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Hello, I am just about to pull the trigger on a panasonic 50inch plasma. (not sure if its going to be the commercial or consumer) And was just curious on your thoughts on an extended waranty. How many hae had troubles with their plasmas after one year? Thanks
 

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The coverage above would not be enough.The RMT42500 is only good on models of Televisions priced $2500 and below. I highly dought a 50" plasma is below this price any where. A person would want to look at the Warrantech RMT45000 for televisions $5000 and below.


If a person buys the right warranty and doesn't buy from a retail store, they are worth the money.
 

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Buy with a premium credit card, and they will usuallly extend the mfr's warranty for a second year (read your CardMembers' agreement.)


IMO, two years' coverage is enough for a plasma TV, and I would hesitate to spend $$$ for a longer warranty.


Some of these warranties can be bought any time prior to the expiration of the Mfr's warranty (usually 1 year) and this gives you time to consider the issue at greater length.
 

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Warrantees in my opinion is the wrong term, nothing is warranted since you have to pay for it. Really all those extended warrantees are nothing more than an insurance.

Insurances are never worth the money, because if that were the case no insurance company would be able to make any profits.

However an insurance covers you against having bad luck.
 

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Quote:
Originally Posted by Cleveland Plasma
The coverage above would not be enough.The RMT42500 is only good on models of Televisions priced $2500 and below. I highly dought a 50" plasma is below this price any where. A person would want to look at the Warrantech RMT45000 for televisions $5000 and below.


If a person buys the right warranty and doesn't buy from a retail store, they are worth the money.
Agreed. I only linked to one warranty, but clearly many different types exist. Try here for more:

http://www.tvauthority.com/Electroni...ns.asp?cat=303
 

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Quote:
Originally Posted by htpcfan
Warrantees in my opinion is the wrong term, nothing is warranted since you have to pay for it. Really all those extended warrantees are nothing more than an insurance.

Insurances are never worth the money, because if that were the case no insurance company would be able to make any profits.

However an insurance covers you against having bad luck.
I completely disagree. Insurance is the right term and worth the money if you believe it is worth the money. In your opinion, they are not worth it. But to me - they are a great piece of mind. Extended warranties (or insurance as you call it) are there for people who "want" the choice and are "worth it" even if they do not exercise any repairs.


And about your comments about profits and companies is silly. Your argument is weak because all companies are in the business to make money. Insurance companies, food stores, and all other merchanise retailers would be not worth the money using your logic.
 

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Quote:
Originally Posted by htpcfan
Insurances are never worth the money, because if that were the case no insurance company would be able to make any profits.
This makes no sense at all. One of us has no concept of what insurance is. Please explain further. BTW, do you have insurance for your car?
 

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Originally Posted by htpcfan

Insurances are never worth the money, because if that were the case no insurance company would be able to make any profits.


Quote:
Originally Posted by Jerry G
This makes no sense at all. One of us has no concept of what insurance is. Please explain further. BTW, do you have insurance for your car?
Actually this makes entirely good sense if you've ever studied how insurances work...this is basic econ 101. Sadly, htpcfan is one of the few here who actually DOES understand the concept of insurance. Having car insurance doesn't apply because the government requires that you have it. Insurance is pretty much just a dollar value placed on your "fear" or "risk" that something will go wrong. Obviously insurance companies make money. If for example you pay $500 for an insurance plan that covers your monitor, then on average, it probably costs about $250 to repair that monitor over 5 years. Thus, the insurance company makes about $250 off your plan. It would be wiser for you to put that money for ANY insurance plan into a bank, let it collect interest, and then if needed use that money for repairs. This goes for anything. The only exception to the rule is typically catastrophic events. (like medical insurance). Obviously your plasma breaking down is not a catastrophic event, and thus anyone buying insurance on a TV is basically losing money out of fear of it breaking down. You are spending money to allievate the "fear" of it breaking down. But, remember, all you have to fear is fear itself...


Now, having said that, if you plan on "abusing" your monitor, buying one can be a good thing. For example, if you know your insurance plan covers burn in and you plan on playing video games on it all day long.
 

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Doc:


Sadly htpcFan stated that insurance is NEVER worth the money. Given this blanket catch-all statement he is in a small group of individuals. And no, I do not believe he grasps the concept on insurance whatsoever.
 

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Just because a company makes a profit on the protection plan doesn't mean that it's a waste of money. Let's say you're offered a protection plan on a TV for $225 and let's say you decide not to purchase it. Then your TV breaks and it costs you $250 out of your pocket to have it fixed. At this point you wish you had bought the protection plan.


Now let's say you did buy the protection plan and the TV breaks. Do you really think it's going to cost the company the same $250 to have the same repair done? Of course not because you might pay $50 an hour in labor (or whatever the current average labor rate is) but do you think the company pays their technicians that much per hour? No way.


This is how a protection plan can be a benefit to both the consumer and seller. The seller makes money because their labor rates are lower and they acquire parts cheaper by buying in bulk or at wholesale.


I realize this can't be applied to all types of insurance but in the world of electronics this is how it can be a win-win situation. Sometimes the seller spends more in repairs than the customer paid for the warranty (which doesn't happen frequently) and sometimes the consumer never uses the warranty....but to say that just because the seller makes money on it proves that it's not not worth it is too strong of a statement I think.
 

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For me, extended protection contracts have never payed for me. None of my TVs have ever had a problem for many years after the contract expired, even 5 year ones. The only device I ever had were I could use the extra cost contract was a JVC VCR and that failed again after the contract, so it was a wash!
 

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For me, extended protection contracts have never payed for me. None of my TVs have ever had a problem for many years after the contract expired, even 5 year ones. The only device I ever had were I could use the extra cost contract was a JVC VCR and that failed again after the contract, so it was a wash!
 

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For me, extended protection contracts have never payed for me. None of my TVs have ever had a problem for many years after the contract expired, even 5 year ones. The only device I ever had a failure that I could use the extra cost contract to have fixed was a JVC SVHS VCR and that failed again after the contract, so it was a wash! I believe if I never had bought any of the extended contracts for all the devices I did I would have saved enough money to buy a brand new 42" plasma HDTV today!
 

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I don't think you can generalize about insurance in being a good or bad thing. IMO, it depends on how catastrophic a loss would be, and what percent of the premiums are returned to policyholders to settle claims, rather paying sales commissions or increasing the underwriters' profits.


Compared to other types of insurance, such as auto or home insurance, extended warranties are almost always a poor deal. Most purchasers of plasma TVs will not be financially ruined if they break down, unlike the impact of an uninsured liability for an auto accident, or the value of a house destroyed by fire or other mishap.


Auto and home underwriters typically pay out 80% to 90% of their premoum income in claims (sometimes more - even >100% - in a bad year). The similar figure for most extended warranties is about 40% or less. You may be buying some peace of mind with these warranties, but at a very high price.


Virtually every independent study of the subject has found extended third-party warranties to be a poor bargain, and it's no different when plasma TVs are involved.
 

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The insurance companies have data we do not. They are betting the product will not break down. Because of their research, they know the odds of a particular product breaking down. In Vegas terms, you are betting against the house. It is better take all the products you buy extended warranties on and put that money in a savings account than into the insurance companies account. If you have 3 or 4 major appliances and their extended warranties are $300, you would have around $1000 that could be applied to repairing those appliances. Not only that, you would have $1000 that is under your control. There are always circumstances that you may regret not getting a warranty, but then, there are people who will get in their car today and regret that decision as well.


I would be more concerned with making sure the TV would be covered by the home owners or renters insurance for theft or disaster.
 

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Also, I know at BB you can negotiate more on the price of the TV if you also get the extended warranty. The warranty (I believe pays them well, commission?) and they are able to knock some off the price of the TV.


I did.
 

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Quote:
Originally Posted by Liver
Also, I know at BB you can negotiate more on the price of the TV if you also get the extended warranty. The warranty (I believe pays them well, commission?) and they are able to knock some off the price of the TV.


I did.
You can also "return" the warranty after you buy the TV.
 

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To say all insurance in general makes no sense is ridiculous. The concept of insurance, when used properly, is to protect you from events you cannot afford to manage yourself. You share the risk with many people so that no one individual is wiped out by an event. Hence, liability insurance makes perfect sense to protect you from that rare but potentially catastrophic event, such as running into a school bus full of kids with your car, etc. It's cheap to buy huge liability coverage to protect your assets from a huge lawsuit that might result from such an accident. So, if you have any substantial assets, you should have a liability umbrella to protect them. To the contrary, if you have dependents but few assets, then term life insurance makes very good sense. Once you accumulate assets or have no dependents, life insurance makes little sense.


Where people make mistakes with insurance is buying it cover small risks, and the plasma TV should be one of those. If you cannot afford to repair or replace the plasma screen should it break, you probably shouldn't buy one. Same with car collision insurance. In those cases you should be self-insured because you can afford to take care of the problem yourself. If you cannot afford to replace the item, but you want it anyway, then insurance is a decent consideration unless the insurance is priced such that you are likely to spend more on insurance than the repair.


I'm not in the insurance business. I do NOT carry collision/comprehensive insurance on any of my 4 cars and 5 motorcycles. I wouldn't like it, but I can afford to replace them, so insurance would be stupid in that case. However, I do carry the maximum liability coverage provided by my auto insurer supplemented by a huge umbrella policy to cover all my assets.


In the case at hand, the insurance is generally not a good idea. However, I have found the RMT policies discounted to such a low price that it would be a reasonable idea for people who cannot easily afford to replace the item.


Bill
 

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Quote:
Originally Posted by Bill Ball
To say all insurance in general makes no sense is ridiculous. The concept of insurance, when used properly, is to protect you from events you cannot afford to manage yourself.


Bill


Exactly. But, anyone should be able to manage without their plasma....that is not catastrophic like I said. "true" insurance are for those catastrophic events like medical insurance and home owners insurance. Insuring that your new video game console won't break down is just getting ripped off.


The flip side is abusing the system. For example, the BB service plan will let you exchange/repair your set if you have one dead pixel. They are counting on the fact that you will not take advantage of this situation. For example, my TV from BB already has a dead pixel, so if I wanted to, in 4 years I could walk into the store and demand a replacement set they day before my ext warr expires...no doubt my set will be discontinued by then so I'll just have to get a new set. They are counting that I will not do that because if everyone did that they wouldn't be making money off these extended warrenties. So, ya, in theory the ext warranties are a rip off, but if you abuse the system you can make out like a bandit.
 
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