A recent survey found that 69% of people surveyed had at least 1 broken home appliance in the past 12 months. That same survey indicated that 35% of the 62% of people who repaired the appliance spent $300 or more to fix it. That means that just to fix 1 appliance costs a few hundred dollars.
The top items that become damaged are HVAC systems, plumbing systems, washer/dryers, refrigerators, and dishwashers. Purchasing an extended warranty for these and other much-used home appliances makes sense. Especially if you choose a good extended warranty that will keep covering problems for the entire term of the warranty (not just after the first claim).
Read on to learn everything you need to know about both the manufacturer and the appliance extended warranty.
Before you consider buying an extended warranty, be sure that you understand what the manufacturer covers before you buy.
Under federal law, retailers must show you the manufacturer’s warranty before you purchase the item. If you find the warranty lacking in some way, you might want to shop around for another brand that offers a better warranty.
Often the manufacturer’s appliance warranty covers anything that goes wrong with the appliance for a set period of time. Often that coverage is from the date of purchase for a total of 90 days up to 1 year.
This warranty will not cover damage due to improper installation, negligence, misuse, and rust. The warranty also doesn’t cover things like filters.
Typical exclusions are wear and tear on the exterior and interior of the unit, say if you put a ding in your stainless steel dishwasher or crack a fridge drawer because you put too much in there.
Yet, if the ice machine stops making ice on your refrigerator, the manufacturer will send out a technician to your home and repair or replace the broken part.
The problem with a manufacturer’s warranty is how short it is. The warranty is great if there is a defective part from the factory or if something goes wrong, early on. Yet, the majority of appliances won’t see a problem until after the manufacturer’s warranty coverage has ended.
Let’s say that you decide that your brand-new appliance is an investment you want to protect.
Chances are the sales rep at the store has told you about the extended warranty you can get for your gorgeous new French door smart refrigerator. That warranty might cost you anywhere from $49 to $200 and gives you up to 5 years of coverage.
The first thing you need to know is when does the coverage begin. Some extended appliance warranties start the day you purchase the item.
Yet, there is a needless overlap since all appliances have a manufacturer’s warranty. That means that your extended warranty is not really for 5 years. Hopefully, your extended warranty starts the day the manufacturer’s warranty expires.
Next, you need to find out who is providing you with the extended warranty. You can be sure it’s not the retail store where you purchased your new appliance. That means that when something goes wrong, all the store can do for you is give you the 1800 number you need to call.
Just because you live in Rochester and bought your new appliance there doesn’t mean that the extended warranty company is local. The warranty company could easily be thousands of miles away. This is certainly not a great situation.
Also, sometimes the warranty provider doesn’t fix appliances. They contract out the actual repairs to other local companies.
The problem here is that there is one more link in the communication chain that could cause you a major headache.
The repair guy might tell you one thing and then when you call the warranty company, they might say something different. It can be a back-and-forth nightmare.
It’s a good idea to read reviews about a warranty company before you purchase anything with them.
Once you know when the appliance extended warranty starts and who is providing it, you need to know what the warranty covers.
There is a big difference between various extended warranties. There could be a maximum amount that the warranty will cover. This number could be as high as the price you paid for the appliance or it could be disappointingly low.
Even though fine print is annoying, make sure you read all the terms and exclusions before you purchase an extended warranty. That way you know exactly what you are getting to avoid disappointment later on.
Your best bet to buying an extended warranty that won’t be a pain to deal with is to buy one from a company that fixes the appliances themselves.
That way you aren’t buying a warranty from a middleman and instead are dealing with the repair company yourself. This could save you money since there are fewer players involved.
The retail store, the repairman and the warranty company all make money from the sale of your extended warranty. And that cost comes out of your pocket. Whether by paying a higher price for the plan or by having a less comprehensive coverage plan.
We hope you found this article about buying an appliance extended warranty.
CPS offers warranties up to 5 years long after the manufacturer warranty expires. Plus, if we can’t fix it, we replace the item. That way you have peace of mind when you purchase a warranty with us.
Learn more about our extended warranties.