Laptop Limbo

1. Choose between "repair" or "replace." Some extended-service plans will only repair problems, some will immediately replace broken products, and many offer a combination of the two options. "Repair" contracts are usually cheaper but can leave you waiting for weeks for results. "Replacement" contracts cost more, but you can get a new unit shipped to you right away.

2. Read the entire extended-service contract. Something as simple as the wrong home address can result in the cancelation of your service contract without notice.

3. Assess the warranty's value. It might actually be a better deal to buy a used replacement than to spend money up front on a warranty.