When people go out to buy a laptop, most retailers and online shops will offer extended warranty.  Some of these extended warranties include repair and replacement for owner negligence such as dropping the laptop on the floor, leaving it in the cold, and other careless acts that damage the laptop.  They are a good option if the cost of replacing the notebook is “a lot of money” to you.  Just a word of warning though - read the fine print.

It is very important that you read the details of your extended warranty - some are better than others.  Also, some have clauses or limitations on what they cover, and some have limitations on the number of claims you can make before the warranty is void.

If you get the extended warranty from the manufacturer of your notebook, what usually do is extend the base warranty - that is they will repair the notebook due to hardware failure in the time that you purchased the warranty.  Also, this type of warranty adds to your existing warranty, so if you were to purchase two years extended warranty from the manufacturer, your total warranty would be three years if the base warranty covered the laptop for a year.

Retailers on the other hand offer different types of extended warranties: some increase your coverage on the manufacturers warranty (replacement instead of repair), some extend the base warranty (similar to the manufacturers extended warranty), and some offer full replacement for the term that you purchase.  Make very sure to read how the warranty you purchase works, also the terms in which the warranty applies.  I know that one local retailer in my home town (which is a large national chain here in Canada) tries to get you to purchase extended warranty on any computer they sell.  The catch with their extended warranty is this:  it is a one time replacement.  The worst part is that if your one time is for example used on day 15 that you own the laptop and it breaks again : too bad for you.

So, make sure you take the time to see what you are getting into by buying extended warranty on your notebook or laptop: it may save you from a nasty surprise later on.