Smart Consumers Plan for the Unexpected

Extended Warranties Help Consumers Manage Unanticipated Expenses

Nov 01, 2012, 08:00 ET from Service Contract Industry Council

TALLAHASSEE, Fla., Nov. 1, 2012 /PRNewswire/ -- A nationwide survey by Hart Research Associates revealed that 48 percent of Americans say they do not have the savings they need to achieve financial stability, and an October report by Consumer Reports states financial woes are deepening for middle- and upper-income households. "While some maintain consumers should put aside cash for repairs and replacement of essential electronic products or appliances, it is not possible or practical in today's economy," says Timothy J. Meenan, Executive Director of the Service Contract Industry Council ( "An extended warranty can help consumers manage unanticipated, unbudgeted expenses." 

Extended warranties are a fixed component of retailing in America, particularly in uncertain economic times: they meet a large market demand; provide an enhanced quality product; and at 10-20 percent of a product's cost, an extended warranty more than pays for itself when the simplest product repairs typically cost significantly more than the price of an extended warranty.

Annual sales of extended warranties hover around 250 million annually for consumer electronics; 11 million warranties alone are sold annually for PCs and laptops.  An extended warranty complements a product's limited manufacturer's warranty where it falls short and then extends the repair and replacement coverage after the relatively brief term of the manufacturer's warranty expires.  

REPAIR DATA:  Consumer products, top failures and average repair costs.

Laptop: $650:                         

Average Extended Warranty: $65-130


Average Repair Cost

Mother Board                             


LCD Screen                                


Hard Drive                                    


Optical Drive                                 


Source: N.E.W. Customer Service Companies, Inc. (NEW)


LCD TV (37" or larger): $1,500.00     

Average Extended Warranty: $150- $300


Average Repair Cost



Control Box                                         


Inverter & Main Board                            


Power Supply                                        


Source: N.E.W. Customer Service Companies, Inc. (NEW)


Refrigerator (side by side): $1,200.00    

Average Extended Warranty: $160 - $200


Average Repair Cost







Defrost Heater                                             


Source: Assurant Solutions


Tablet: $425.00               

Average Extended Warranty: $45 - $90


Average Repair Cost

Main Board                        






Source: N.E.W. Customer Service Companies, Inc. (NEW)


Purchasing an extended warranty provides protection, peace of mind and a full complement of benefits:  24-hour toll-free technical support; access to local, pre-qualified repair and service professionals, power outage and surge damage protection, and a 30-day free look back period so if you believe you purchased the warranty impulsively, you can return it.  

To ensure the highest quality customer service, protect consumers from unethical providers, and safeguard the integrity of the industry, the majority of service contract providers proactively seek and secure regulatory oversight from state insurance regulators and state legislators nationwide.

For all of these reasons, an extended warranty is a practical and intelligent way to provide certainty that an unexpected repair or replacement will not impose a sudden financial hardship, at a time when consumers are already challenged by current economic conditions.

About the SCIC
The Service Contract Industry Council ( is a national trade association established in 1989 that has been instrumental in working with state legislatures and regulators across the country to develop and pass legislation to protect consumers and enhance the integrity of the industry.

SOURCE Service Contract Industry Council