitor away for repair. They said it would take two weeks to either get it back, or get a replacement. So, I wound up buying another monitor so the computer could be used while the monitor was being repaired.

About the only times I've found the extended warranties have been worthwhile on electronics products have been when I've purchased notebook computers. I travel a lot with mine, so unlike a desktop tower that stays pretty much in one place, my notebook computers get moved and bumped around a lot. Two of them have failed and had to have major repairs - repairs that were covered, thankfully, by the extended warranties I had purchased. In each case, the covered repairs let me put off buying a replacement until the computer became obsolete.

For any product, whether or not you'll benefit from the extended warranty is a gamble. It's a gamble that is most often won by the companies that offer the extended warranties. They make money because most people never need the services provided under the warranty. If the reverse were true, no one would be offering extended warranties.

So, when does it pay to take the warranty, and when is it best to skip it? That's going to be pretty much a personal decision. My approach is usually to buy the extended warranty if a product is expensive to buy, is something I won't want to replace for several years, would be expensive to be repaired and is used a lot. If it doesn't meet all those criteria, I usually say no. Your approach may well be different. But the key thing is to make up your mind what you'll do before you ever talk to a salesperson. That way, if you don't want the extended warranty, you'll be less likely to be pressured into buying it.

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