Extended Warranties – Best Buy Protection Plan vs. Costco [Best Options Explained]

In most cases, when purchasing a new electronic, you will be offered an extended warranty for an additional fee.

In exchange for paying an additional fee, your new device will have a longer warranty period and broader coverage, according to the sales pitch.

When deciding where to buy your device, you may want to think about whether or not any extended warranties are available from the retailer.

Best Buy and Costco are two of the most popular places to shop for consumer electronics.

What is the difference between the two in terms of protection plans, and which one is the superior choice?

Is it better to get an extended warranty from Best Buy or Costco?

Best Buy provides warranty service through their Geek Squad, which is more expensive than other options. Costco is significantly less expensive, but you must ship your device out to be serviced, and you must pay a monthly fee for the monthly service as well. Aside from the price, the location of the nearest Best Buy or Costco is an important consideration.

Apart from that, there are numerous other differences between the two plans.

Take into consideration the specifics of what you will receive as part of your device’s protection plan before deciding where you will purchase your new device.

Protection Plan for the Best Buy

Best Buy’s protection plan will be incorporated into the Best Buy Totaltech membership plan starting in 2022.

This is an annual membership that provides coverage for all of the devices that you purchase through them while your membership is active.

If you plan to purchase a large number of devices, this configuration may be advantageous, as it may significantly reduce the cost of owning each device individually.

Expenses and Duration of the Warranty

The Best Buy Totaltech membership is $199.99 per year and provides up to 24 months of coverage from the date of purchase. It is available at Best Buy stores nationwide.

However, if you do not renew your membership after the first year, you will forfeit your coverage for the following year.

A single device will cost you an additional $400 if you want the full 24-month warranty, regardless of how many devices you want to cover under the warranty.

The warranty may be extended beyond the initial 24 months if you request it.

However, you will be required to pay an additional fee for each device that is kept for an extended period of time.

Is There a Deductible or a Copay for This Service?

The Best Buy Totaltech plan does come with a service fee, which is not included in the price.

While some warranty services charge a copay based on the amount of service required, the Best Buy protection is a one-time service fee based on the purchase price of the product covered.

The following is the current fee schedule, which is valid until 2022:

What Is Included in the Price?

It’s critical to understand exactly what is covered by a warranty, rather than simply trusting the word of a cashier or sales representative on the subject.

According to the Best Buy Protection terms for 2022, you’ll be covered for damage caused by the following:

• Materials or workmanship that is substandard
• Dust and dirt are part of everyday life.
• Overheating on the inside
• Power surges or fluctuations, including lightning, are not uncommon.
• Drops
• Submersion in liquid, including spills and complete submersion
• A battery that is incapable of retaining its charge
• Pixels that aren’t working properly (for TVs, computers, tablets, phones, cameras, and handheld gaming consoles).
• Accessories for cell phones that are brand new in the box.

Before covering the cost of the repair, Best Buy may require an explanation of the damage.

If you do not provide an explanation, you may lose your insurance coverage altogether.

Depending on your plan, Best Buy may repair your device, provide you with a comparable replacement, or provide you with a store credit toward the purchase of a new device equal to the original purchase price when you file a claim.

You are permitted to submit two claims per 12-month period for each device covered by your membership for which you have purchased a membership.

The Totaltech membership also includes access to technical support 24 hours a day, seven days a week.

This may allow you to get back up and running without having to take your device into a service centre for repairs.

What Isn’t Included in the Price?

Despite the fact that these plans appear to cover almost everything, there is some damage that the plan does not cover.

This includes the following:

• Cosmetic damage that has the potential to impair function.
• Theft or misplacing of property
• Natural disasters such as fire and flooding
• Use in a manner other than that specified by the manufacturer
• Contact with bodily fluids from humans or animals is prohibited.
• Anything that would normally be covered by another insurance policy, such as auto or homeowner’s insurance, is not covered by this policy.

Is it possible to transfer it?

Any person who is in lawful possession of the covered product, according to Best Buy, will be eligible for service.

The Totaltech membership plan, on the other hand, is non-transferable. Due to the fact that the extended warranty is tied to the membership, if you purchase a device as a gift or decide to sell your device while it is covered by the extended warranty, the warranty may not transfer.

In the event that you’re purchasing a gift, there are other warranty options available through Best Buy, such as Apple Care+ and Samsung Care.

What is the procedure for receiving service?

Obtaining service under the Totaltech Membership plan is less difficult than under the majority of other extended warranties.

You can bring your device into your local Best Buy store, and their Geek Squad department will take care of any service issues that arise in connection with the Best Buy protection.

Costco’s Insurance Protection Plan

Costco contracts with Allstate Protection Plans to manage their extended warranty programme.

Prior to Allstate’s acquisition of the company, this service was known as SquareTrade.

Expenses and Duration of the Warranty

All of the Allstate service plans available through Costco are valid for 24 months from the date of acquisition.

The cost of the coverage is determined by the type of device purchased and the price of the device.

Here is a sample of the current 2022 prices in the United States:

Is There a Deductible or a Copay for This Service?

Because the Allstate plans do not have any deductibles or copays, they are more affordable than many other extended warranty and protection plans available.

Their service centres will even cover the cost of shipping the product to and from their locations.

What Is Included in the Price?

The Costco Allstate protection plans provide extensive coverage at a reasonable price.

They will pay for damage caused by the following:

• Defects in the materials or the craftsmanship
• Button or port failure due to a defect or damage
• Overheating on the inside
• Dust 
• Humidity or condensation within the body
• When plugged into a surge protector, there are power surges.
• Battery that has been damaged or is no longer functional
• Pixels that aren’t working properly
• Drops and falls are a part of life.
• Liquids and spills are an issue.

What Isn’t Included in the Price?

There are some things that your device will not be covered for under the plan.

In order to determine whether you’re at risk of losing your coverage, it’s important to think about how you intend to use the device.

The following types of damage are not covered:

• Intentional harm is done.
• Devices that have been lost or stolen
• Any use that is not intended by the manufacturer is prohibited.
• exposure to a variety of environmental factors
• Add-on accessories are causing damage.
• Damage caused by accumulation of substances, such as hair and body oils
• Carelessness or a lack of diligence
• Cleaning that has not been done properly
• Use in an industrial, rental, or commercial setting
• Damage caused by viruses

Is it possible to transfer it?

It is possible to transfer the protection plan in the event that you give away or sell your device while it is still covered.

To transfer the plan, you must first contact the company at www.squaretrade.com and work through the transfer process with their assistance.

How Do You Go About Getting Repairs?

You begin by submitting a claim at www.squaretrade.com, which will begin the process.

The techs will then attempt to assist you in troubleshooting your problem remotely from their end.

The company will arrange for shipping to their service centre if this does not solve the problem.

They’ll decide how to proceed once they’ve received the information.

In the event of a device malfunctioning, the plan will cover repairs, as well as replacement or a refund of the device’s purchase price.