WILKES-BARRE, LUZERNE COUNTY -- Retailers get rich convincing you to buy warranties. But now consumers have a choice when it comes to protecting their purchases. A revolutionary, new service offers policies on appliances and electronics for a lot less than you'd pay in the store.

Consumer reporter Jeff Chirico doesn’t typically recommend folks buy warranties because he feels they're overpriced. But now squaretrade.com sells low-priced warranties with a protection policy you won't find in store warranties. Store warranties on appliances and electronics translate into almost pure profit for retailers and for a while left customers with no choice. Steve Abernethy of squaretrade.com says the $10 billion warranty industry is “absolutely broken."

Abernethy is an independent warranty company offering unprecedented protection on your purchases for almost half the price. Abernethy says "it's about 40% less than what they offer and secondly our service is built around wowing the customer."

Here's how it works --go to squaretrade.com --type in the item, price and date you bought it and pay a small fee. Ellen Hontz of Wilkes-Barre paid $10 for a 3-year cell phone warranty. When her phone broke after 2 months, she just emailed Square Trade. Hontz says "they responded within 3 days --told me to send the phone back and gave me a full refund -can't beat that."

Square Trade promises to fix your item or refund the cost in five days-- major retailers don't offer that. Abernethy says when you “buy something from Best Buy, Circuit City or Verizon Wireless, you get a refurbished item sent to you." Square Trade covers phones, computers and appliances -you name it.

Abernethy says "what we've created is a choice - a way to be a smart consumer." And that's refreshing for Ellen who's since purchased more warranties from Square Trade. She says "I won't buy anything on the internet or at a store without checking Square Trade."

Keep your receipt because if you file a claim you need to show proof of purchase. We should tell you we've never tried this, but most of what I've read and the folks I've spoken with are happy with Square Trade.