Article: Gambling on A Service Contract; The Cost Can Be Considerable, But Invaluable If You Have a Lemon

Almost every new home appliance or electronic apparatus you buy comes with a limited warranty for parts and labor. The duration of warranties varies, as does the coverage for certain parts and/or labor that may or may not be included in the manufacturer's terms and conditions of purchase.

If the new product breaks down within the warranty period, assuming reasonable care and handling, usually you can return it to the dealer to be repaired-so long as you have the original receipt or other proof of purchase.

But what about after the warranty expires? Dealers often offer service contracts or extended warranties as "insurance policies" against equipment failure. And many consumers are ...

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