When Angie Randolph bought her home theatre system.  She never even
considered buying a warranty,  and she doesn't buy them for appliances
either.

Angie Randolph/ Homeowner  I don't know if I've been
lucky or what it is.  I've just never had any major problem with a 
major appliance where I feel like I need to buy a warranty for my next
purchase.
 
Andy Hutchins worked at a well known retailer selling
appliances and electronics.  He says his former employer had a code
name for warranties.  "In my experience selling warranties  the company I
worked for referred to it as cheese. I'm making money when I sell the
warranty.  That's when the money is made."

  In fact, Hutchins
says his paycheck would double if he sold a warranty with the product.  
Hutchins walked us around a home explaining his philosophy on
warranties starting with tv's.  A warranty for a TV like this would run
about $400 dollars.

Hutchins, the former salesman, says,
"Whatever is going to go wrong is going to go wrong in the first year. 
If you buy a  3 year service plan more than likely.. if it doesn't go
bad in first year it's going to be after that 3 years anyway."

But
if you can negotiate with the sales person to throw it in for free, by
in essence lowering the product price --- then by all means, Hutchins
says take that deal.   Many are willing to do so because remember, they
make more if you buy the warranty.

Stacy Case asks: "Should you get a warranty on a dishwasher?"
Hutchins
says, "The one thing you've got to consider on this,  it will cover the
parts.  It will cover the buttons,  but it's not going to cover them
coming out and pulling this dishwasher out.  That means one of two
things. If you have tile bumped up against dishwasher you have to take
countertop off to get the dishwasher out.  That's not included in a 
service plan or a warranty."

Bottom line, read the fine print if you do decide to buy.
As for refrigerator / freezers?

Hutchins
says, "Say this warranty is $100 on this refrigerator for 3 years.  The
first year is covered. The ice maker inside is $50 ice maker you can
replace yourself."  Hutchins says the same goes for washers and dryers. 
"Sales people are going to push that warranty on you because again
that's   how they're making their money and the warranty is 80% profit
for the company." 

By some estimates only 10 to 15 percent of customers ever end up needing the warranty.

Randolph says, "The way the economy is right now I say save your money.  Just take a chance." SAVING YOU MONEY: Warranties