It’s almost natural for retailers to try selling you an extended warranty for kitchen appliances the next time you look for such an item. An extended warranty offers coverage beyond the length of the manufacturer’s warranty, an appealing prospect for customers who often get excited when buying expensive home appliances.
It’s like when you’re paying big for a home appliance; it’s hard not to be intrigued by an extended warranty sales pitch, even if it increases the total cost by a few thousand bucks. But one question to ask over here is, are extended warranties significant? Of course, they offer to cover the cost of repairing or replacing an item that manufacturer warranties don’t, but is it only a money-making scheme or worth the investment? Considering that manufacturer warranties usually cover an entire year, should you go for the extra coverage?
An extended warranty, in the end, is insurance.
An extended warranty or a service contract is like an insurance coverage you receive on your purchased product, typically sold by a retailer at the point of sales or by a third-party service provider in case of an online purchase. While the price of extended mobile insurance might seem like a bargain compared to the hefty cost of repairs, it is essential to read the terms and conditions before you invest in one.
What companies usually do is that they calculate the likelihood of your appliance repairs and then weigh it against the usual cost of repairs. And so, they offer you an extended warranty based on their probability metrics.
But do you need that insurance?
According to Consumer Reports, about 40% of new kitchen appliances will need repair in the first five years. The probability of repair required might vary from item to item. While some would call an extended warranty for kitchen appliances a marketing gimmick, others would call it a money saver. If you’re looking for mobile insurance, it is a good idea to look for kitchen brands that have a reputation for quality and minimize the risk associated with repairs. However, should you invest in an extended warranty for kitchen appliances, look for ones that offer the maximum value on your investment.
What comes with extended warranties?
All products come with a standard manufacturer’s warranty free of charge. The coverage of this warranty varies from 1-10 years of the product life. If your product has short warranty coverage, it is advisable to go for a service contract. However, you must read between the fine print lines as well before choosing mobile insurance.
What to look for in an extended warranty for kitchen appliances?
Should you decide to pay for an extended warranty, knowing what you’re getting is imperative. Here are some questions you must ask yourself before signing up for it.
- Is the product likely to need repairs?
- What does the mobile insurance agreement cover?
- What is the processing of receiving the claim?
- Is there anything deductible or fee-for-service?
- How reliable is this servicing company?
Extended warranties are a nice perk but check its complete profitability before investing your money.