Extended warranties on major home appliances; if you have ever purchased a new appliance, odds are you were offered the option of adding 1, 3, or even five years to your warranty period.
These additional warranties can be tricky. In the heat of the moment, when you are close to completing your purchase, possibly spending thousands on a new kitchen package, adding an extended warranty on your oven for a few hundred dollars may sound very appealing.
However, extended warranties are not always so cut and dried; their real value depends on a combination of factors. For example, when considering paying $300 for a 3-year extended warranty on a $1,000 range, think about how likely the appliance is to break within that period and how much oven repair in Burnaby would cost if it did.
What do You Get with an Extended Warranty?
An extended appliance warranty is essentially an insurance contract for a stated period. These provide continued coverage after your manufacturer’s warranty period has ended and are typically available for 2-to-5-year terms.
Warranties are intended to cover defects with the appliance; they will not cover damage because of misuse, accident, or other external factors. A common situation is an overstuffed freezer blocking vents and over-taxing your refrigerator condenser, leading to burnout. This type of repair would not be covered under an extended warranty because it’s not the result of an appliance malfunction.
Terms and conditions for extended warranties vary dramatically, and it’s imperative to read all the fine print. Extended warranties are also per individual appliance, even if you are buying a package, which can really add up when you consider how many major appliances are in the typical home.
What are the Benefits of an Extended Warranty?
Extended warranties are not without their advantages, especially for big-ticket items. You get:
People like warranties because they provide peace of mind that it will be covered under the policy if something unexpected were to happen with their new appliance. And if the appliance cannot be repaired, it is usually refunded or replaced.
As long as you purchase your warranty when you purchase your appliance, you have the flexibility to choose the term that best suits your needs. Other terms and conditions of the policy, however, are not amendable.
Extended warranties always come with professional repairs but may not get your choice of company. For example, if you need oven repair in Burnaby, the warranty provider may only offer you one or two options.
The cost of appliance repair in Burnaby can be highly variable. With an extended warranty, you pay the predetermined fee upfront and this covers repairs, regardless of the actual cost.
What are the Drawbacks of Buying an Extended Warranty?
Despite their popularity, most consumer watchdogs caution againstbuying into extended warranty plans for several reasons.
The biggest downside to extended warranties is the cost – they are not cheap. When evaluating extended coverage, consider the cost of the insurance versus the appliance’s cost and the cost of repairing that appliance. For example, the average cost of oven repair in Burnaby is about $150, while a 3-year extended warranty will cost at least twice that amount, if not more.
Today’s appliances are quite robust, and for most consumers, they will never use their extended warranty coverage. When you purchase a problematic machine, issues tend to pop up right away when the appliance is still covered under the manufacturer warranty. Otherwise, many new appliances can go several years problem-free, which would surpass the extended warranty period.
Another factor that many people forget when purchasing their appliances is the existing manufacturer warranty coverage and warranties provided by certain credit card companies. Before you sign up for an extended warranty, check the manufacturer’s warranty coverage as well as the coverage available through your credit card provider, which can often offer protection for up to 2 years, free of charge.
