My tivo premiere died while I still had a few months left on my initial 2 year service contract. I called tivo to see if I could switch my service to a new box, but they told me they would replace the old one for $49. They offered me a refurb for that price, but I asked for a new one and they gave it to me for the same price! With the new box I am only obligated to finish out the last few months on my contract, and then I can pay month to month at the lower rate.
I just wanted to make sure other people in the same situation know about this, because I had planned to just buy a new tivo (with its obligatory one-year contract), and was worried I might even have to pay out the rest of my old contract in addition to the new one!
The only hitch with the exchange policy is that you need to send your old tivo back. You can do that first and then wait for it to process before they send your new box out, or you can pay a $99 deposit and they will ship your new one immediately and credit your money back when they receive your old box. Either way, they send you a prepaid shipping label.