We recently covered 'extended warranties' for Today Show (Extended Warranties - Deal or No Deal?) ... the takeaway from the segment more or less being – while Americans spend about $15 billion on extended-service warranties annually – they can be a gamble. You're betting your new gadget will break within the next three years & that the cost of fixing it will be higher than the price of the warranty. The seller of the warranty is betting it won't. While the odds vary, you beat the house if you pay $200 and run up against an $800 repair. They win if nothing goes wrong, pocketing $200 of almost pure profit.


The newest trend in extended warranty contracts are all in one plans, like those offered by previously blogged about GreenUmbrella.com and discounted plans available via SquareTrade.com. Each is an alternative to the often pricey warranties pushed at the checkout counter at most electronics and big box stores. SquareTrade warranties cost as much as 40% less than traditional store bought plans and offer repair or full cash reimbursement, guaranteed within 5 days.

SquareTrade prices, terms, etc.
SquareTrade charges 12 percent of the cost of a product priced less than $1,000, 10 percent of the cost of a product priced between $1,000 and $2,000, and 8 percent of the cost of a product priced at $2,000 or higher. For major appliances, prices range between 4 percent and 8 percent of the product's price.


The contracts carry standard three-year terms that run concurrently with the manufacturer's warranty. No deductible is charged for claims. They do not cover loss, theft or data recovery, although consumers can purchase additional coverage for accidental damage or an extra year of protection for TVs.

SquareTrade encourages potential customers to research extended warranty purchases, approaching them the same way educated consumers shop for consumer electronics. To date, SquareTrade has sold nearly one million consumer electronic warranties and reviews of the service on sites like Epinions and NexTag are impressive.