Educate yourself before buying extended warranty

— -- Manufacturers and retailers often suggest that paying extra for an extended warranty is buying peace of mind. But many consumer experts and shoppers say that's certainly not always the case.

Complaints about extended warranties tend to center on the cost, the coverage and the inconvenience.

"You're under a lot of pressure to buy them, because they're very profitable for the companies," says Jack Gillis, spokesman for the Consumer Federation of America.

Four things to remember about extended warranties and service contracts:

The repair may be free, but that doesn't mean it's hassle-free.

"If you pay for comprehensive protection, and your large flat-screen isn't working properly, would you really want to take down that bulky equipment on your own ... or 'help' a repair person lift each end of the TV so it can be analyzed and fixed?" asks Best Buy spokeswoman Paula Baldwin. "Of course not. That is why we schedule separate install and repair team personnel, since de-installing and re-installing a monitor off a mount may require a different skill set than the actual electronics repair."

It's not what a salesperson tells you; it's what's in the fine print.

Eager to earn a commission, a salesperson may say whatever it takes to sell the contracts. That's what Gay Pitz of Baltimore says happened when she paid $79.99 for an extended-service contract on a $500 Sony camera at Best Buy. She says she complained to ConsumerAffairs.com because the Best Buy salesperson "heavily recommended" the contract because "whatever happened ... short of losing it," the camera would be covered.