Are Appliance Extended Warranty Worth It?
Reasons for Buying Appliance Extended Warranty
Introduction to appliance extended warranty and how it affects you as a buyer:
- Most appliances last up to 5-10 years. Since advancements in technology and the use of more electronic part and control boards appliances fail at a much faster rate.
- Repair parts are much more expensive.
- An extended warranty should pay for itself in just one service call.
Reasons For Not Buying Appliance Extended Warranties
- You may be purchasing insurance you already have. Most products you purchase will carry some type of manufacturer’s warranty. If your appliance purchase fails prematurely, this warranty usually covers your loss. If the manufacturer’s warranty has expired, you may be covered if you paid for your purchase with a credit card. Many (but not all) credit cards offer some form of warranty protection.
- The fine print can be costly. Most extended warranties come with pages of fine print which we never read. The companies that issue the extended warranties know that we don’t read their fine print.
However, they know exactly what the fine print says and this protects them. When a claim is filed, if there is anything in the fine print that will allow the company to avoid paying the claim or repairing the appliance, they will take advantage of it. You may find out that your purchase isn’t covered against whatever caused the damage.
Our conclusion is to consider a warranty on the most expensive products like your fridge, stove, washer & dryers (depending on the manufacturer). Most importantly, at least understand what the service warranty experience will be like after the sale before buying additional coverage.
Finally, ask many questions before the sale of your appliance, do your research for the online reviews and don’t fall into a trap of buying an extended warranty when the provider cannot resolve any warranty repair problems in a reasonable amount of time.