This has always been my way of describing AppleCare, but I'm just now realizing that I should really encourage as many people as possible to buy it. As long as there are a large number of AppleCare policies out there, Apple will be motivated to keep their quality levels high to avoid repair costs. As long as quality levels remain high, I don't need to pay the premium for AppleCare.I guess it depends on your risk tolerance and your ability to pay for an expensive repair if one is needed (much like any other insurance). I have been buying Apple computers (and now phones, tablets, and watches) since the mid 90s. I have never purchased Apple Care for any of them. The total amount I've spent on repairs that would have been covered by Apple Care over those years is far less than I would have spent if I'd have purchased Apple Care for everything. So I will continue to not buy it, and effectively self-insure. Will I regret that some day? Maybe. But thus far it has worked out very well for me.
Save yourself some money and purchase AppleCare from LA Computer., $139 for the iMac. That is who I purchase my AppleCare from. By the way, use a credit card that has warranty extension coverage and you can get a longer warranty. For instance, purchase with American Express and the warranty extends an extra year. AppleCare combined with American Express you can get a 4 year warranty on your iMac.
I'm always anxious to save money and had a look at the LA Computer site. They sell AppleCare for the iMac for $139, but the site states:
"This is not AppleCare+, This Model only does not cover accidental damage."
If you purchase an iMac directly from Apple, you are offered AppleCare+, which costs $169 but includes accidental damage coverage. I couldn't find any way to purchase AppleCare (not AppleCare+) directly from Apple.
I don't know if the accidental-damage coverage is worth $30.00, but it's good to know what you're buying.
How much do you typically end up losing on resale and purchase? I'm thinking probably a few hundred?