PRESS RELEASE: 70% of UK consumers buying insurance warranties that donít suit their needs
PRESS RELEASE: 9th February 2016
To view the full Press Release CLICK HERE
Recent independent consumer research* has shown that nearly 70% of British households have considered buying - or already have - home appliance warranty insurance that they do not understand, meaning they could lose out financially in two immediate areas:
- By purchasing an insurance product that does not suit their needs or be fit for purpose in an eventual insurance claim, or
- Leaving them having to pay for repair or replacement costs if an appliance stops working.
The survey – commissioned by appliance insurance providers KAPUT - asked: Do you know the difference between warranty insurance and a warranty service plan?
- The majority (64%) do not understand the difference between the two, while (36%) do.
- A slightly higher percentage of women understood the differences (39% vs. 33% of men)
- Across the age groups 25-65+, those aged 45-54 are least likely to know the differences.
Commenting on the study, Managing Director Jonathan Pooley from KAPUT said: “The key difference between warranty insurance and a warranty service plan is the protection that a consumer ultimately has, should they make a claim under the agreement which the warranty provider then does not honour. With appliance warranty insurance – such as we offer with KAPUT – it is an insurance policy. This means customers have the security of being covered under the Financial Services Compensation Scheme (FSCS) should the worst happen and the insurance provider fails to meet their obligations under the agreement.
“With standard service plan agreements, the consumer has no protection under the FSCS as it is not a regulated product. So, if the service plan provider goes out of business or does not fulfil their obligations, a customer will have no recourse or entitlement to claim for their losses.”
Mr. Pooley added that with “41% of respondents also suffering from the breakdown of a domestic appliance in the last 3 years*, it is imperative that consumers looking to protect themselves against the costs of appliance repair or replacement should ensure they choose the most appropriate product for them”
To find out more about KAPUT, visit www.kaput.co.uk
* Carried out on behalf of KAPUT by Usurv.com of 100 people aged 25-65+, February 2016
Jonathan Pooley, MD Kaput, telephone: 0800 999 7878 or email: firstname.lastname@example.org
We are KAPUT – a UK based company providing Multi-Appliance Extended Warranty Insurance across the whole of the UK including the Isle of Man, Channel Islands and Northern Ireland.
We believe we have designed and provide a superior insurance product for over 70 different home appliances and audio/visual equipment, by addressing as many of the gripes about Extended Warranty Insurance we could come across.
We let you manage your account online, or you can speak to a real person 24 hours a day. Our Engineer Network is one of the largest independent service network in the UK, with the parts and skills to repair and replace your appliances. And we keep you in the loop at every stage – by text, online and good old fashioned phone calls.
In a nutshell – we provide peace of mind insurance to repair or replace your appliances if they go KAPUT!
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.