Tech View: Buying extended warranty might not be worth the cost

Since the advent of the personal computer, businesses and individuals alike have pondered the question, Do you want the extended warranty with that? Not all extended warranties are created the same, and their cost can run anywhere from 10% to 25% of the cost of the computer. What, then, are some of the things folks need to take into consideration when evaluating the purchase of an extended warranty?

First, let’s talk about base warranty. All machines from the major manufacturers come with at least a one-year warranty. The base warranty usually includes “depot” support, which is a nice way of saying that you have to either drop off the computer somewhere locally or ship it to the mainland. Sometimes shipping costs are included, sometimes they are not, sometimes it’s one-way, meaning you pay to ship it to them, but they will cover the return or replacement shipment.

The base warranty covers hardware defects. If something is wrong with any hardware component, it will be repaired or replaced. Anecdotally, replacements are more common than actual repair.

It is important to point out that your data will probably NOT be saved, and in some cases folks have reported that their data was actually deleted, even though the drive was not damaged. Just another reminder to always have your data backed up. Any applications you added after purchase also will be gone. In short, your computer will be like it was when you bought it.

Under a base warranty, usually, you can place calls only between 8 a.m. and 6 p.m., five days a week. In Hawaii sometimes it’s local time, sometimes it’s Pacific time, depending on the global awareness of the manufacturer. Typically, their commitment is to begin work within one business day of your first call.

Is this good enough for you? Many folks think so. But what does an extended warranty offer?

One of the most significant options typically offered with an extended warranty is on-site as opposed to depot support. If your problem can’t be resolved over the phone, a technician is sent to your residence or workplace to look at your gear, and if repair or replacement is needed, shipping costs are covered.

Another option often offered is an extension of the length of the warranty. Common options are one-, three- and five-year durations, with three years being the sweet spot, both in terms of price as well as suitability. A one-year extension isn’t long enough to be of significant value, while five years is just too long. If your computer breaks after four years … it’s time to just buy a new one.

Extension of the time period in which you can call, as well as response time, is offered as an alternative under extended warranties as well. This option is popular with businesses and government agencies who need immediate assistance. Typically, this upgrade is for 24/7 support, with a commitment to begin work in four hours or less.

Accidental damage protection is another popular option available from many manufacturers. This one is pretty self-explanatory. If you accidentally damage your machine — say, by spilling coffee on it — you are covered.

Most important for some is a “keep your drive” option. That is, if your computer needs the hard drive repaired or replaced, your original hard drive is returned, intact. This is extremely helpful for those organizations that must comply with regulatory directives to ensure data privacy.

Finally, don’t confuse an extended warranty with technical support. The warranty provider will provide technical assistance to the extent needed to ascertain whether a hardware failure is present, but they won’t provide assistance with installing, operating or upgrading software; data recovery; or other guidance. If you are infected with a virus or ransomware, the warranty provider might assist you with resetting your hardware back to the way it was when you bought it, but that’s about it.

John Agsalud is an information technology expert with more than 25 years of IT experience in Hawaii and around the world. He can be reached at jagsalud@live.com.