Picture it: You're speaking with a salesperson at a major electronics chain about a hardware purchase, when he or she asks if you want an extended warranty or insurance to protect your baby from all sorts of scary things that can happen. It sounds appealing: Extra coverage is always a good thing, isn't it? In the case of some mobile electronics, the answer should be "no."
 
"In most cases, we couldn't recommend extended warranties to anyone," said Melissa Calabro, communications associate at Consumers Union. "Very few people will reap a benefit." According to Consumers Union, retailers don't push extended warranties because they're looking out for you; they sell them because they're a fast and easy way to make a buck.
 
According to Consumers Union, stores pocket at least 50 percent of what they charge for extended warranties, which makes them great profit generators--more so than the products they sell. An extended warranty is a no-win purchase in most circumstances for two reasons: Products rarely break down within the typical warranty period, and when they do, the cost of repair is often on par with the price of the warranty itself (which usually only covers faulty construction or wear and tear from typical use, not accidental damage).
 
If you're prone to dropping your cell phone in the toilet or bouncing a notebook down a flight of stairs, however, you may want insurance instead of an extended warranty, as it will cover your gear should a freak accident occur. Insurance will cost a monthly premium and a deductible, should you need to use the coverage (based on factors, such as the age of the device and your geographic location). Yet much like extended warranties, insurance may not be for everyone. Here's how the two protection options stack up in various product categories.

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