Sometimes hardware just has "issues". Take the slightly Sony
video camera that I was using this week to film a project. It was
one of the models with onscreen buttons (a touchscreen).
While that seemed like a great idea, it actually served to make
things a lot more difficult to control. Just to fade in or out of a
scene involved going through at least three, if not four, different
levels of onscreen menus.
It took so long for me to complete the project not because of
the complexity of using the video camera, but because the "great
idea" of having a touchscreen was ultimately a failure. Two out of
three times the "buttons" just didn't work, and you never knew
which was the time it wouldn't let you stop recording, stop
playback, rewind, or select a fadeout.
So what to do with a year-and-a-half-old Sony video camera
that's not working properly?
Generally, the warranty would be done, and we would be forced to
pay for a repair. Depending on whether I took it to a dealer or
back to the store, we could be looking at paying the same price to
have this older one repaired as buying a new video camera -
especially since similar models can now be had for under $400.
Thankfully, though, the owners of this camera had decided to
purchase the extended 4-year "performance service plan" from Best
Buy.
I've found that these extended warranties can be expensive for
certain things, and the items that you cover under them tend to
rarely break down. In this case, though, it obviously made sense,
as it saved us the repair costs.
I took the video camera into Best Buy, and they didn't even
check the information (address, phone, etc.), simply asking me if
the information on the warranty plan was still correct. It was, and
they took the camera in without even scrutinizing it. For all they
knew, it could have been dropped or exposed to moisture, but
reading up on the plan, it even covers accidental damage. Pretty
impressive.
Perhaps it's worth the extra money. Or perhaps not. I guess
we'll see exactly whether the camera is repaired/replaced in the 14
days that was quoted to me.
But what about buying a plan for a computer? Macs come with a
one-year warranty, which provides what most people need - something
to cover their machine for the first year in case any faults are
glaringly obvious in their new purchase. Quirks are expected to
develop later on during ownership.
AppleCare can be purchased for an additional amount of money
(depending on the computer model). It covers the machine for an
additional two years (three years of total coverage) and gives you
telephone support for those additional years.
When is it worth purchasing the extended warranty?
While your circumstances may vary, I've found that a desktop Mac
sitting at home is significantly less likely to fail than a
notebook computer that you bring with you everywhere you go. For
instance, if you purchase a MacBook Pro, it might be advisable to
look into a longer warranty if you plan on traveling with the
machine.
Some stores, such as CompUSA, offer their own repair/replacement
guarantees, and I've heard stories of people bringing their older
PowerBooks in and actually having them replaced by newer machines
under the extended warranty.
In hindsight, buying the warranty for this video camera was an
excellent idea. Sure, it might not have failed and the money would
have been wasted. But since it did fail, the peace of mind that it
would not cost anything additional for the repair was worth the
cost of the warranty. Plus, it's still covered for another
two-and-a-half years after we get it back from being serviced.
My general rule: Expensive portable devices that are complicated
(including notebook computers, video iPods, and digital cameras)
are generally worth getting a warranty. Things that sit at home,
such as a TV set, are worth thinking twice about spending the extra
money.
Ask yourself, did your last one fail? If not, this one probably
won't either. 
