Dealing with Extended Warranty Vendors?

edg176 asks: "I am wondering about other people's experiences with getting Extended Warranty service. I bought a laptop at Microcenter. Got the top of the line extended warranty. Laptop died. I sent it in for service, and the outside repair place, MicroMedic, claims they can't fix it, and the actual warranty administrator is separate from the repair place -- way out in Florida! My warranty says I can get a full refund of my purchase price if the warranty people can't find me an equivalent laptop. They can't, because Microcenter no longer carries the sharp ultralight laptops. Dealing with warranty administrator people, Warrantech has been a nightmare. They won't let me speak to a manager and they keep jerking me around. So far, I've gotten them to agree to give me 1200 bucks store credit, which is still 500 bucks shy of the purchase price. Is it worth fighting them for the last 500 bucks? Does anyone have success stories or tips for this situation? Should I just take the 1200 and be happy I got that much?" "They claim that a 1200 dollar, 4.5 lb laptop is the same as my old 2.5 lb model. The dude on the phone actually claimed that low weight was not a significant feature in a laptop. Right now I have to say I would never do business with these guys again, as they have been relentlessly condescending and obstructionist."

Comments

three words

[j0nb0y]

small claims court. You paid extra for a service for your laptop, and now when you try to use that service, they are refusing to give you the service you paid for. Extended warranty services are a scam, and going to court is the only chance you have of getting what you paid for.

Re:three words

[LouCifer]

I agree. I'd add that I'd call back and ask to speak to a manager again. When they refuse, ask for their info, then ask for the legal department, etc. If the OP's state is one that allows for single-party phone recording (that is, allows him to record the conversation without the other party's knowledge or consent) do so as possible evidence for use in court.

Then, file suit in small claims. When they fail to show up, I believe you get an automatic judgement in your favor. If they show up, use the tape as evidence.

I'd pull Microcenter into the lawsuit as well, since they're the ones that used these bastards as their warranty people in the first place.

Best Buy

[dmayle]

As much as extended warranties are usually a ripoff, there are certain things I go along for just because I don't want to deal with suddenly not having them. PDA's are like that. I want a replacement immediately if I've got a problem with my PDA.

That being said, Best Buy has been very good to my friends and me with regards to warranty service. I had a friend with a similar issue to yours, and she was given a brand new laptop two years after hers kept going in for repais on the same problem. (The CD drive kept dying on a Toshiba laptop)

Lesson

[duffbeer703]

Don't by an extended warranty from a retailer. Ever.

When I worked at a CompUSA in college several years ago, Warrantech warranties were sold at a 75% margin, which translates into a major ripoff.

If you feel that you need an extended warranty, buy one directly from the manufacturer. I don't know about Sharp, but Toshiba and IBM offer comprehensive service plans that include 24hr turnaround service for about half of what a third party warranty costs.

Economic Lesson

[4of12]

Re: insurance

For things like car collision insurance, product warranties, etc., if it is within your means it is always less expensive to self-insure for loss and damages.

I read once where those lucrative extended warranties that get hawked at consumer electronics stores, the ones that bring in great commission to the sales person, to the store and to the insurer, typically have to pay out about US$1 in claim settlements for every US$11 that is collected. I'm not even sure if the salesperson commission or store commission is included in that figure. Either way, it should tell you something about the risks and probabilities that are involved.

Exhibit A: about 3 years ago my S.O. wanted to pay $4/month for insurance on our cell phone and when she brought it in to be replaced about 2 years later because the antenna had predictably gotten bent, wouldn't stay extended, etc. (insert joke) she was informed that that particular malady was not covered. So we'd paid about $100 for peace of mind that was a delusion.

Exhibit B: When I recently purchased an expensive LCD flat screen TV and I reluctantly agreed to look into the extended warranty because of the infamous "dead pixel" issue, I asked the store for a clear statement of exactly what the extended warranty covered since I'd heard of disreputable places that would exempt dead pixels in the outer third of the screen from coverage, up to 10-12 pixels, etc. Despite their enthusiasm for selling the extended warranty, they never did get me a copy of the policy, we didn't get the extended warranty, saved $1000, and been happy as clams with the TV.