Extended warranties explained: Are they worth it?

An extended warranty kicks in after the standard manufacturer's warranty ends. We'll take a look at whether an extended warranty is necessary if you already have home contents insurance, and what benefits and drawbacks you'll find with each.

What's the difference between an extended warranty and an appliance insurance policy?

An extended warranty is a type of insurance policy that gives extra coverage for repairs and replacements for products after the standard manufacturer's warranty expires.

It's typically purchased from the retailer or manufacturer and covers a single appliance. It'll usually cover mechanical or electrical failures, and sometimes accidental damage, depending on the individual policy.

An appliance insurance policy is a separate policy from an insurer, providing broader coverage that can extend to multiple items (multi appliance insurance) including accidental damage, theft, and extended periods.

Appliance insurance offers a more comprehensive level of cover, offering a potentially cheaper solution for multiple devices.

What does an extended warranty cover?

An extended warranty typically covers mechanical and electrical breakdowns for household appliances and white goods like:

• Fridges and freezers

• Dishwashers

• Washing machines and tumble dryers

• TVs and DVD players

• Wine coolers

• Coffee machines

• Ovens

Coverage often includes parts, labour, and call-out fees. Some policies may also cover accidental damage as an optional extra, so it's worth checking your policy carefully to see if this can be added on. This extra protection can help with unexpected mishaps - like cracking a fridge shelf or damaging a TV screen.

How long does an extended warranty last?

A standard manufacturer's warranty usually lasts 1-2 years, with extended warranties taking over after this initial period. An extended warranty can last 1-5 years, but most providers won't cover items older than 8 years.

A warranty extension is a key selling point for these policies, and the period of cover is often a deciding factor for users.

Where can I buy an extended warranty?

You can buy an extended warranty at the point of sale from a retailer, directly from the manufacturer, or from a third-party insurer.

It's always worth shopping around before you make your decision, and you shouldn't feel pressured into buying a policy at the checkout if you're unsure. Comparing policies online can lead to better deals and more suitable cover for your individual needs.

How can I find out if I already have cover?

If you're not sure whether a household appliance has cover already, check for an existing manufacturer's or retailer's warranty.

It's also worth reviewing your existing home contents insurance policy. Many policies cover appliances against damage from specific events like fire, theft, and flood. Accidental damage can also be added on as an optional extra in many cases, protecting you financially in the event of slips and spills.

You can also check whether you have any packaged bank accounts that include extended warranty benefits.

Do I need an extended warranty if I have home contents insurance?

You probably don't need a separate extended warranty if you have home contents insurance, but you may want to check your policy for accidental damage insurance and breakdown cover.

These might need adding as extras. Contents insurance covers damage from events like fire and theft, whereas extended warranties and some appliance insurance cover mechanical/electrical breakdown, which your standard policy usually doesn't.

Home contents insurance is a more comprehensive and potentially cheaper alternative to multiple extended warranties for individual appliances. But home insurance might not cover mechanical or electrical breakdown, so always review your policy carefully.

What does the Consumer Rights Act 2015 cover?

The Consumer Rights Act 2015 (CRA 2015) is a UK law that gives consumers clear rights when buying goods, digital content, and services. It ensures they are of satisfactory quality, fit for purpose, and as described.

Some of the key provisions include:

• Short-term right to reject (0-30 days): This includes a full refund for substandard goods.

• After 30 days: Right to one repair/replacement. If this is unsuccessful, you should be entitled to a partial refund. The Act provides protection for faulty goods for up to six years in England and Wales.

• Digital content: Must be as described, fit for purpose, and be satisfactory quality.

• Services: Must be provided with reasonable care and skill, within a reasonable time, and for a reasonable price.

• Unfair terms: Unfair contract terms, like hidden charges, are not binding on consumers.

• Cancellation rights: Cooling-off periods for distance/off premise contracts (online, phone, etc.).

The retailer is responsible for ensuring the goods are of satisfactory quality, fit for purpose, and as described. The burden of proof shifts after six months, meaning it's up to the consumer to prove the fault was present at the time of purchase. So it's always best to report product faults as soon as possible.

Why is it important to compare policies?

It's important to compare policies when looking at buying an extended warranty. Policies can vary significantly in price and coverage level, so comparing allows users to find a policy with the right amount of protection for their needs.

It also helps you avoid paying for cover that is already provided by your home insurance or other existing policies. We'll show you what policy options are available, comparing a broad range of insurers to find the right one for you.