In a September 6 piece, Why you should avoid home warranties, Consumer Reports again takes a shot at service contracts. Noting a recent complaint filed by New Jersey regulators against Choice Home Warranty for allegedly making it difficult to obtain benefits, CR “recommend[s] avoiding service contracts” because those “that cover homes and cars, for example, can cost hundreds of dollars.” But what if the car or home costs many thousands of dollars? Isn’t spending a few hundred bucks on a service contract worth it to minimize risk and secure peace of mind? “No,” says CR, “it makes much more sense to buy reliable products and maintain them as the manufacturer recommends.” Now it’s clear, just buy things that won’t malfunction or fail. Continue reading →
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Filed under Customer Experience, Resolving Disputes, Risk Management, Service Contract, Warranty
Tagged as automobiles, Choice Home Warranty, complaint, consumer, consumer protection, Consumer Reports, consumers, contracts, counsel, customer satisfaction, customer service, cutomer-first warranty philosophy, Express Warranty, extended warranty, fine print, home warranty, Implied Warranty, law, legal, Magnuson-Moss, manufacturer, merchantability, New Jersey, product recall, recall, repair-and-replacement, risk averse, service contract, Service Contract Statutes, service contracts, small print, smart buying tips, unintended consequences, value, warranty, warranty liability