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How does smoking disable a Laptop?

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I disagree.
If the extended warranty covers shipping, its worth it, sending a laptop in shipping can cost a crap load of money and your responsible for it, if it arrives totally destroyed, the manufacturer will blame you. If you buy the stores warranty, you just hand it to them and let them deal with it.

I mailed in a hard drive for warranty once, cost 20 dollars to ship it from Winnipeg to Toronto. I only paid 75 for the drive itself.