Home Appliance + Lighting Blog

ABC is having an expose on extended warranties, so I thought this may be a relevant topic to update.

We do not push warranties. It's up to you.

This article will help you decide when you should consider a warranty, when it's not necessary and when you should run from the offer.

Should you buy extended warranties? The answer is perhaps and never. 

I was in a competitors' store over the weekend, and saw this Maytag refrigerator.They really push extended warranties all over the product and store. 

We are increasing the prices of our service contracts effective August. Quite simply, we are spending more money fixing products than the actual warranty. I would like at least to be even after cost of repair.

The question is: Should you buy one? The answer is maybe, depending on what products and who is selling it.

Couple of considerations:

1. Do NOT buy an outsourced extended warranty. Typically, they are call centers with no actual service providers. Check the Better Business Bureau for some pretty shocking info about these companies before you buy.

2. Do not buy an extended warranty from an out of state company....unless they have a service presence.

3. The most expensive products to repair are a washer and refrigerator. The least repaired items are microwaves and hoods. Buy the warranties accordingly.

4. Ask what the warranty covers. We will cover $250 in food loss for a refrigerator. What do they do if the product cannot be fixed 2 years into a warranty.

Again, do not be pushed into buying an extended or after market guarantee. Do some research to insure the work will be done if there is a problem.

You want to be confident the warranty is worth more then paper and ink.

I find extended warranties interesting. Then again, I have a strange sense of humor. These slips of insurance really run the gamut of consumer emotion. From people who think it is expensive (which it can be) and a waste of dough to customers who are irate for not buying one and having to pay for massachusetts refrigerator service.

It isn't all champagne and caviar being the CEO. Sometimes the best intentions dont quite work. So now you are now me (minus the issues). What would you do? Before you read the complaint a couple of points:

Extreme quality....Hand blown glass, authentic details and great components. Would I buy it? In the right room, it certainly would be a consideration.

Interesting article in The Journal today about extended warranties


http://online.wsj.com/article/SB122057908752702305.html?mod=hps_us_whats_news



GE is selling their extended warranty business to an insurance company Assurant. Although the basic math behind an extended warranty is simple, smaller payment to avoid a theoretical larger payment later. It seems to be a hot button topic with consumers.

MY Take:

A. Never be bullied into buying a service plan. Many companies require their associates to sell a certain percentage of their products with warranties

B. NEVER buy a service plan from a company that does not have an actual service company. How will this product be fixed without actual repair people.


The math works in theory. Just insure the actual service does