Consumer protections vs. Consumer Value
It has become standard for many retailers to offer a supplementary ''protection plan" on appliances and electronics for a small fee added to the sale price. The plan may seem like a good idea to the consumer interested insuring an expensive purchase for a small incremental amount. But before buying, you should be sure that the plan offers real added value, because some of these plans overlap with other protection programs you already have. For example, reputable retailers usually sell products with solid manufacturer warranties, because they don't want the bad reputation and the hassles that come with unhappy customers. In fact, in today's competitive world, many retailers already have a ''satisfaction guaranteed'' policy built into everything they sell. In addition, if you are paying by credit card, you may already have purchaser protection that is activated by simply using the card. Naturally, you wouldn't want to pay extra for something you're already covered for, so it's worth determining what you already have before you buy more.
Of course, there are many consumer protection plans that offer reasonable value. For example, some extended warranties offer a safety net after the manufacturer's warranty runs out (similar to automobile plans). In those cases, be sure the product is one you'll want to keep and use for the duration of the warranty period. For example, it makes no sense to pay an extra thirty dollars on a one hundred dollar item, if you expect you will be able to buy a newer version in a few years for even less. Some ''total care'' service plans for complicated equipment, such as a car, computer or HVAC unit, are quite popular, as are ''price freezing'' plans on home utilities such as electricity, gas and water. At the end of the day, it all comes down to your confidence in a product or service and your willingness to put up with (or pay up to avoid) the inconvenience of complaining, should it fail to meet your expectations.