CommunityService Contracts and Extended Warranties: Are extended warranties on your purchases ever worth the extra cost?

Service Contracts and Extended Warranties: Are extended warranties on your purchases ever worth the extra cost?

Every time I go to buy something these days, I end up getting offered an extended warranty or service contract.  When it comes to repair issues, are service contracts or extended warranties ever a good thing to consider?

The Money Pit Answer

Product service contracts or an extended warranty might make sense to have if the products are expensive to repair, like electronics. It also might be smart if you have a very low tolerance for unexpected repair expenses. For most new household appliances however, service contracts are not the best investment. The repair incidence is low and the cost of repair not likely to break the bank. 
Keep in mind that some credit card companies, have programs that will double a manufacturer's warranty simply for using this company's credit card to purchase a product. This is like getting a free extended warranty simply for making the purchase through your credit card. In this case, it is unnecessary to take out a product service contract.