Is the Extended Warranty Worth It? (Best Buy vs Costco)

< p > You are at the checkout counter.The sales rep says, "For just $299, you can protect your investment for 5 years." Do you buy it ? Or do you take your chances ?

< p > As installers, we see which TVs die and which ones get fixed.Here is the insider scoop on warranties.

< h2 > 1. What Breaks ? < p > Main Boards: Common. A power surge fries the HDMI port. < br > Power Supply: Common. Capacitors blow. < br > Panel(The Screen): Rare, but catastrophic. If the panel fails, the TV is totaled.

2. Best Buy(Geek Squad) vs.Costco(Excellence Plus)

< p > Costco: Generally the best value. They often stack their warranty on top of the manufacturer's, giving you 2 years for free, and offering cheap extensions (often $99). < br > Best Buy: More expensive, BUT they often cover Burn-In on OLEDs.Costco does not.If you are buying an OLED, Best Buy's warranty is the only one that protects you against image retention.

< h2 > 3. Accidental Damage(The Big "Gotcha") < p > ALMOST NO WARRANTY COVERS PHYSICAL DAMAGE. < br > If your kid throws a Wii remote at the screen: Not covered. < br > If you drop it while mounting it: Not covered. < br > This is why hiring a professional installer(who is insured) is better protection than a warranty.If we break it, we buy it.If you break it, you are out $2,000.

< h2 > 4. Credit Card Perks < p > Check your wallet.Many premium Visa / Amex cards automatically double the manufacturer's warranty (adding 1 extra year) for free. Don't pay for coverage you already have.

< h2 > Conclusion < p > Buy the warranty if: It's an OLED (get burn-in cover) or if it's cheap (Costco). < br > Skip it if: It's a cheap bedroom TV. The warranty costs 50% of the TV price.