Whenever I make a purchase of an appliance or electronic device, I rarely pay for extended service contracts when one is offered.
I don’t like the idea of dishing out extra cash for a service contract that I may not need.
Typically, the item would be new and covered under a warranty, so I would rather take my chances and hope that the device doesn’t malfunction after the warranty expires. There are certain risks involved when we pay for service contracts, therefore, it is wise to do some thorough research prior to buying one. For instance, an HVAC technician suggested that I purchase a service contract with his company. He mentioned that it would save me money on future service calls, and additional service would guarantee that my HVAC unit functioned more efficiently. I wasn’t completely sold on the terms of the agreement, and I found that it would be more expensive than the cost of my yearly service. I informed the HVAC technician that I would reach out to him if I changed my mind. When he left my home, I did a quick internet search for HVAC service contracts, and sure enough I found many articles stating that most service contracts are not worth the money. In fact, there were a few articles that mentioned that some homeowners believed they were scammed by their HVAC technicians. They mentioned that on every service call the technicians found issues with their units that required extra parts. The homeowners believed this was a tactic used to get more money from them. After discovering this red flag, I opted to skip getting an HVAC service contract as I would lessen the chance of getting scammed by my HVAC provider. I am not completely against these service contracts, but if you plan on purchasing any HVAC service contracts, I recommend doing some research first.