Home appliance Insurance cover
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I have just had to replace my washing machine, it was 12 years old so it had had a good life, my microwave has also recently given up the ghost - this is a relatively new machine (the 5th one that I have had in as many years - I know, I know but I don't mistreat them honestly!) My fridge freezer is 8 years old and I'm afraid that might be the next thing to go.
The extended warranty that I was quoted with the washing machine for 2 years (to make it into a 3 year warranty) was £210. I considered this to be very expensive and not worthwhile. That's another thing - they always say it's a 3 year warranty, but you get a year's one free anyway so in effect it is only 2 years - surely this is unethical.
My question is whether you think that purchasing the extented warranty with most products is worthwhile? Do you think that a separate appliance cover for 3 or 5 kitchen appliances is a better option? Do you have cover and if so what on, what do you pay and who supplies your cover?
Thank you.
Responses (3)
Oh my Vettriano ... what a beaut of a question to bring in 2011! And I have to agree, very much a 'hot potato' as well ( though not it seems from your own microwave! ). You are right about being offered, at cost, a five year warranty when the manufacturers own warranty is in place for the first twelve months. My understanding is that manufacturers have no legal responsibility to offer warranties but they do so to commit consumer confidence in their products. Of course that doesn't detract from the fact that everything has to be 'fit for purpose' within current consumer law.It all boils down to profit at the point of sale and is very much an insurance against things going wrong and therefore very much a risk on both sides. With the odds usually against the consumer, otherwise the shops would make no money out of it. And I have never got out of a checkout yet without being offered an 'extended warranty', like these people are actually doing me a favour! I currently have my dual fuel range cooker under ongoing insurance cover as it cost me some £1200 to buy and being something that I use daily, is probably the best home investment cost wise and therefore deserves cover should it go wrong. And it is some six years old. I took out extended warranty on my very first dishwasher many years ago and that broke down time after time with the end result that it was considered 'beyond economic repair' and they gave me a brand new one with a fresh warranty. Even the repair man became a good friend! So that is a case in support of extended warranties but I suggest a more isolated case.My understanding of all extended warranties are that they are insurance company led and all claims, while dealt with via the manufacturers and their agents, are paid for from the relevent insurance cover. I suggest that the option of taking extended warranties out is all about cost versus experience versus probability. You will be aware that extended warranties have received a 'bad press' over the past few years and as such are rarely recommended. And for good reason. As you say, £210 to extend a washing machine warranty to three years is to my mind, uneconomic madness. It is unreasonable to expect a new washing machine to give any trouble in the first five years, let alone three years. Conclusion? Instant profit for the warranty provider and better still, great commission earnt at the point of sale. Agreed, peace of mind would be great to have everything covered in this way but reasonably, very few of us have the means to fund it. I too, have a poor relation with my microwaves and one actually caught fire with a sheet of flame imploding the whole thing. In the end, that went to the Fire Service for 'incident education'. And I have a separate fridge and freezer, both about eight years old, that I am waiting to cast the last rites on.
Ah good point Vettriano.
I don't think many (not all) of these warranties are worth the paper they're printed on.
Why pay for nearly an extra third on the cost price of an item for only two and not three years extra cover that may not even be fully covered once you've fnally got through reading the small print.
I also know for a fact that the sales person is on commission to sell you that extra insurance so they aren't going to let you leave without the old hard sell.
Ultimately I don't like product warranties and whenever possible I seek an alternative either add it on to the household insurance or one of your utility maintainence covers.
Exactly.
Perfect answer actually - add it to household insurance - your credit card covers you as well until you get it home and some cover you for 3 months!
I get annoyed with the hard selling approach to these warranties, but if you keep saying 'no' they will offer you all sorts of things if you're dealing with a senior salesperson who has discretion to offer discounts, free delivery, etc.
Yes Feline this harks back to one of my previous posts re- haggling, I don't recall ever having to pay for a delivery yet.
I don't buy extended warranties for anything! I think they are a total waste of money! But I do spend time checking out the reviews of any home appliance before I buy, and try to buy reliable brands.
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Hi Snoopy48
Thanks for your comments. You would expect that a new washing machine would work well within it's first 5 years of life and definately within the first 3, but do you know what I was told? That if you get 5 years out of a new washing machine you are doing well!!!!! This from a salesman at Comet. And you are right - extended warrenties is always a hard sell, we felt like we had escaped with our lives in our hands, the sales lady all but chased us out of the store offering a month of free cover should anything happen over the Xmas/New Year period - on a brand new fresh out of the stock room washer/dyer (which incidently is covered anyway.......
If you buy quality you dont need a guarantee for 3 years.
Being an electronics engineer and computer geek i can tell you that tv's generally go wrong after 5 years , computers 3 years , washing machines and dishwashers etc around 3 years - also depends on how much you use them of course - warranties often cost more than the £60 it would cost to repair the appliance anyway.
My pal Davie laughs when customers add warranties to their computers or tv's where he works (Comet!).>;o)
If customers just read the reviews of products on the internet - believe me they are very useful - manufacturers blurbs and press statements are all lies and more lies - actual customer feedback is much more relevant/important.
In my experience if you buy Panasonic (Anything), Technics (Hifi), Yamaha (Hifi/Audio), Hitachi (Washing Machines), Toshiba you will never need a 3 year warranty.
As for computers - never buy branded get a local computer expert to build you one - I can build a pc you can get from HP or Dell at almost half the price and with a better specification. Warranty is nothing as it doesnt cover "user error" - ie when you format your disk or corrupt your Operating System because you browsed some...ahem...naughty website!!
Besides there are so many unemployed computer and elctronics engineers out there they will fix your PC for £15 an hour - Any pc can usually be repaired/upgraded in no more than 2 hours max!
Laptops are a different ballgame - very expensive to repair - £60 an hour and the parts are extortionate especially for Apple products so a warranty for a laptop is really essential as they are carried everywhere and dropped everywhere!!! If you want one buy Toshiba or Ibm/Lenovo - great products and survive well!
Snoopy thanks for sharing those comments, it was a great point raised by Vettriano and I personally have a strong grievance to these rip off policies.