Are Warranties Worth It?

A: Deciding whether or not to get an extended warranty is something that gives most people a great deal of trouble. Even after reaching a decision, most folks continue to second-guess themselves as to whether they made the right choice. In actuality, there isn’t one right or wrong answer. Even if there were, what is right for you might not be right for others.

I’ll attempt to shed some light on the decision-making process. Hopefully this will give you some guidelines about what issues you need to consider. In the end, however, you will have to make the decision for yourself. Whatever you decide to do, there is no way to be sure that you won’t eventually wish you had gone the other way.

Extended warranties and service agreements are very much like insurance policies. You purchase them as a hedge against potential catastrophe. Problem is, not everyone has the same definition of catastrophe. If money is tight for you, any repair at all could be catastrophic. If money is not an object, even total replacement might not be seen as a major problem. In the end it all boils down to a money issue, tempered by your willingness to gamble that you won’t eventually be faced with forking over your hard-earned cash to pay for major repair bills.

Camcorders are very expensive to repair. There’s just no way around it. Labor costs alone can range from 50 to 100 dollars per hour. With assorted parts thrown in it is entirely possible to end up with repair costs that can exceed the original purchase price. In fact, some camcorders have become almost disposable. Inexpensive VHS and 8mm units are as cheap to replace, as they are to repair in many cases. But with more advanced models, and their higher costs, that is not the case.

There are several important questions to ponder when considering an extended warranty.
1) How long do you need for the camcorder to last before you plan to replace it?
2) Will it be subjected to harsh conditions and/or rough treatment?
3) How much will it be used?

If you feel like you’ll replace the camera in a few years anyway, then it doesn’t make sense to buy any kind of plan. But, no matter how long you plan to keep it, if it is going to see heavy usage, be carried around a lot, or exposed to an unfriendly environment, then you should give greater consideration to a warranty extension. This is especially true if you spend a lot of time at the beach, or in extreme hot, cold, or wet conditions. On the other hand, if you anticipate using your camcorder like most folks do, then you probably don’t need one. Cameras that are stored in cool, dry, dust-free conditions and only used a few times a month can be expected to last 3-5 years with no problems whatsoever. In fact, such units could conceivably last up to ten years without serious problems, though that would be an exception rather than the rule. Also, keep in mind that the less you spend on a camcorder, the more likely it is to have parts that are subject to early failure. At the other end of the spectrum, camcorders that are packed with bells and whistles have more parts and systems with which to have a problem.

What really counts when trying to anticipate maintenance and repairs is total hours of run time (the time that tape is actually rolling). Many current models include an hour meter as a feature item. This is so you can keep track of how much time the unit has spent in use. All camcorders should have a professional cleaning and adjustment after every 100 hours of actual run time. If you only use yours 2-3 times per month for an hour or so, then you’ll only need to do it after several years of use. To maintain a clean tape path you might also consider using a high quality, dry-type head cleaning tape after every 25 hours of use. Be very conservative when using head cleaning tapes and only run them for the recommended length of time. DO NOT OVERUSE THEM. These tapes can be very rough on video heads. You should keep one with you at all times and run it if you see obvious picture problems.

It is also a good idea to have some idea of the consumer laws in your particular state. Each state looks upon warranty agreements in a different manner, with varying levels of protection. Many states also have “lemon laws” which offer additional protection, as well as remedies for consumers who end up with faulty equipment right out of the box.

In the end it is entirely up to you to decide if you need the protection of coverage beyond what is provided by the manufacturer. While you’re at it, you should check with your insurance agent to be certain that you have protection in the event of fire or theft. Some policies also offer protection if it is dropped or damaged during normal use. Finally, be sure to check what coverage you might have if the unit is purchased with a particular credit card, or through a buying club.