Wednesday, July 13, 2011

Who has the best service protection plan for NookColor eReader?

Almost all service protection plans are extremely overpriced. Remember, you're buying insurance, which is all about probabilities and payoffs. Paying $50 for a $250 product (that rapidly becomes obsolete) is placing a bet that it's more than 20% likely that you'll need to use the policy. The actually likelihood is probably less than 2%, so such plans are simply too overpriced.

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