Before considering a service contract, make sure you understand your warranty coverage. Compare the coverage of your warranty to the coverage offered by the service contract to decide if the contract is worth the additional cost. You may not benefit from the service contract if the product is unlikely to need servicing or if the potential of repairs is very low. Service contracts, like insurance policies, often have deductible amounts. And there is a possibility that you may be charged each time the item is serviced.
Some expenses are limited or excluded.
If the service contract is offered by a local retailer or dealer, you may only be able to get local service. Consider the possibility that problems may develop while you are traveling or after you move away from the area. You may be better able to decide if you need a service contract after you have owned the product for some time. Find out when the offer to buy a service contract expires. If possible, consider waiting until your warranty period expires to buy a service contract.