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After purchasing your new refrigerator, washing machine, or oven, your retailer might try to convince you to buy one more thing—an extended warranty for your new appliance. Typically, an extended warranty on appliances provides additional coverage, extending past the original manufacturer’s warranty. Thus, they tend to be more appealing to many customers who buy expensive appliances—after all, why not spend a few hundred dollars to cover my costly appliance?
But is it worth getting an extended warranty for your appliances? With that said, it’s important to make sure that you consider the cost of the extended warranty against the benefits you are getting from it. In this post, we shall discuss the pros and cons of an extended warranty on appliances to help you understand whether it’s worth getting one for your appliance.
What does an extended warranty on appliances cover?
An extended warranty on appliances usually covers repairs and replacements not covered by the original manufacturer’s warranty. As mentioned, the length of coverage is typically longer than the manufacturer’s warranty—anywhere from one to five years. In some cases, the retailer might offer an extended warranty that covers labor costs in addition to parts. So, if your refrigerator breaks down and needs repairs, the labor cost would included in the coverage.
However, it’s important to keep in mind that most extended warranties have exclusions. For instance, many plans do not cover damage caused by normal wear and tear, accidents, or intentional abuse. So, before you purchase an extended warranty, make sure to read the fine print so that you are aware of what is and is not covered.
Pros of an Extended Warranty on Appliances
Provides additional peace of mind
The main reason why many people opt for an extended warranty on their appliances is for the additional peace of mind. With an extended warranty in place, you don’t have to worry about repair or replacement costs if your appliance breaks down—the plan will cover it.
Covers repairs that not covered by the manufacturer’s warranty
An extended warranty on appliances usually covers repairs that are not included in the original manufacturer’s warranty. So, if your appliance breaks down and needs repairs, the cost would be covered by the extended warranty.
Lengthens the life of your appliance
Another benefit of having an extended warranty is that it can help to lengthen the life of your appliance. With coverage for repairs and replacements, you don’t have to worry about costly repairs or replacements that might otherwise cause you to replace your appliance prematurely.
It can save you money in the long run
Although an extended warranty might seem like a costly investment at first. It can actually save you money in the long run. For instance, if you need to replace your refrigerator because it broke down and the replacement cost was more than the cost of the extended warranty, you would have saved money.
Cons of an Extended Warranty on Appliances
It might not be worth the cost
One downside to extended warranties is that they can be costly—especially if you need to use them. For example, if your appliance breaks down and needs repairs and the cost of repairs is more than the cost of the extended warranty, you would have to pay out-of-pocket for the repairs. So, it’s important to consider whether or not you think extended warranty costs are worth it.
It might not cover all costs
As we mentioned, most extended warranties come with exclusions. So, before you purchase one, make sure to read the fine print to know what is and is not covered.
It can be difficult to cancel
If you no longer want your extended warranty, it can be difficult to cancel it. In some cases, you might have to pay a cancellation fee. Also, if you cancel within a certain period of time after purchasing the warranty. You might not be refunded for the full cost of the coverage.
It might not cover “pre-existing” conditions
Another downside to extended warranties is that they might not cover “pre-existing” conditions, which existed before you purchased the warranty. So, if your appliance breaks down and needs repairs and it’s determined that the cause of the problem was a pre-existing condition. You would have to pay for the repairs out-of-pocket.
It might not be transferable
If you sell your appliance, the extended warranty might not be transferable to the new owner. So, if you think you might sell your appliance at some point. Keep this in mind before you purchase an extended warranty.
Important considerations to make before purchasing an extended warranty on appliances
- Read the fine print – as we mentioned, it’s important to read the fine print before purchasing an extended warranty on your appliance. This way, you’ll know what is and isn’t covered by the warranty.
- Consider the cost – another important consideration to make is the extended warranty cost. In some cases, the warranty cost might be more than the cost of repairs or replacement. So, you’ll need to decide if you think the costs are worth it.
- Consider the length of the warranty – when you’re considering purchasing an extended warranty, also think about the length of the warranty. You might only be covered for a certain amount of time or a specific number of repairs or replacements.
- Decide if it’s transferable – if you sell your appliance, you’ll need to decide if the extended warranty is transferable to the new owner.
Bottom Line
According to the experts from Tampa appliance repair, Hartman. An extended warranty on appliances can provide peace of mind and coverage for repairs and replacements. However, it’s important to consider the cost of the warranty and whether or not you think it’s worth it. Before you purchase an extended warranty, make sure to read the fine print to know what is and is not covered.