Extended Warranty or Pay for Repairs? The FTC's Checklist
Updated
Short answer
The FTC's questions
- What does it cost up front, and are there deductibles or per-visit fees?
- Is there a fee to transfer it?
- Does it cap reimbursement, or cover only specific parts or repairs?
- How do you make a claim, and who does the repairs?
Source: FTC, Extended Warranties and Service Contracts.
The numbers
HomeGuide: extended warranties cost $100 to $300 for an added 3 to 5 years, and typically cover parts but not labor (HomeGuide). Compare that with the typical repair on the cost page and with the manufacturer coverage you may already have: Maytag's 10-year parts warranty, or 5-year sealed-system coverage on Samsung and LG refrigerators.
Quick answers
Are appliance extended warranties worth it?
The FTC says they might not be if the product is unlikely to need repairs, and suggests savings as an alternative. Read the deductibles, caps and exclusions first.
How much is an extended appliance warranty?
HomeGuide puts them at $100 to $300 for an added 3 to 5 years, typically parts but not labor.
Rather have someone fix it?
Tell us the appliance, the brand, the model number and what it is doing. A local technician calls back with a time and a price before any work starts.