Is An Appliance Extended Warranty Really Worth It?

by John Eshan

Appliances and electronics often come with manufacturer warranties. Retailers offer extended warranty coverage as a money-making product. Statistically, appliances rarely break down after the manufacturers’ warranties expire. Even the ones that do typically require only minor repairs. It’s important to consider the pros and cons of buying an extended warranty before making a decision. Here are some of the most important points to keep in mind.

Peace Of Mind

While the cost of an appliance extended warranty can be steep, it can provide a peace of mind. Some warranty providers offer a flat, up-front fee for the entire length of coverage, making it easy to budget. Others charge monthly or annual premiums, which can add up quickly. A warranty also covers repair costs that aren’t covered by the manufacturer’s warranty, such as food spoilage or laundry service fees. In addition, many warranties allow customers to transfer the plan to a new owner with just a phone call.

It’s important to note that warranties from stores with their own service departments (such as Best Buy) generally have better customer service than those from companies that outsource their service. This is because these companies often have their own factory-authorized service technicians, who have access to the latest service bulletins and parts warehouses. The other option is to go with a third-party warranty insurer that contracts with local appliance repair experts.

Coverage Options

Purchasing an appliance extended warranty is one way to ensure that you will be covered when an expensive device breaks down. Many retailers offer warranties as add-ons at the time of purchase, while others sell them through third-party providers. The policies provided by these companies differ from those of the manufacturer, but are designed to protect you against large repair or replacement costs. Some warranties also offer additional perks, such as food spoilage compensation or free shipping. You may even be able to get back the money you paid for the plan if you don’t need it!

Keep in mind that the warranty plans offered by these companies are carefully calculated to be profitable, so they may not provide the full protection you expect. Keeping up with regular maintenance schedules is another way to protect your appliances. Homeowners can do this by contacting companies like CPS Central to arrange regular service check-ups. In addition, many credit cards offer extended warranty protections on qualifying purchases.


A protection plan or home appliance extended warranty can include a deductible, which you will be required to pay before the appliance repair company will cover the rest. This can add up to a significant amount, especially if you have multiple appliances that need to be repaired. These plans tend to have a lot of terms and conditions, so it’s important to read them carefully. They also may not cover all repairs or issues, and they often don’t cover parts that will wear out over time.

Ultimately, it’s best to buy high-quality appliances that are less likely to break down. You can also save money on repair costs by setting aside money each month for possible appliance repairs. However, if you want peace of mind and the added convenience of a service contract, an extended warranty might be worth it for you. Just keep in mind that it’s probably a money-making product for companies that sell them.

Fine Print

Whether purchased from the manufacturer or a third party, these protection plans usually pay for repair costs after your manufacturer’s warranty expires. They also offer a predictable monthly cost and a set term. Plus, they pair you with certified service technicians who specialize in your brand. This saves you the time and expense of searching for a local appliance repair tech on your own. It also ensures your technician has access to the best product support, the latest service bulletins, and a parts warehouse full of factory-approved replacement parts.

That said, the fine print is important to read carefully. These warranties often include extensive terms and conditions that spell out what is covered and what is not. Plus, they often have a maximum coverage limit so you will not be overpaying for repairs. Regardless, the bottom line is that appliances will break down, so it may be worth purchasing an extended warranty to minimize your financial risk.


Deciding whether an appliance extended warranty is worth it requires careful consideration of various factors, including the cost of the warranty, the appliance’s age, the likelihood of breakdowns, and your personal risk tolerance. While extended warranties can provide peace of mind and protection against unexpected repair costs, they may not always be cost-effective for every situation. It’s essential to assess your individual circumstances and the warranty terms to make an informed choice that aligns with your needs and budget.


Should I Buy An Extended Warranty For A Brand-New Appliance?

For brand-new appliances, the manufacturer’s warranty typically covers a certain period, during which defects and malfunctions are likely to be addressed. Assess the manufacturer’s warranty duration and coverage before purchasing an extended warranty. In some cases, the manufacturer’s warranty might provide sufficient protection, making an extended warranty less necessary.

Are There Alternatives To Extended Warranties For Appliance Protection?

Yes, there are alternatives to extended warranties. Some credit cards offer purchase protection, which can extend the manufacturer’s warranty for a limited time. Additionally, setting up an emergency fund dedicated to unexpected home repairs can provide financial security without the ongoing cost of a warranty. Regular maintenance and proper care of appliances can also help prevent breakdowns.

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