A warranty is kind of like health insurance–you don’t known how much you need it until you do. Unfortunately, most shoppers don’t pay attention to warranties until it’s too late.

It’s important to have a good warranty because repair costs can run into the several hundreds of dollars. And cost can be just one part of a frustrating process to get a broken TV fixed. The experience can be so unpleasant, many just give up and buy a new TV.

That’s why a warranty should factor in to your buying decision. And it’s important to know that not all warranties are created equal. One of the first things you should note about a warranty is its length.

Most manufacturers offer a one-year parts and labor warranty. Some Sony HDTVs come with a three-year manufacturer’s warranty. Vizios come with a two year (for sets over 30 inches). Some stores will offer extended warranties, either for free (Costco) or for a substantial fee (Best Buy). Certain credit cards also extend warranties of products purchased with them.

Probably the most important thing to know about a warranty, and the hardest info to find out, is how and where the TV will be fixed. If it is under warranty, most manufacturers will pay to have a local repairman come to diagnose and fix your HDTV. This is more likely to be the case if you have a larger HDTV (bigger than 40 inches). If new parts are needed, the manufacturer will ship them to the repairman, who will install them.

Some manufacturers, like Westinghouse, will fix the TV for free, but will require you to send the TV in to one of their service centers. Shipping costs can run from $50-$200 depending on the size and packaging of your TV.

Extended Warranties

At the cash register, almost all stores will ask if you want to purchase an extended warranty for your HDTV. According to Consumer Reports, extended warranties are generally a waste of money, because:

• Some repairs are covered by the standard manufacturer warranty that comes with the product.
• Products seldom break within the extended-warranty window—after the standard warranty has expired but within the typical two to three years of purchase—our data show.
• When electronics and appliances do break, the repairs, on average, cost about the same as an extended warranty.

Extended warranties are only recommended for individual products that are known for breaking down, and only then when the warranty is cheap and repair costs high. Generally, modern brand-name HDTVs don’t fit this profile. In fact, Consumer Reports found that only 3% of its HDTV owners required repairs for their sets.

The Repair Process

Just because your broken HDTV is under warranty doesn’t mean you won’t have any headaches. The Internet is full of nightmare stories of repairs taking months, and the parts used to fix the television having the same problems as before. If your TV breaks down, you should be prepared to be without a television for a while unless you can get a loaner or have an extra one.

Helpful Links:

LCD Buying Guide: Summary of manufacturer’s warranties

Consumer Reports “Why You Don’t Need an Extended Warranty“

When you set out to buy an HDTV, it’s unlikely you’ll start by researching the store you’ll buy it from. But buying from the right store can be important, especially for getting a fair price or returning the TV in case something goes wrong.

When I eventually settled on the Vizio GV47LF for my HDTV, I noted it was available at Costco. As I began to work out the mechanics of purchasing the TV, I realized that you had to have a membership to shop there. $50 for the right to buy my HDTV? Suddenly, I wasn’t so sure that was the television I wanted.

However, with a little research, I realized that even with the $50 fee, the HDTV was too good a bargain to pass up. In the end, I was very happy buying the TV from Costco, as Costco offers many advantages over other big box stores, the biggest being their liberal 90-day return policy and 2-year extended warranty.

Membership

Yes, you need to have a membership to shop at a Costco retail store. When I bought my television last year, I found that the bargain cost of the television justified paying the membership fee. But there were bonus ways to save some money. Costco offers 2% cash back for “executive members.”

There are two tiers of membership. Regular membership costs $50 and you get no cash back. Executive is $100, and you get 2% cash back. If you buy a $2,000 television, you will get $40 cash back, which essentially pays for the upgrade to Executive. Plus, the 2% continues for future purchases. I did not know about this policy and had the regular membership at checkout, but the Costco cashier was paying attention and helped me upgrade.

I just got my check from Costco from the 2% cash back and was happy enough to renew my membership for another year.

Costco also offers an American Express credit card that saves you an additional 1%.  The last thing you probably need is another credit card, but I mention this because Costco does not take any other credit cards except this one. Otherwise, you have to pay with cash or checks.

Return Policy

Another advantage of buying an HDTV at Costco is that they offer a 90-day return policy. That gives you three months to decide if you like the television.

I was originally concerned that my 47-inch HDTV would be too big for my one-bedroom apartment (it wasn’t), or that once I got it home, I wouldn’t think high definition television was enough of an upgrade to justify the cost (it was). I felt better knowing that I had three months to return it and get a full refund (no restocking fee).

The three months are also good in case you stumble across another television you like better. I don’t know of any other stores that give you this much time to return your TV. The 90-day return policy is a big advantage over Circuit City’s and Best Buy’s 30-day return policy.

Price Guarantee

Costco has no official price guarantee policy, but essentially, their return policy is the price guarantee.

If the price of your TV drops by $200 a month after you bought it, you can ask for the difference or return the TV for a full refund then buy it again for the lower price. I’ve read that usually you can talk them into the credit, but again, it’s not their official policy, so you might have to actually return the TV (although I really can’t see that happening). So the 90-day return policy can be seen as a 90-day price guarantee policy.

Price Match

Costco does not price match.

Extended Warranty

Coscto also extends the warranties on televisions to two years from the date of purchase. I haven’t had my Vizio conk out on me, but it’s still nice to know it’s still covered in case it does. Best Buy charges for their extended warranty.

Other Good Stuff

Costco has a concierge service that offers free technical support over the phone if you have any questions about your television.

They also offer an in-house set up of your television (except for wall mounting) for $89.99. The set up includes a crew of 2 to deliver and unpack your television, assembly of an attachable base (but not a television stand), programming of up to two remotes, integration of TV into existing home theater system, stringing of wires up to 15 feet (surface stringing only), a 15-minute demonstration on how to use your equipment, clean up, and packaging removal.

Costco sometimes has coupons that can take hundreds of dollars off the price. Costco coupon booklets come in the mail for members, but you can usually discover the latest coupons through minimum research online or pick them up at the store. I also check out the FatWallet.com forums for deals at Costco that are sometimes localized or not announced.

Conclusion

Costco may seem somewhat impersonal when entering the store; the place is huge, and there are no hovering salesmen in the electronics department. However, I am someone who appreciates being left alone to browse the TVs, as I do all the research myself before entering the store (and so should you). The perks gained from the membership fee more than make up for the cost; a lot of peace of mind comes from the 90-day return policy and extended warranty. It comes down to Costco having the HDTV you want. If it does, don’t let the membership fee throw you off, it’s worth it. Besides, where else can you buy a gallon jar of mayonnaise along with your HDTV?