Alpharetta, Georgia
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We recommend avoiding service contracts, even those provided by companies that have no record of engaging in such shenanigans. The reason is that coverage for contracts that cover homes and cars, for example, can cost hundreds of dollars.

We also believe that it makes much more sense to buy reliable products and maintain them as the manufacturer recommends.

Do that, and there's a good chance you won't need to make any significant repairs before the product becomes obsolete. Put the money you otherwise would use to buy a service contract into a savings account or product repair-and-replacement fund.

If a product breaks after the express warranty expires, there are many other ways you may be able to obtain a free or low-cost repair.

Many credit card issuers automatically extend the manufacturer's warranty for an extra year or so for most products you buy using their card. Many companies also have goodwill programs and service campaigns that provide free or low-cost repairs or product replacement for items that fail in an unreasonably short time.

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