Squaretrade.com

With an A rating with BBB, but 79 complaints in the past 36 months, Squaretrade's complaints are still within reason. There is only one of the three "ripoff" clauses - the strict limitations clause which is probably the least damaging of the three. Pricing is good, but no 5 year warranty offered. One small caution, some of the gaurantees promised on the ads dont apply to large TVs.

Squaretrade's warrany terms and conditions were easier to access than several of the other companies. The terms are conveniently available on the company's web site by clicking on the "Learn More" tab and then scrolling down to "Coverage Details."

Upon calling the company I was able to get through to a live person in the claims department within 2 minutes. He was very courteous in answering my questions.

Not listed in the terms and conditions are the size breaks for what TVs must be shipped to the company's service depot for repair. From calling the company I easily discovered the following: LCD TVs Above 32" size qualifies for in-home repair. Plasma TVs do not qualify at all for in-home repair, they are a settlement repair only item. LCD and DLP TVs above 32" qualify for in-home or take-in service (many TVs cannot be repaired in home.)

One of the most noteworthy and slippery features of the service contract is the limitation of amounts listed in the Limit of Liability as follows:

"LIMIT OF LIABILITY: The total amount that We will pay for repairs or replacement made in connection with all claims that You make pursuant to this Service Agreement shall not exceed the purchase price of the Product, less taxes. In the event that We make payments for repairs, which in the aggregate, are equal to the purchase price or replace the Product with a new, rebuilt or refurbished product of equal or similar features and functionality, We will have no further obligations under this Service Agreement."

This clause keeps the service to a limited amount of the replacement value of the purchase price or new or refurbished TV of like features. Here's an example of how this works (via phone explanation from a Squaretrade representative). Let's assume you have a warranty with Squaretrade for a 50" TV costing $1000 and you have a repair service done on the TV that costs Squaretrade $550 (an average repair bill). The TV is repaired and back in your home and you have another problem with the TV 6 months later.

Squaretrade will then give you an amount equal to the replacement cost of a TV of like quality. TV prices have come down somewhat and a replacement then costs $700 so Squaretrade owes you $150 to satisfy the warranty fully.

So, while there is no depreciated value buyout clause, there is a strict limitation on repair costs and replacements. It is not a pure repair or replace warranty. It greatly limits the company's cost exposure.

Squaretrade has only 3 year extended warranties (from product date of purchase). Since TVs are much more likely to default due to mechanical or electrical failure in years 4 and 5 (than in years 2 and 3) it makes the warranties much less valuable.

This passage leaves a lot of questions and terms up in the air "at our discretion." "Place of Service: At our discretion large items will receive On-Site Service and we will arrange to repair or replace the Product at Your location during normal business hours." I suppose that, if "at their discretion," they do not want to give On-Site Service to your TV they can make you pay to ship the TV to their service depot.

The 5 Day Service Guarantee for large items with in-home service actually states that it only applies to the time a local technician will contact you. Repair times are not guaranteed. Here is the wording from the company's web site: