Are Extended Warranties Worth It?


Are extended warranties worth it? And Will it save you money or are there alternative options available for you? Are you wondering if you should extend your manufactures warranty on your household goods? Or take one out when purchasing a new appliance. See below for helpful advice on the topic.


Are extended warranties worth it is an on-going debate? And whether or not you should extend your warranty on the more expensive home appliances you have. When buying a new appliance, even if you’re buying on the cheaper end of the spectrum at around £200, should you be purchasing the extend the warranty offered to you at the point of sale, to cover you should your appliance ever breakdown? As you should know, all large items such as fridges, washing machines and televisions come with a manufacturers’ warranty. Which on average, a manufactures warranty can last up to a year, some may be longer, so it’s always best to double-check the manufacture guarantee before considering buying an extended warranty.


Due to the Consumer rights act 2015, companies selling large domestic goods are expected to produce items of a “satisfactory quality” and to “last a reasonable amount of time”. Because of this, most customers find they never claim with the manufacturer warranty, as it’s at the peak of its performance. The deterioration of such appliances is expected to start happening after a year of purchase. Companies offering extended warranties know this fact and is why they offer you one year manufactures warranty as standard. They are relying on the new appliance lasting up to 2 years without you having to make a claim, and they will not have to pay out for any form of repairs. Meaning you will be paying for a product offering you no financial gain but making the company plenty of money. This is also why you will see that companies that provide extended warranties will always factor in the age of the appliance and won’t cover ‘high risk’ appliance, as the older an appliance is, the more likely it is to breakdown.


On the other hand, what do you do when an appliance does break down after the one year manufactures warranty? You decided against extending the warranty, and if you don’t have a form of Domestic Appliance Cover for your white goods, you’re not covered at all. Your household contents insurance won’t cover you for breakdowns. Now you’re left with the decision to either pay for a new appliance or looking into getting the item repaired; with the possibility of increased costs from the call-out fees, parts and labour for just one item to be restored. So it can be tempting to extend the warranty for your own peace of mind for the future.



Studies show that 55% of customers who have purchased extended warranties for a single household item have stated that they have never claimed with the policy they have, due to a multitude of reason. Most commonly there being hidden loopholes from the company providing the warranty, such as a time frame for reporting a claim – resulting in customers missing their window of opportunity and the application being declined. Parts and labour not being covered in your monthly costs as would be expected, meaning you now have to decide whether or not you pay another upfront cost if you want to get the appliance fixed or replace the appliance altogether. If you were ever considering extending the manufacturer warranty, we highly recommend reading the terms and agreements of the policy down, to the fine print before purchasing. You will usually find they have loopholes in place, so they don’t have to repair or replace your appliance. Most people who have purchased an extended warranty find out that it is a monthly cost which results have no financial return due to the claims policy.


Another thing to be mindful of when considering extending a warranty is the service contract agreement themselves. Due to a manufactures warranty being a policy agreement with an external company from the brand you are purchasing, they will have a services agreement with an external company to supply any services when it comes to making a claim, which is not a guarantee. Meaning the company providing the service, will not be regulated by the Financial Conduct Authority (FCA). If the provider of the policy goes bankrupt you will have no legal form of protection for the money you have invested in the maintenance of your domestic appliances, and any claim you have, outstanding or current, will not be paid and you will be left without a working appliance.


We do have to mention there are positive when it comes to extending a warranty on your domestic appliances. If you take the time to become well informed on the cover as a precautionary measure, reading all the teams and agreements, there claims policy and have a well-rounded understanding of what you’re entitled to as a customer you can benefit from an extended warranty. The major one I think everyone is looking for is the peace of mind that your appliance is covered in a worst-case situation of a breakdown, meaning you will have the support in fixing or replacing the damaged item. As long as there’s no hidden cost when you make a claim, you have the financial security that all should be taken care of for you. These two factors alone can be enough for some people to make the extended warranty worthwhile, whether you make a claim or not having that peace of mind helps.


Most people find insurance with a Domestic Appliance Cover company to be useful. Having all your household items covered by the one company, meaning when you need to make a claim, it simplifies a stressful time for yourself, as it just one company you need to contact. It can also be more cost-effective, as you can have multiple items of different ages all under the same policy. Meaning no matter the age of the appliance, be it new or eight years old, they are all covered ready for the unexpected. Another reason people tend to go with a Domestic Appliance Cover Company rather than extending the warranty is that all Domestic Appliance Cover companies are FCA regulated, meaning your investment in your appliances has protection. Finally, Domestic Appliance Cover companies tend to have a more comprehensive cover, that has to be clear and concise before signing into an agreement, and they can’t hide behind loopholes due to it being FCA regulated. If you interested in learning more about Domestic Appliance Cover, please fill out the form below,


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You don’t have to wait 30 days to make a claim or provide proof of purchase to make a claim. We will also insure any kitchen or home appliance, regardless of it’s age.

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