Manufacturer Warranties and Protection Plans

[DonchaJuana]

Perhaps I'm in the wrong forum (or the right one if these are indicative of service...), as this seems to be all customer complaints as far as I can see, but I had a couple of questions in regards to buying a protection plan for a mobile device.

1. What is covered by ADH? i.e. If i'm using it on a balcony and it falls (several stories instead of a few feet) is that covered? Standard falls aren't really problematic to anything except the hard drive and I'm assuming that at 30% of the device's cost, they wouldn't be trying to run this as a scam on people who think broken is broken and don't understand the value of each component.

2. What coverage is included? If the device breaks years from now and you no longer carry the product, the sales rep stated that I would be given a replacement or my money back. This raises two more questions

a. If I am given a refund, is it of the original purchase price? If I am given the value of the item at the time it breaks, (for this example we will say over two years) it will likely be below the ~30% of the original price which was paid for the plan and definitely will be worth less when in terms of present value of the original money.

b. If I am given a replacement, is it indexed to the items core functionality? For instance you would never consider giving a user a desktop to replace a laptop, but it is a slightly greyer area in relation to whether a tablet (whos applications are far different, though they are still in the same category on your website) is considered it's own category or if it would be replaced with a standard laptop which does not fulfill the same need.

The second part of questions two is particularly important, as it brings up the the question of whether I would bother to insure something usage specific but categorically vague like a tablet through you.

Basically this all boils down to the functional points of this question - Is this a wise investment such as insurance, or are you trying to scam people who think their computer runs on magic and believe the wages of the wizards needed to repair it may consist of strange reagents they may not be able to afford.

[AgentK]

You have some very good questions. I had many of the same myself before I purchased a PSP. I carefully read over both the BTP (Black Tie Protection) and PSP (Performance Service Plan) brochures.

1. If you look at the clause that covers "...accidental damages through handling..." it explicitly stipulates that anything that is not an "...act of God...". A fairly vague description but common throughout the IT industry. An example of an act of God would be, if your house is hit by lightning, which blows your circuit breaker, which causes a power spike, which fries the laptop.

 2. The majority of the time the computer is repaired rather than replaced. In fact unless you have had 3 repairs (This is known as a "No Lemon") it is at Best Buy's discretion  to determine which is a more viable solution.

2.a/b) The unit will be replaced with a "computer of equal or greater value" which is pro rated based on how old your computer is. However, they also have the ability to issue a voucher for the value of your computer (meaning you get to apply the cost against whichever system you choose)

Example: If I had a Dell Inspirion 1150 (P4 2.8 Ghz decent laptop 3 years ago) which was $950 brand new, which unfortunately suffers a catastrophic motherboard failure I would most likely receive in between $350 and $550 worth of computer.

In my honest opinion the ADH clause makes buying the BTP/PSP worth it. I know of no other insurance claim that covers negligent damages to electronics. However, I would like to inform you that repair turn around times can be quite long, their contract allows for a 21 day window of repair.

If you have any other questions, I'm here to help . 

[DonchaJuana]

Got all that, but the one question still remains, is a tablet considered a laptop or a tablet? Is a smart phone considered a PDA, a phone, or specifically a smart phone?

Answer this one and it's kudos time

[aethelwyn]

Quote

However, I would like to inform you that repair turn around times can be quite long, their contract allows for a 21 day window of repair.

End Quote

Whose contract with who?  What are the realistic ramifications of not meeting this time?

[AgentK]

Since when you are using a no lemon you will have a choice of several similarly specced computers you shouldn't have a problem recieving the same type of item. In my own personal experience, I once had a netbook, Acer (terrible quality) that was replaced under no lemon and I had 3 to choose from 2 of which were netbooks.

Not sure about the smart phones off hand but I'll check it out for you. I'm going to Best Buy later today in any case.

Message Edited by AgentK on 11-01-2008 04:58 AM

[AgentK]

Sorry, I should have read that over again. I speak of the contract of the BTP/PSP between you (the contractee) and Best Buy (the contractor). It stipulates within the brochure that you are entitled to an immediate replacement once the repair exceeds the 21 day period. However, I have never had to use this particular clause.

[John-BBY Community Connector]

Howdy DonchaJuana,

Welcome to the Forum!  I agree with AgentK that you ask excellent questions, which I’ll cover as you’ve asked them and then add any additional info.  You’re welcome to ask us any clarifying questions you like and we’ll do our best to make sure you get a good picture of Geek Squad® Black Tie Protection (GSBTP) coverage.

1.  Accidental Damage from Handling (ADH) covers any damage caused by day-to-day usage of the product.  This means drops and spills, but not full immersion in liquids, just for example.  So if your laptop falls off your desk or you spill soda on it while working, this will be covered; but if your laptop is immersed in your bathtub, this is not considered to be during normal usage.  Ultimately, our service centers make the final determination whether the damage is covered under the plan. As a point of clarification to AgentK’s response, power surge is covered under the plan.

2.  Because you’re purchasing a service plan, service will be provided during the lifetime of the plan whether Best Buy® continues to carry the product or not.  If the unit cannot be repaired, a replacement of comparable technology (not purchase price) will be provided.

2a.  Best Buy® provides a gift card for the original product’s replacement value based on comparable technology  , not to exceed the original purchase price.  Otherwise, original purchase price is not taken into consideration, nor is any manner of proration done as AgentK mentions.

2b.  Best Buy® always endeavors to offer a replacement as close to the original technology as possible.  Because the manufacturers often make changes in the feature sets of their products, an exact match is not always possible.  You may work with the representatives at your local store to make the best replacement selection possible.

As a further point of clarification to AgentK’s remarks, there is no contractual repair timeframe stipulated in the Terms and Conditions, or anywhere else.  Best Buy® completes repairs as quickly as possible on a first-in, first-out basis.  Understanding that our customers are inconvenienced by delays in completing repairs, if a repair goes on overlong (this is determined by us), Best Buy® may move to replace the unit instead of completing the repair.

Is it a wise investment?  It is always our hope that our customers enjoy their product for its entire useful lifetime without any issue at all.  However, we all know that life can intervene in that: children spill and drop, adults are occasionally clumsy, or the technology fails of its own accord due to defect or just everyday use.  After the manufacturer’s warranty has elapsed, the often expensive repairs to a device become the responsibility of the owner.  GSBTP allows our customers to be assured that they can continue to enjoy the products they purchase and without further charges during the lifetime of the plan.  In this way, I consider GSBTP a wise investment indeed!

The full Terms and Conditions of GSBTP can be reviewed at http://www.geeksquad.com/services/content.aspx?id=2019&menu_id=495 under “Disclaimers” at the bottom of the page.  Also, you will find some key differences between the manufacturer’s warranty and GSBTP coverage outlined here:  http://forums.bestbuy.com/bb/board/message?board.id=Warranties&thread.id=297.

I hope this helps!

[carlswa2]

Hi DonchaJuana, check out my post titled "Best Buy PSP Buyers Beware". This might give you some insight as to how "easy" it is to get Best Buy to replace your item with "comparable" technology.