How An Appliance Extended Warranty Can Save You Money

Appliance extended warranties fill the gap between manufacturer warranties and wear-and-tear. These warranties typically cover a wider range of problems and last for years after the manufacturer’s warranty lapses. These warranties are a money-making product for the companies that offer them. Whether or not they are worth the cost depends on your needs and circumstances.

Peace Of Mind

An appliance extended warranty takes some of the risk out of purchasing and owning appliances, letting you know you won’t be hit with expensive repair bills if something goes wrong. In addition, warranties typically cover professional repairs so that you can get your appliances back in working order quickly. Keeping up with regular maintenance and addressing problems promptly prevents small issues from escalating into major ones, which can save you even more money in the long run.

However, not all warranty plans are created equal, so it’s important to choose one that offers quality customer support and comprehensive coverage. Make sure to read reviews and testimonials to find out if the warranty company is reputable. In addition, look for a warranty that covers both mechanical and electrical failures, and consider whether or not it’s transferable should you decide to sell your appliance in the future. The best option is to buy an extended warranty from a trusted third party, such as Consumer Priority Service.

Save Money

The appliances your parents and grandparents bought were built to last, but today’s models are breaking down more often than ever. Fortunately, appliance protection plans can save you money on repairs and replacements. Many retailers sell these service plans, which can cost up to 40% of the purchase price of an appliance. They are also called extended warranties, and they cover repairs beyond the manufacturer’s limited warranty period. Salespeople typically push these plans while customers are shopping.

But you should always consider the pros and cons of a warranty before adding it to your cart. The plans aren’t cheap, and there is a chance that you won’t use them. And some of them don’t include coverage for home systems, so you’ll need to find another provider for that type of protection. Also, many warranties come with a deductible that must be paid for each incident. That can add up quickly and negate any savings. Fortunately, some companies partially refund customers who don’t end up using their plans.

Save Time

When you’re shopping for appliances, it takes a lot of time to decide which ones are best for your home. Once you’ve made your purchase, salespeople may try to sell you a warranty to protect your new investment. A protection plan—also known as a service contract or extended warranty—extends the manufacturer’s warranty and adds other services like in-home service calls. It also usually has a flat up-front cost, so there are no monthly or annual premiums to pay. But is a protection plan worth the added expense? We crunched the numbers to see whether it makes sense for consumers. Here’s what we learned:

Get In-Home Service Calls

A manufacturer warranty typically comes standard with most major appliances. It may cover repair costs or replacements for a limited period of time. The best home warranty companies offer extended appliance warranties that provide longer periods of coverage for specific appliances. They also include more extensive parts and labor coverage. These plans also simplify appliance service calls. Rather than relying on Donny with his station wagon and a bunch of tools, you can work with an appliance repair company that has factory-trained technicians and a parts warehouse ready to go.

A manufacturer-backed plan may require that you follow a routine maintenance schedule or meet other requirements to keep your coverage valid. The best appliance warranty protection companies work with a network of local service providers to streamline the process for consumers. They can often schedule a repair service visit within two or three days of filing a claim. This is a huge benefit for busy homeowners.

Conclusion

Appliances are an essential part of your home, and they will need to be repaired from time to time. Many retailers and credit card issuers offer a variety of extended warranty plans. Adding an extended warranty, also known as a protection plan, to your purchase can save you money on repair costs. But is it worth it?