How do extended warranties work?

When you’re buying new goods, you might be offered an extended warranty by the manufacturer. Typically, these policies mean that the costs of repairs or replacements is covered for longer, but they’re not always good value for money. 

Here’s everything you need to know about the types of cover, standard exclusions and when it’s worth spending the cash.

What is an extended warranty?

It is a type of insurance policy that covers the repair costs of your appliances, after the manufacturer's guarantee has expired.

For example, if your fridge breaks down, an extended warranty could cover the cost of repairing or replacing it.

They’re optional extras, which are often offered at the point of purchase. However, you don’t have to get your warranty from the shop where you buy your goods, and it’s usually a better idea to shop around online to get the best price.

How long do extended warranties last?

Standard warranties usually last for one or two years. Extended warranty policies often cover you for far longer - usually last between one and five years. Most providers will not cover appliances that are more than 8 years old.

What appliances do they cover?

Extended warranties can cover a wide variety of purchases including white goods, technology and small appliances.

Typical products covered by extended policies include:

Lots of providers will let you insure more than one appliance on a single policy, and some even offer a discount for multi appliance cover. 

For example, you could get 5% off the price of your cover for every appliance you add.

What claims do they cover?

Most extended warranties cover:

The cover offered by an appliance warranty depends on your policy, so check the terms of cover carefully before you buy.

Here is more about how you can claim on an extended warranty

Are there any exclusions?

Yes, but exclusions vary depending on your policy. The most common exclusions are:

You also will not be covered if you:

You should always check the small print before you take out a policy. Make sure you have the cover you need and understand what you can claim for.

Where can you buy cover?

You can get an extended warranty from:

The best way to get an extended warranty is to compare deals and shop around, so that you can find the right cover at the cheapest price.

Before you buy, make sure you check the rules around authorised repairers, what happens if your item can’t be fixed, and any loopholes or exclusions.

You’re often offered the choice between paying monthly or in one lump sum. Monthly usually works out more expensive, so think carefully before you choose this approach.

Do you need it?

You may not need to pay for an extended warranty if your appliances are already protected elsewhere.

If an appliance breaks down within 6 months of you buying it, you should also be protected by the Consumer Rights Act.

Check to see if you are already covered by any of the below before you buy an extended warranty.

Here is how to decide if you need extended warranty cover