You’ve just picked out the perfect laptop when you are accosted by store employees about the need to buy an extended warranty or insurance. Are they acting purely altruistically? Or might they be hoping to line their own pockets with a commission? When does it make sense to buy laptop insurance or purchase an extended warranty?
A little information on laptop life
First, it is important to consider how long you can reasonably expect your laptop to last. Laptop life depends on the manufacturer and on the user. A person who picks up the laptop that was left plugged in all night on the couch, drops it on the kitchen table, and eats a crunchy bagel while surfing the Web is going to experience problems much more quickly than someone who is careful to use the laptop on proper surfaces and avoid bumping it into things. Averages for laptop life vary wildly, but two to four years is a reasonable middle ground.
What else should you consider?
However, is a laptop that lasts four years going to be useful to you? On average, laptop hardware becomes obsolete in just two years. It might be nice to have a laptop that lasts four years, but chances are, you’ll be looking to upgrade anyway long before that.
Laptop Warranties
Most laptops come with a manufacturer’s warranty. Some are only 90 days, but many are as long as one year. A laptop with serious defects, like a bad hard drive, is going to manifest those problems quickly, while still under manufacturer’s warranty. Once a laptop has passed this “breaking in” period, it should run well for another year or more. This is where extended warranties kick in. Stores sell extended warranties at a marvelous profit margin- usually 50%. There is little risk that the laptop will develop problems during this period.
Laptop Insurance
A person who steps on their laptop, or has it stolen while they use the restroom at a coffee shop, is not covered by any warranty. The only hope for such an individual to recover costs is laptop insurance. The good news is that your homeowner’s insurance probably already covers a stolen laptop. The bad news is that your deductible is probably similar to the cost of a new laptop.
Final Advice
So when does it make sense to buy the extended warranty or insurance? Unless you’re a major klutz, it probably doesn’t. Given the expected useful life of the laptop, you’re better off saving your money for the upgrade.
