Things tend to break down eventually. Even high-quality products eventually break down. It doesn't happen all the time, but when it does, it's a pain.
Thankfully, purchased goods come with limited warranties, typically around a full year. However, sometimes a year just isn't enough, especially when you've vested your hard earned cash into an expensive product. But, you always hope that things will be okay. More often than not, consumers feel that extended warranty plans are just a scam, a way for companies to pocket more money without actually offering anything back.
Warranties, like insurance, work on peace of mind and yes, fear. This is why extended warranty programs have such a stigma over them. When you buy an extended warranty and something does go wrong after the initial period vaporizes, you feel glad that you bought it. If nothing goes wrong, you feel money was taken from you for nothing in exchange--especially when some extended warranties can be very expensive.
I once witnessed a retail sales person sell a customer on a $25 "extended warranty" on a $30 camera lithium-ion battery. First of all, you can't sell warranties on batteries, and second, that was an outright scam.
The question of the day is: Do you buy extended warranties for your devices?