I don't know much about computers and I am not sure about even getting one. A salesperson lightly went over it but I don't know if I can use it. What's your take on it?
Touche, Salesman. Usually the manufacturer will only provide a one year warranty. By purchasing a three-year through Fry's, if something goes wrong you will have that additional coverage. Mind you, this doesn't cover things like: software errors, aging batteries, physical damage, but pretty much anything else is fine. Also if it dies in the first year, a PSC is a great alternative to the manufacturers warranty because with the manufacturer, you have to ship it off yourself, and wait probably a month or two. With a PSC you bring it to the store, and receive a complementary loaner while we take care of the problem. So the only question is how lucky do you think you are?
If you buy a refurbished anything, get a PSC If its brand new...on a notebook, I'd still get one. Desktop, probably not cuz unless you get a totally proprietary system you can replace most parts yourself if youre willing to get the knowledge on how to do it and spend your time on actually doing it. Dont bother with a 2yr or 3yr PSC, if youre going to drop the money on any extended PSC, may as well get the 5yr. Odds are, by the time 5 years is up, it will be more economical for Fry's to simply replace whatever it was that broke, rather than fix it. Practically an automatic upgrade.
Hypothetical...your notebook stops loading windows. You have no idea what has happened. Its not under anybody's warranty, so you bring it into the Fry's Service Dept for repair. 99 for the diagnostic which shows the HDD (hard disk drive) has failed 79 to 99 for a new HDD, and 49 to install it 59 to install windows IF you have that recovery kit you were supposed to make. dont have it? 79 then. (assuming you are incapable of installing windows of course) Total? Youre above 300 without even having a serious failure, and not counting sales tax =P
Now your notebooks screen stops turning on, and still no warranty. You can hit 800 easy for a LCD replacement.
Unlike a notebook, a desktop rarely has anything exceed 300 in one go. The most expensive replacement would be a motherboard.
In general, if you bring in your computer to have it serviced under the PSC (with an actual PSC-covered failure, no coffee in the keyboard please) you will have made the PSC cost-effective. This is also why I wouldnt go for 2 or 3 year duration PSC. The failure rates are much higher across 5 years, while for 2 and 3 year are significantly lower.
Today's hard drives have a life span of between 3 and 5 years.
Consumer Reports does not recommend extended warranties on cars, old tube tvs, and some other stuff. But they say that if you plan on keeping your laptop or desktop computer for more than the standard one year factory warranty, the cost of repair will likely exceed the cost of an extended warranty as explained by Korac above. Very good idea, especially on a laptop.