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Well its a warranty plan. For example, buy this laptop for 460$ and buy the waranty for 70$. they say any problem you have within 3 years, or 2 years if used item, they will repair or reimburse your purchase.
i know that dell offers something like that and i wish i would have bought the extended warranty - i need a new sound card for my laptop and because its a laptop, everything is motherboard related and that is expensive stuff...but yeah, its worth looking into.