When buying a new appliance, you’ll often be offered an extended warranty that provides additional coverage beyond the standard manufacturer’s warranty. But are extended warranties really worth the extra cost? There are pros and cons to consider when deciding if an extended warranty makes sense for your appliance purchase.
What is an Appliance Extended Warranty?
An extended warranty, sometimes called a protection plan, is an optional extra service contract that you can purchase when buying an appliance. It extends the coverage offered by the manufacturer’s warranty for an additional period of time, usually 1-3 years.
Extended warranties are offered by retailers and third-party warranty companies. They provide repairs and replacements if your appliance breaks down due to normal wear and tear or defects after the standard warranty expires. Some extended warranties also cover additional services like food spoilage reimbursement for refrigerators.
Key Features of Appliance Extended Warranties
- Length of Coverage: Typically 1-3 years of extra coverage beyond the standard 1-year manufacturer’s warranty. Some plans offer up to 5 years total.
- Repair Costs: Covers parts and labor for covered breakdowns and malfunctions after standard warranty expires.
- Replacements: Will replace the appliance if it can’t be repaired. Replacement models may be refurbished.
- On-Site Service: Many plans offer in-home service calls so appliances don’t need to be hauled to a repair center.
- No Lemon Guarantee: If the appliance has multiple breakdowns and can’t be fixed, the extended warranty provider will replace it.
- Power Surge Protection: Covers electrical damage from power surges and spikes. Not included on all plans.
- Food Spoilage: Some plans reimburse you for food lost due to a covered refrigerator or freezer breakdown. Up to $500 per incident.
- Accidental Damage: Not typically included, but some plans cover drops, spills, locks, etc. Usually an extra fee.
- Cancelable: Most extended warranties can be canceled for a pro-rated refund if you sell the appliance or don’t want the coverage anymore.
Pros of Buying an Extended Appliance Warranty
Purchasing an extended warranty for your new refrigerator, washer, TV, or other appliance comes with several potential benefits:
Provides Peace of Mind
The top advantage of an extended warranty is the peace of mind knowing you’ll be covered if the appliance breaks down after the standard warranty runs out. You can avoid the cost and hassle of repairs.
May Cover Expensive Repairs
Appliance repairs can be expensive, often $200-$500+ for parts and labor. An extended warranty covers the cost for you, often with no deductible. This can help avoid big repair bills down the road.
Convenient Service Calls
Many extended warranties allow you to get service calls free of charge. Trained professionals will come to your home to diagnose issues and complete repairs when needed. This is more convenient than having to take the appliance to a service center yourself.
Reimbursement for Food Spoilage
If the failure of a refrigerator or freezer is covered, some extended warranties provide reimbursement for food loss, often up to $500 per incident. This can help recover the cost of spoiled food.
Allows for Replacement Instead of Repair
With an extended warranty, if your appliance can’t be reliably fixed after several attempts, companies will replace it. You get a new appliance without the cost of buying one.
Coverage for Power Surges
Power surges and electrical damage aren’t covered under standard warranties. Extended warranties that include surge protection can cover expensive control board replacements.
May Increase Resale Value
Having an extended warranty along with the paperwork and owner’s manual may help boost resale value of an appliance you want to sell or trade-in. This provides added coverage for the next owner.
Cons of Buying an Extended Appliance Warranty
While extended warranties have benefits, there are also some potential drawbacks to consider:
Adds to Purchase Price
Extended warranties come with an extra cost, usually $50-$500 depending on the plan, which increases the total purchase price. Basic coverage might start around $100.
May Not Be Used
There’s a chance you won’t end up needing to use the extended warranty if you don’t experience any major breakdowns. Some see warranties as offering “peace of mind” rather than tangible value.
Coverage Limitations
Not all parts and services are covered, and there are often limits to food spoilage reimbursement. Make sure to read the fine print to understand exclusions.
May Still Have Service Fees
Even with an extended warranty, you might need to pay trip charges for in-home service or shipping fees to send parts for repair. There can also be deductibles per service call.
Refurbished Replacements
If providing a full replacement, extended warranty companies often supply factory refurbished appliances, which may not be new.
Retailer May Go Out of Business
If you purchase a retailer-specific extended warranty, there’s a chance the retailer could go out of business, leaving you without coverage.
Transfer Process Can Be Difficult
Extended warranties from third-parties are sometimes transferable to a new owner, but the process can be difficult compared to manufacturer warranties.
Doesn’t Cover Improper Installation or Use
Any damage caused by improper installation, use, negligence or modifications may not be covered under an extended warranty.
What Does a Manufacturer’s Warranty Cover?
Before considering extending coverage with an aftermarket warranty, it’s important to understand what is included in the standard manufacturer’s warranty that comes with your new appliance:
Length of Coverage
Many major appliances have a 1-year manufacturer’s warranty covering parts and labor. Some brands provide 2-3 years on the whole appliance or longer on certain parts like the compressor.
Repairs and Replacements
The manufacturer provides free repairs and replacements for defects in materials or workmanship during the standard warranty period. If unable to repair, they’ll offer the same or comparable replacement model.
Labor, Parts, and Shipping
Manufacturer warranties cover the cost of service calls, replacement parts, and shipping of parts to and from an authorized service center when needed under the warranty.
In-Home and Carry-In Service
Manufacturers offer in-home service for large appliances like refrigerators, washers, and stoves. For smaller items like microwaves, you’ll likely need to bring it in to an authorized service center.
Food Loss Coverage
Standard warranties typically don’t include coverage for food loss from appliances. However, some do provide reimbursement similar to extended warranties. It’s wise to check.
Power Surge Protection
Like extended warranties, damage from power fluctuations and electrical issues usually isn’t covered under the manufacturer’s basic warranty.
Examples of Exclusions
Standard warranties won’t cover improper installation, commercial use, accidents, damage from pests, or normal wear parts like filters. Warranty is void if anyone other than authorized service agents work on the appliance.
What Should an Extended Appliance Warranty Cover?
When reviewing extended warranties, look for plans that provide comprehensive protection including:
- Repair costs for parts, labor, and diagnostic fees after manufacturer’s warranty expires
- Replacement appliance if repair attempts are unsuccessful
- Shipping fees for sending replacement parts or the appliance to/from repair center
- In-home service calls so appliances don’t need to be transported for repair
- Coverage for spoilage of refrigerated or frozen goods due to breakdowns
- Surge protection for electrical component damage from power issues
- Cancelable contract with prorated partial refund option
- Transferable contract to new owner if appliance is sold
- Nationwide network of trusted service technicians to perform repairs
- No deductibles on covered repairs and replacements
- No lemon clause for full replacement if multiple repair attempts fail
Avoid plans with low payout limits for food spoilage and other major exclusions. Also compare costs on plans from retailers/manufacturers and third parties.
What Types of Appliances Usually Require Extended Warranties?
Extended warranties tend to provide the best value for certain higher-end appliances that are expensive to repair and prone to issues over time:
Refrigerators
With lots of moving components and cooling systems, refrigerators are susceptible to breakdowns outside the normal 1-year period. Replacement parts can be very costly without warranty coverage.
Dishwashers
From control boards to pumps and valves, dishwasher repairs often run over $200. Extended protection helps when the initial warranty runs out.
Gas Ranges
With both gas and electrical systems, today’s gas ranges have plenty that can go wrong. Extended coverage provides peace of mind for a longer period.
Wall Ovens
Wall ovens can develop issues with heating elements, electronics, and moving components. Expensive control board replacements make extended warranties useful.
Washer/Dryers
With heavy vibration and usage, washer/dryers see plenty of wear over time. Breakdowns after initial warranty requires pricey repairs.
High-End Appliances
Luxury, built-in, or professional models from brands like Viking, Sub-Zero, and Thermador are pricier to fix, so extending coverage provides added protection.
What Appliances May Not Need Extended Warranties?
For certain appliances, an extended warranty may not be worth the extra investment:
Microwaves
Microwave repairs are typically inexpensive even out of warranty. Their simple designs don’t often result in major failures.
Countertop Appliances
Smaller countertop ovens, instant pots, air fryers, etc. have low repair costs so added coverage rarely pays off.
Refrigerators Under $800
Basic affordable refrigerators have lower repair rates and costs that may not justify extended warranties.
Dishwashers Under $500
Entry-level dishwasher models have less complexity and electronics, resulting in fewer issues out of warranty.
Portable AC Units
Window and portable ACs have limited components that don’t require frequent repairs, so added coverage offers minimal value.
Used Appliances
Purchasing extended warranties for already used appliances with uncertain histories often doesn’t pay off.
Short Lifespan Appliances
For appliances only expected to last 2-3 years like garbage disposals, added coverage isn’t typically recommended.
What Brands Have the Best Appliance Warranties?
When comparing different appliance brands’ standard and extended warranty options, a few top brands stand out for their comprehensive coverage:
- Miele – Offers up to 5 years warranty coverage with some of the best extended service plans available.
- LG – Provides generous 1-10 year manufacturer warranties on different components. Also has solid extended coverage options.
- Samsung – Long 1-20 year warranties on appliance components, plus several extended plan choices.
- GE Appliances – Backed by solid 1-5 year warranties and extended plans through GE brand or independent providers.
- Bosch – Leading extended warranties with add-on plans from Bosch or other reputable insurers.
- Whirlpool – Typically offers 1 year warranties, but high-quality extended plans are available for added coverage.
- Maytag – Parent company Whirlpool gives appliance good warranty options, plus additional extended plans.
- Sub-Zero – Known for 2-12 year manufacturer warranties and comprehensive extended coverage programs.
- Viking – Provides 1-5 year warranties on different appliance parts, along with reputable extended plan options.
What Voids an Appliance’s Warranty Coverage?
While manufacturers and extended warranty providers aim to offer comprehensive protection for appliances, there are certain circumstances that can void your coverage:
Improper Installation
If an appliance is not installed properly according to specifications, any resulting damage will not be covered under warranty.
Commercial or Rental Usage
Most warranties only cover private home usage. Commercial or rental property usage often voids coverage.
Unauthorized Service
Any service on an appliance performed by anyone other than authorized providers specified by manufacturer will typically void warranties.
Altered or Removed Serial Numbers
Tampering with or removing the appliance’s serial number label will void coverage since this number is used to track warranty status.
Misuse and Abuse
Using the appliance other than intended or abuse/damage by the owner that affects function voids the warranty. This includes damage from pets or pests.
Natural Disasters
Damage resulting from natural causes like floods, earthquakes, storms, and power surges typically isn’t covered under warranties.
Improper Maintenance
Failure to properly maintain the appliance according to the user manual can void warranty coverage. This includes things like cleaning and replacing filters.
Power Grid Issues
While warranties cover defects in materials and workmanship, they won’t cover problems stemming from insufficient power supply or faults with your home’s electrical systems.
Resale by Unauthorized Dealers
Appliance warranties are only valid through authorized retailers. Purchases through unauthorized resellers often void warranty eligibility.
Do I Need to Buy an Extended Warranty from the Same Retailer Where I Purchase my Appliance?
Purchasing an extended warranty from the retailer where you buy the appliance is convenient, but third party warranty providers often offer comparable or better coverage at lower prices, so it pays to shop around.
You do not need to buy the extended warranty from the same retailer that sold you the appliance. In fact, third party warranty providers can sometimes offer better coverage at lower cost. Here are a few tips on shopping for extended warranties:
- Compare plan costs and coverage from the retailer, manufacturer, and third party warranty companies. Get quotes online or by phone before purchasing the appliance.
- Look for third party warranty providers that offer longer terms, lower deductibles, transferable contracts, and allow you to use any licensed service technician for repairs.
- Seek out reputable third party providers with a solid history covering claims across the US, like Asurion or Allstate. Avoid “ghost” warranty companies that may go out of business.
- Make sure any third party plans are backed by insurance from legitimate underwriters like AmTrust or Wesco to ensure claims will be paid.
- Consider purchasing just the basic retailer plan if offered for free, then upgrade to a better third party plan for lower added cost.
With some smart shopping, you can often buy the appliance itself at one retailer and get better extended warranty pricing from a third party provider or seller. This allows you to take advantage of sales and get the best warranty deal. Just be sure to purchase the extended coverage within the retailer’s deadline.
My Appliance Already Has a 1-Year Warranty, so Should I Buy the Extended Warranty?
If your new appliance comes with a manufacturer’s warranty providing 1 year of coverage for defects and repairs, an extended warranty may feel unnecessary. But there are a few key factors to consider before deciding:
How long will you own the appliance?
If you plan to own it 5+ years and the warranty only covers 1-2 years, an extended plan protects you in those later years when breakdowns happen more often.
What’s the typical lifespan of this appliance?
Research your specific model to see if it should reliably last 5-10 years or longer. If so, an extended warranty covering years 2-5 could be beneficial.
How expensive is the appliance?
The higher the original purchase price, the more value an extended warranty provides by covering costly repairs.
How much does the extended warranty cost?
Look at the price as a percentage of the total appliance cost. If it’s 10% or less of the purchase price, it may be reasonable.
What’s covered in the manufacturer’s warranty?
Review what types of breakdowns and services aren’t covered under the standard 1-year warranty that would be covered by extending it.
Does the appliance have expensive parts/repairs?
Modern appliances are complex, with control boards, sensors, touchscreens and other costly components. Extended coverage is appealing for these types of repairs.
What do reviews say about reliability?
Check reviews and see what percentage of owners report issues starting after year 1. More reports of problems may justify extended protection.
Even with a standard 1-year manufacturer’s warranty provided, purchasing an extended protection plan can still prove valuable if you plan to own the appliance for more than a couple years. Weigh the above factors to make the right choice for your situation.
Should I Buy an Extended Warranty on a High-End Sub-Zero Refrigerator?
Sub-Zero refrigerators are premium professional-grade models with prices from $7,000 up to over $15,000. With higher cost comes more sophisticated technology prone to expensive repairs. Here are the pros and cons of buying an extended warranty:
Potential Pros
- Parts and labor on Sub-Zero models is very costly, so repairs can easily exceed $1,000 outside of warranty. Extended plans cover this.
- Sub-Zero only provides a standard 2-year warranty, so you’d have no coverage after year 2 without extending it.
- Added warranties can cover up to 5 years for full appliance and up to 12 years on sealed system components. This provides better protection.
- Extended warranty facilitates repairs by Sub-Zero’s own technicians who are familiar with the unique technology.
- Plans are fully transferable to a new owner if you sell, maintaining coverage and resale value.
Potential Cons
- Sub-Zero reliability is better than many brands, so repairs may be infrequent. Warranty may seem unnecessary.
- Sub-Zero extended warranty pricing is higher than other brands, ranging from $359 – $1,959 for 3-5 years.
- You still pay a $100 service fee per repair visit under most extended Sub-Zero warranties.
- Food spoilage coverage amounts tend to be lower than premium third party plans.
- Sub-Zero plans must be purchased within time limits, so you can’t add later if appliance develops issues.
Overall, the potential repair cost savings usually make purchasing an extended service plan worthwhile for pricey Sub-Zero refrigerators, despite the higher