Holiday Gift-Giving Advice: Creighton Professor Offers Tips for Purchasing Protection Plans for Electronics

William Duckworth, Ph.D.Associate Professor of Statistics, Data Science and AnalyticsPhone: (402) 280-2609[email protected] Phone, studio and Skype interviews available

Smart phones, tablets and other electronic items are sure to remain at the top of holiday wish lists this year. However, these expensive, yet fragile items are prone to accidental damage, and the slightest drop can make the hottest gadget as useful as a lump of coal. Consumers who purchase one of these items face a tough decision — whether or not to purchase a protection plan or extended warranty.

William Duckworth, associate professor of Statistics, Data Science, and Analytics in Creighton University’s Heider College of Business, has conducted extensive research on protection plans and can offer consumers tips and advice for evaluating plans and making informed decisions on when and what to buy. In 2012, Duckworth created the iPhone app “Warranty Consultant” to help guide consumers in purchasing protection plans.

Duckworth offers the following tips to help consumer evaluate whether a protection plan or extended warranty is right for them:

• Buy from a company you can trust. A protection plan is only as good as the company that stands behind it. Although most retailers put their brand on a protection plan, customer service and claims are usually handled by a different company. Look behind the curtain at what you’ll really be getting.

• Look for protection plans that cover all forms of accidents. Some plans simply extend the manufacturer’s warranty while others provide coverage for accidental damage and sometimes even loss and theft. Buy a plan that includes coverage for accidental damage.

• Don’t feel pressured into a purchase. If you’re given the option to buy a protection plan, but you’re given very little information about it, don’t feel pressured to make the decision to buy or not buy right away.

• Watch out for hidden deductibles. If you’re thinking of buying a protection plan for your cell phone, watch out for hidden deductibles. They’re more prevalent than you might think.

• Look at the big picture. Look for the best overall value in the device you’re buying and in the protection plan you’re considering. Finding the best value in a protection plan means considering coverage, value, ease of use, reputation and speed of service.