Extended Warranties For Appliances: Are They Worth It?

Home  >  Blog  > Extended Warranties For Appliances: Are They Worth It?

Extended Warranties For Appliances: Are They Worth It?

Whenever you purchase a new appliance, it often comes with a warranty. However, sometimes you may feel that the warranty period is too short. Some companies may offer an extended warranty for an additional cost. This leads us to the question: are extended warranties for appliances worth the extra expense?

Truth be told, an extended warranty is a worthwhile investment. After all, the warranty often covers the cost of repairing or replacing a defective product. You may consider yourself lucky if it breaks down just right after the original warranty period. With the extended warranty, you’re still covered.

But it’s also possible that your appliance will work fine even during the extended warranty period, so that means you paid extra without any actual benefits. That extra money could have been put to better use, right?

So how do you know whether to go for the extended warranty? Your decision should take into consideration several crucial factors:

Check the Manufacturer’s Warranty

You may be thinking about buying a warranty from another company when the manufacturer already offers one. If there is one and the extended warranty covers the same time period, then you obviously don’t need the redundant coverage. The new warranty may only be a bit longer than the manufacturer’s warranty, and that short extension may not be worth the price.

You also need to find out if the manufacturer is also offering an extended warranty. This may be a good option if you plan on buying it after the original warranty runs out so you don’t get double coverage.

See if Your Credit Card Offers Coverage

When you buy a new appliance using a single credit card, the credit card may provide coverage for appliance repairs as well as part of its bonus package. In fact, many people choose a credit card because they offer coverage for appliance repairs.

Do You Have a Home Warranty?

A home warranty may already cover the repair expenses for several major appliances. Check your home warranty contract and see if your new appliance is also covered. In many cases, a fridge may be covered but a second fridge may not be. See if the home warranty contract allows you to add the new appliance for coverage at a comparatively lower cost.

Make Sure the Extended Warranty is Appropriate

Do your research on when your new appliance tends to need repairs. If you find out that your particular brand of washing machine needs repairs in 10 years, then the original manufacturer’s warranty of 5 years won’t cut it. But buying an extended warranty for an extra 3 years won’t cut it either. It has to be for another extra 5 years (or more) in this case.

How Much Do the Repairs Cost?

The frequency and cost of the repairs will certainly be a factor in your computation. If during the extended warranty period you seldom need repairs and they only cost $20 or so, then you certainly don’t need the extended warranty. You may find out that you would have paid less by paying for the repairs yourself.

On the other hand, if the repairs are more likely to happen frequently and they can cost in the hundreds of dollars, the extended warranty period can prove to be a wise investment.

All in all, extended warranties for appliances can be great if there’s a great likelihood of expensive repairs. If you can’t get the extended warranty from the manufacturer, credit card, or home warranty, then you can get it from a company that offers an appropriate extension period.

Get Your Home Armor Protection Plan Today!

Never Worry About Home Repairs Again!