Which Appliances Need an Extended Warranty?

What is an extended warranty?

An extended warranty extends the period when you can get repairs beyond the manufacturer’s warranty at no additional cost. It provides peace of mind that if something goes wrong due to normal use, help is just a call away without worrying about hefty repair bills.

There are three main types of extended warranties:

• Manufacturer warranties: These are offered by the appliance's maker and typically provide the most seamless coverage with authorized repairs and original parts. However, coverage is usually limited to specific issues or defects.
• Retailer warranties: These are sold by the store where you purchase the appliance. Retailer warranties may offer perks like in-store servicing or replacement, but coverage terms vary widely.
• Third-party warranties: Independent companies offer these warranties and may provide more flexible coverage options or extended durations. However, claims processes can be more complex, and repair quality may vary depending on their technician network.

What to consider before buying an appliance extended warranty

The decision to purchase an appliance extended warranty should be based on your specific circumstances, including brand reliability, warranty terms, your financial strategy and appliance longevity.

Reliability of the appliance

Research the reliability of the appliance and its typical repair costs. Some brands are known for their durability, which might make an extended warranty unnecessary. The ConsumerAffairs Research Team has done some of the work for you with our guide to the best appliance brands.

Terms of the warranty

Understand what the extended warranty covers. Some warranties only cover specific parts and may not include routine maintenance. Also, be aware of any limitations or exclusions in the warranty contract. Some brands exclude breakdowns that aren’t part of normal wear and tear, and some exclude cosmetic damage like scratches or dents. Others will deny your repair claims if the appliance shows signs of rust.

Repair costs

When an appliance breaks down, do you have the cash saved up to get it repaired or replaced? For most people, the answer is no. So, you need to weigh the cost of an extended warranty with how much you can expect to spend on repairing or replacing your appliance.

Generally, an appliance extended warranty costs $25 to $50 per month, or $300 to $600 per year, as of publishing. That can seem like a lot to individuals on a budget, but compare that cost with the potential costs of repairing or replacing your appliances:

Appliance life span

Some appliances may not need an extended warranty because the manufacturer’s warranty covers them for the duration of their life span. So, it’s key to check your manufacturer’s warranty before committing to an extended warranty.

Here’s the average life span for appliances around your home so that you can compare it to the manufacturer’s warranty:

What items should you buy extended warranties on?

Which appliances you get an extended warranty on depends on all of the various factors already mentioned, but generally, here are some appliances that you may want to consider:

• Refrigerators: Fridges are used continuously and tend to have expensive repair costs, especially models with ice makers and digital displays.
• Washers and dryers: These appliances endure a lot of use and can be expensive to repair, especially front-loading models with more complex mechanisms.
• Dishwashers: While not as essential as refrigerators, dishwashers can benefit from extended warranties if you opt for higher-end models with sophisticated electronic panels and features.
• Ovens and ranges: Due to the high cost of parts and labor, high-end models, particularly those with electronic controls or induction cooktops, are more likely to be worth the cost of an extended warranty.
• Microwaves: An extended warranty might make sense for built-in models, which are more expensive to replace or repair than countertop models.

Extended warranty pros and cons

Extended warranties can offer valuable protection and convenience for some consumers, but they also come with limitations and costs that may not make sense for everyone.

Alternatives to an extended warranty

A solid alternative to an extended warranty is purchasing a home warranty plan. Instead of just covering one appliance, a home warranty can cover most of your appliances in one plan. Home warranties are a little more expensive at $36 to $68 a month, or around $450 to $600 a year, but remember, you’re getting much more coverage.

Here’s what home warranty plans typically cover:

• Refrigerators
• Ovens and ranges
• Dishwashers
• Built-in microwave ovens
• Garbage disposals
• Washers and dryers
• Trash compactors
• Freezers
• Air conditioners

Bottom line

When deciding whether to purchase an appliance extended warranty, weigh the repair cost, the warranty’s terms and the appliance's reliability. Appliances like refrigerators, washers and dryers, which are costly to repair and crucial for daily life, are often good candidates for extended warranties.

Additionally, high-end models with sophisticated features, such as smart ovens or built-in microwaves, might also justify the extra protection to safeguard against expensive repairs.