Are Extended Warranties On Kitchen Appliances Really Worth The Money? Here's What We Found

When you buy a new kitchen appliance like a fridge or a dishwasher, most companies will offer you the opportunity to take out an extended warranty in addition to the standard warranty applied to an item. This usually means that an item is covered beyond the typical warranty. Sometimes, this is absolutely worth it for an item, and sometimes it really isn't. Knowing when a warranty is worth taking out for an item (and which items absolutely need one) can cause a major headache. 

Take one out, and you could feel like you have wasted a bunch of money on something that works perfectly well all of the time. Don't take one out, and you could be faced with a major bill when an everyday item breaks down and you can't fix it. There's no need to lose sleep, though, as we've got all the information on when exactly a warranty is worth it and when you can pass.

More useful for some appliances than others

There are some appliances that it's worth taking out an extended warranty for, and that's expensive staple appliances like refrigerators and dishwashers. However, if you're short on money and you only can take out one, the thing you absolutely need to get a long-term warranty for is a fridge. A fridge is an item that's used everyday and with frequency, meaning it's much more likely you'll run into issues with it in the future. It's reported that approximately 34% of fridges need repair work after five years (via Consumer Reports), and taking out an extended warranty will have you covered in any emergencies.

As for dishwashers, they are used less often but are usually on the expensive side to purchase. This means that if you use it often and don't think you could buy another one straight off the bat, it's more than worth investing in an extended warranty to cover yourself. Aside from dishwashers and refrigerators, generally good advice is to think about the appliances that you would have difficulty replacing due to the price. These are the ones you should choose a policy for.

Check the terms and conditions before you sign

Nevertheless, when looking at extended warranties for the above items, keep the following in mind. Firstly, that it won't cover everything. If the company the warranty is under finds that the damage has been done by you rather than a fault with the appliance (even if it was accidental), the likelihood is that you won't be covered. Most warranties do not cover wear and tear or accidental damage, though this does depend on the terms of the warranty. 

Additionally, check your other insurance policies before taking out an extended warranty for an appliance. Some kitchen appliances could already be covered under your existing home warranty, in which case there is no point paying extra to cover the same item (unless the specific warranty has benefits the home one does not). Some banks also offer cover for select items, so it's worth looking into that option before you sign anything. Overall, it can definitely be worth the extra money to take out an extended warranty, but ensure you have thoroughly looked into the above options before doing so.