Technology Electronics

Should You Buy an Extended Warranty on an LCD TV?

    LCD TV Costs

    • Your new LCD television could easily become your most expensive home appliance. As of 2009, the average cost of a brand name 40-inch LCD television ranged from $900 to $2,400. The payoffs are worth it: HDTV provides countless hours of entertainment in the home. However, when something goes wrong, repairs can be expensive.

    Manufacturer Warranties

    • All manufacturers provide up to one year of warranty service. Some will cover the entire cost of repairs for the duration of the warranty; others charge for either labor or parts after three months. Most do not cover power surges or cosmetic damage caused by normal usage. The warranties cover only what the companies consider to be "manufacturer defects."

      A warranty that lasts for only a year is simply not enough. Manufacturer defects are normally detectable within 30 days of purchase. In this case, one would exchange the television at the store for a new one. Televisions that are functional right out of the box generally will outlast the one-year warranty. As your TV passes the one-year mark, the chances of malfunction increase due to usage and wear-and-tear.

    Cost of Repair

    • Television repairmen charge about $100 to look at and diagnose your LCD TV. From that point, they will decide whether they can repair the TV. The average repair cost of an LCD television is between $400 and $700. If a repairmen agrees to try to fix your television, you will be charged for parts and labor even if they can't fix it.

    Service Agreements

    • The price of a service agreement is normally 15 percent to 20 percent of the original purchase price of the television. A five-year service agreement for a television that costs $1,200 is about $250 on average. Before buying an LCD television and a maintenance agreement, find out exactly what type of service your retailer offers. Most retailers offer yearly in-home maintenance with their service agreements. This benefit will make sure you get the most for your money if nothing goes wrong with your television.

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