How to protect your appliances against breakdowns
Breakdowns - How to protect your appliances
You may be asking yourself if an extended appliance warranty is worth the money. If suddenly faced with a breakdown of an appliance, and after getting a quote for a repair, you may realise too late that a policy was worth the premiums. A policy may come into its own if you suffer an appliance breakdown. So how do you go about protecting your appliances?
Weighing up whether you need insurance
Before rushing into taking out extended insurance for your appliances it may pay to weigh up whether you actually need insurance. Some points to consider include:
- the length of insurance offered in the manufacturer’s warranty. Often this is a year, however, in some cases it may be longer;
- if you paid for your appliance with a credit card, the Consumer Credit Act may provide protection if the appliance is faulty;
- appliances have come a long way and they are now more reliable than ever;
- prices for appliances are always falling.
Choosing your extended insurance policy
If you have decided on protecting your appliances for breakdown and recalls you have to decide where to get the cover from.
The store you purchased your appliance from may offer extended cover. However, there is nothing to say you have to take the protection. You can choose protection with a standalone insurance provider.
An extended insurance policy for appliances with a standalone provider may typically be a more cost-effective way to cover your appliances. It may also offer protection that is more comprehensive.
The store’s insurance may come with many conditions and exclusions. In some cases they may not make them clear, so it generally isn’t as transparent as a policy typically offered by the standalone provider. For example, the store cover may not include labour, parts and call out charges, while a standalone provider’s insurance may.
When considering taking out extended insurance you may wish to check for certain things. For instance:
- does the policy offer a replacement if your appliance cannot be repaired;
- if so does it cover the total price of replacement;
- are there any exclusions in the policy;
- does the provider limit the amount of times you are able to claim on the appliance;
- are you taking out a guarantee or a service agreement, you may wish to ensure that the policy is regulated by the FCA;
- does the policy cover both used and new appliances?
Protecting your appliances with extended warranty insurance may save you a great deal of distress both financially and time-wise, providing you ensure it is suitable for you.
In a press release we issued earlier this year KAPUT warned that as many as 70% of consumers failed to appreciate the way in which warranty insurance works and that the age group most likely to have this gap in their knowledge are 45 to 54 year olds.