Extended Warranties: Best Buy or Costco?
For a single gadget, a Best Buy or Costco warranty decision usually lands on Costco. Costco adds a free second year of warranty to most electronics and gives you 90 days to return them.
Best Buy sells protection too, but it comes through a paid yearly membership. That pays off only if you buy several devices a year or want accident coverage and in store service.
Here is how the two stack up so you can pick fast.
The quick comparison
Prices and terms below are current as of 2026. Always confirm the latest details before you buy.
| Feature | Best Buy Total | Costco |
|---|---|---|
| Cost | About $200 a year | Free with membership |
| Extra coverage | Up to 2 years while a member | 2 year warranty on TVs, computers, appliances |
| Accidents (drops, spills) | Yes, included | Only with a paid Allstate plan |
| Returns | 60 days for members | 90 days on electronics |
| Service | In store Geek Squad | Phone support, ship for repair |
| Best for | Frequent tech buyers | One item, best value |
How Best Buy protection works
Best Buy folds its protection into a paid membership called My Best Buy Total. It runs about $200 a year.
While your membership is active, most things you buy at Best Buy get up to 24 months of protection at no extra charge. On Apple gear, that protection comes as AppleCare Plus instead.
The big catch is that the coverage is tied to the membership. If you stop paying, the protection ends, even on items you already bought.
The upsides are real, though. Coverage includes accidental damage like drops and spills, you get 24/7 Geek Squad tech support, and you take the device to a store instead of mailing it. For a closer look at that service, see our take on Best Buy vs the Apple Store for repairs.
How Costco protection works
Costco takes a different path, and for most buyers it is the cheaper one. It does not sell you a plan to get the basics.
On many electronics, like TVs, computers, and major appliances, Costco Concierge Services doubles the maker’s warranty to two full years from the purchase date. That happens automatically and costs nothing.
You also get Costco’s generous return window, which is 90 days on electronics. If the device disappoints in the first few months, you bring it back.
Costco does sell add on plans through Allstate for people who want more. An Allstate plan covers accidents and can extend coverage for years past the free two, but it is optional.
One thing to know: the free extension does not cover touchscreen tablets, so an iPad keeps only its standard warranty. It also handles defects, not drops. For accident protection you need that paid Allstate plan, and repairs usually mean shipping the device out.
Which should you choose?
Match the plan to how you shop.
Pick Costco if you are buying one item and want the best value. The free second year plus the long return window covers most people without spending a dime on a plan.
Pick Best Buy Total if you buy several devices a year, want accident coverage baked in, or prefer walking into a store for help. Spread across many purchases, the yearly fee can pay for itself.
Before either, check what the maker already gives you. Our guide on what an iPhone warranty covers shows how much free protection you may already have.
Frequently asked questions
Does Costco give a free extended warranty?
Yes. On many electronics, such as TVs and computers, Costco Concierge Services extends the manufacturer’s warranty to two years from purchase at no cost. It applies automatically, and you also get free lifetime tech support on those items. Touchscreen tablets are the main thing left out.
Is My Best Buy Total worth it?
It is worth it if you buy a lot of tech in a year or want accident coverage and in store service. For a single purchase, the roughly $200 yearly fee is hard to justify against Costco’s free coverage.
Does Costco cover accidental damage?
Not with the free extension, which covers defects and mechanical failure. For drops and spills, you need to buy an Allstate Protection Plan through Costco. For a similar Apple option, see whether you can get AppleCare through Verizon.
Do you keep Best Buy protection if you cancel the membership?
No. Best Buy Total protection lasts only while your membership is active. If you cancel, coverage ends, even on devices you bought earlier. Costco’s free extension stays with the item.