Are product protection plans worth it?

[smackababy]

It really depends on the product for me. For something like a TV or game console, I have no reason to believe anything short of a manufacturer defect will cause a problem. I don't move these around and usage is pretty much what is expected.

If it is a expensive power tool I plan on using extensively and the protection plan is cheap, why not.

 

[gothamhunter]

"Is this item going to end up breaking on me?"
"Well, no, it's a good product."
"Then why are you trying to sell me a protection plan/insurance?"
"In case it breaks on you or something goes wrong with it."
"So you're selling me an item that you think will break on me? If that's the case, I don't want it."
"No we dont think that."
"Then I don't need a protection plan."
"Well if it does break..."

And so on.

Personally, I don't buy them. I have purchased 2 ever, and both were for used video game consoles that had a $10 Squaretrade 2 year warranty offer.

 

[MustISO]

I don't typically get them. I keep my cars for > 10 years so if they will give me a discount on the warranty I'll get it. I've rarely had anything break outside of the warranty and if it does it's typically cheap to replace. My big gripe with most warranties is you need to pay to ship the item back which can get expensive for some things. It's usually just time to buy a new one.

 

[Zstream]

On a car that I plan to keep beyond it's factory warranty....definitely. No so much on anything else. I normally buy cars that are a couple years old and grab a 100k warranty with part of the money I saved, compared to buying new.

Have you had to take it back to the dealer for a repair? I have a 100k warranty as well but I heard it can be a pain in the arse to take in for repair.

 

[Riverhound777]

I don't usually get protection plans or extended warranties, but I did on my last car. The stock warranty was only 3yr/36k miles. I shopped around different dealers online and found one that had a good deal and then I found 20% off, so I ended up getting a 7yr/100k warranty for like $1100 or something. I haven't needed it yet after two years, but come year 4 or 5, I'll likely be glad I got it.

 

[Jumpem]

I get them on vehicles and televisions.

 

[SteveGrabowski]

it's annoying too how they offer protection plans on so much shit now. even when i bought blurays from best buy they ask if you want protection plans on them. like let me just buy an item and gtfo, no need to try and upsell me on everything.

Haha, I remember them trying to sell me a protection plan on a $10 DVD a few years ago.

Cashier: Do you want to buy a protection plan? It's one dollar.
Me: Who buys an extended warranty on a DVD?
Cashier: It's only a dollar.
Me: OK, can you pay for it then for me?

 

[Blanky]

Only poor people buy insurance on cheap disposable items. OP, are you poor?

This is generally true, there are some exceptions to my standard.

I was offered a protection plan on a $20 item I bought from Dicks sporting goods the other day. I told her of course not. Who fvcking does that?

 

[pontifex]

depends on the item. a $50 item, no. especially not if the cost of the plan is high.

A $500 item, probably (as long as the plan cost isn't too high and depends on for how long). I'm poor.

 

[steppinthrax]

This is generally true, there are some exceptions to my standard.

I was offered a protection plan on a $20 item I bought from Dicks sporting goods the other day. I told her of course not. Who fvcking does that?

The aspect of a product protection plan can be lucritave.

In most situation the PPP is priced according to the total cost of the item v.s. the probability of that particular items damage rate. Items like cell phones tend to change so often and can dropped, cracked etc... so much that even careful people break them. In which case you're getting a replacement with a new item, or getting your money back. Which you put towards the newer model.

I don't get the PPP on everything, but on certain items that I know have a high break rate.

 

[KeithP]

The only time I think a protection plan might be worth purchasing is when having the plan will help sell the product in question at a later date. I have purchased plans with resale in mind several times.

Otherwise, it is simple math. Imagine if you could, all the opportunities you might have had to purchase such plans and what the total cost would be.

Then imagine the number of times you would have used such plans to replace/repair products. How much would it have been out of pocket?

Guess which number is always bigger?

-KeithP

 

[NutBucket]

Think of it this way; if they weren't going to turn a profit they wouldn't be so eager to sell it to you.

However, that doesn't mean I don't buy them. I bought them for our last two cars and the washer/dryer.

 

[JM Aggie08]

The only thing I've purchased protection plans for are my fridge and washer/dryer.

 

[Pulsar]

The aspect of a product protection plan can be lucritave.

In most situation the PPP is priced according to the total cost of the item v.s. the probability of that particular items damage rate. Items like cell phones tend to change so often and can dropped, cracked etc... so much that even careful people break them. In which case you're getting a replacement with a new item, or getting your money back. Which you put towards the newer model.

I don't get the PPP on everything, but on certain items that I know have a high break rate.

Yes and no. Most PPP through the providers also come with a deductible. After 2 years with her Galaxy S4, my wife's screen cracked and was non-reparable. She'd been paying the monthly fee ($6 or $7 dollars a month). So the price of the plan for the phone was $168, and then there would be a $150 deductible on top of that. $368 total, for a product that cost us out of pocket........ zero dollars. Plus, every two years you can sign a new contract and get a newer free phone.

So, as you said, sometimes it's worth it, sometimes it isn't. I never wanted the plan on her phone, but she was terrified that she was going to damage it in some way. I don't have it on mine.

 

[Brainonska511]

I never buy them - self insurance ftw. The only time in recent memory where I needed purchase protection was my Nexus 4. I cracked the back glass somehow (I don't recall dropping it) - but it was within 90 days of purchase, so I just filed a claim with Amex (free 90 day accidental damage coverage). I was credited the entire purchase cost and got to keep the phone, which I still use today.

 

[GagHalfrunt]

Think of it this way; if they weren't going to turn a profit they wouldn't be so eager to sell it to you.

However, that doesn't mean I don't buy them. I bought them for our last two cars and the washer/dryer.

You should have stopped after the first sentence.


Yes, they're a giant profit maker for the seller which means they're a stupid idea for the buyer. It's that simple. If one party wins the other loses.

 

[nurturedhate]

The only thing I buy protection plan on are gaming headsets. They always break regardless of what I buy. Paying $100 for a headset and then another $10 for a total of 3 years of warranty that only requires me to bring it back to the store and swap it out is nice and I feel that is worth the cost. Everything else is pretty much a no go.

 

[purbeast0]

You should have stopped after the first sentence.





Yes, they're a giant profit maker for the seller which means they're a stupid idea for the buyer. It's that simple. If one party wins the other loses.

That's stupid logic because anything you buy is being sold for profit.

 

[maddogchen]

only buy insurance on things that you feel are hard to replace, financially difficult for you to replace, or legally you need to buy insurance.

A cell phone or ipod plan is not worth it.

 

[smackababy]

You should have stopped after the first sentence.


Yes, they're a giant profit maker for the seller which means they're a stupid idea for the buyer. It's that simple. If one party wins the other loses.

So, car insurance is a bad idea? How about health insurance? You're paying a company in case some shit happens. In the event that shit don't happen, they make 100% profit. And, since that shit don't happen the majority of the time, they can afford to pay out when that shit does happen.

Sure, you don't need to have health insurance, but have fun paying $100k for that heart transplant you got.

 

[GagHalfrunt]

That's stupid logic because anything you buy is being sold for profit.

Wow. Talk about stupid logic look in the mirror.


Yes. Everything is being sold for a profit. Everything is, even product protection plans. If they're making a profit that means the average customer is paying more for the protection than the average customer is getting in return. Which part of that simple balance is so complicated that it escapes your understanding?

 

[IronWing]

When we bought a range from Sears we got the best salesman ever. "They all crap now, wan'a buy the warranty?" It worked, we did, it broke, and the warranty covered it.

 

[purbeast0]

Wow. Talk about stupid logic look in the mirror.





Yes. Everything is being sold for a profit. Everything is, even product protection plans. If they're making a profit that means the average customer is paying more for the protection than the average customer is getting in return. Which part of that simple balance is so complicated that it escapes your understanding?

You can't put a value on "what they are getting in return" because it's different to every person. Even if people never use it, the piece of mind they could easily swap an item may be worth the $20 or whatever they pay up front.

 

[smackababy]

Wow. Talk about stupid logic look in the mirror.


Yes. Everything is being sold for a profit. Everything is, even product protection plans. If they're making a profit that means the average customer is paying more for the protection than the average customer is getting in return. Which part of that simple balance is so complicated that it escapes your understanding?

The entire protection plan is to mitigate the risk, for a price. When you buy an item, there is a risk it will fail. A protection plan extends the period upon which a failure is acceptable. Does that always happen? No.


I look at it this way: does my pattern of usage for said product increase the risk of this item breaking by an amount enough to justify the protection plan? On certain products, yes. I have little expectation to break my skillsaw using it 3 or 4 times a year at most, so the extra money isn't worth it.

 

[maddogchen]

When we bought a range from Sears we got the best salesman ever. "They all crap now, wan'a buy the warranty?" It worked, we did, it broke, and the warranty covered it.

must have been....he told you they break all the time and still got you to buy it...i'm selling you a shit product and you're still gonna buy it cuz I'm just that good...on top of that you're going to help me get paid more by purchasing this warranty where I get 20+% commission