Should You Really Buy Appliance Insurance? (2017 update)

Every time you buy an appliance, sellers put pressure on you so you purchase an extended warranty (appliance insurance). They use all means to make you understand how important that package is and how you’d be crazy not to purchase it. But at the end of the day, you understand that every company sells what is profitable to them.

Insurance companies benefit from selling insurance packages just the same way manufactures get profit from selling the actual appliance. Those company managers are much cleverer than you think. They already have done their calculations of costs to make sure they don’t pay more for the warranty than they actually receive from you.

The Exact Meaning of Appliance Insurance

Appliance insurance is an advanced form of the manufacturer’s warranty. Apparently, it is better than manufacture’s insurance. It actually provides a longer period of cover. It also caters for minute repairs that are not including in the manufacturer’s warranty. For example, if the manufacturers provide a one-year warranty, appliance insurance can extend up to 3 years. It offers additional covers like insuring against damages caused by you!

Generally, appliance insurance contains sweet deals that you can’t avoid. But, don’t forget their main intention! It is to make money at the end of it all.

Most appliances will either need repair immediately (which is taking care of by the manufacturers) or after the expiry date of the product. Therefore, basing on their calculation, they reasonably know that chances of making compensations are extremely low.

Should You Buy Appliance Insurance?

Unfortunately, most of those who purchase appliance insurance cover always realize later that it was indeed a mistake. Kindly reconsider your thoughts again, if you intended to obtain such an insurance cover. Below are two substantial reasons why you shouldn’t buy appliance insurance cover.

  1. The manufacturer’s warranty is enough. If you are newly purchase appliance has a defect, it would most likely break down immediately, or a few days after buying. An appliance in good working condition after a purchase has very minimum possibilities of breaking down. Therefore, the extended warranty won’t be of any help in the long run.
  2. Most appliance warranties come with small prints. One thing you will never like about small prints is their nature. They are inconspicuous, and at times, invisible – especially if you are just wading through. Furthermore, some of the instructions provided in small prints are not always explicit. It excruciates to spend money (a lot of money) in a non-beneficial activity.

Before Buying an Appliance Insurance

Do you still feel the urge of buying an appliance insurance cover? If yes, I suggest you to do it cautiously. Read through the small prints carefully before signing anything. Ask for clarification on any information you don’t understand.


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