Stay Away From Extended Warranties, you'll end up paying too much.
If you purchase electronics at your local big box store, you will always be offered an extended warranty, especially on items like a computer or video camera. Sure, the benefits of having an extended warranty are many, but it comes at a price. Sometimes these warranties can cost up to ¼ of the price of the item that you are buying. Most of the money charged for the warranty actually goes to pay commission to the salesperson who sold the warranty to you. Most of us like to get new electronics every few years anyway, so an extended warranty may never be used. Check your home contents insurance, the equipment may already be covered anyway – or covered for a small additional cost that’s far less than what an extended warranty would cost.
