Are service contracts ever a good thing to consider?
Maybe. If the product is expensive to repair, like electronics, it might make some sense to take out the service contract. It also might be smart if you have a very low tolerance for unexpected repair expenses. For most new household appliances however, services contracts are not the best investment. The repair incidence is low and the cost of repair not likely to break the bank. Keep in mind that some credit-card companies, like American Express, will double a manufacturer’s warranty simply for using its credit card to purchase a product. This is like getting a “free” extended warranty simply for making the purchase through your credit card.
