Buying appliances is a big investment. While some shoppers see extended warranties as unnecessary add-ons, they could be essential in saving you money in the long run when it comes to large purchases. In this article, we’ll break down everything you need to know about extended warranties on large appliances. How do they work? How much do they cost? And most importantly, are they worth it?
How Do They Work?
Typically, appliances come with a manufacturer's one year parts and labor warranty; this means that after one year, all repair costs fall on the responsibility of the owner. Manufacturers are strict about this too– even if you’re one day outside your warranty, they will refuse to cover it. If you did choose to purchase an extended warranty, that warranty would start as soon as that standard manufacturer’s warranty was over. Just keep in mind, though, that extended warranties typically don’t cover damage caused by misuse, improper installation, or acts of nature. At Hallocks, our extended warranty steps in to cover mechanical and electrical failures for an additional four years. That means that from the date of purchase, you would get a total of five years covered, including parts and labor.
How Much Do They Cost?
At Hallocks, our extended warranty pricing is tied to the price of the appliance itself. Below is a general breakdown of our offerings:
| 5 Year Major Appliance under $500.00 | $149.99 |
| 5 Year Major Appliance under $1500.00 | $249.99 |
| 5 Year Major Appliance under $3500.00 | $299.99 |
| 5 Year Major Appliance under $10,000.00 | $399.99 |
When reviewing the cost of an extended warranty, it’s helpful to be aware of potential service prices. A single appliance service call with one of our technicians starts at $190.37 before parts and labor. When comparing the cost of an initial diagnostic service against extended warranty prices, it’s much easier to see the benefits and potential savings with an extended warranty. This means that one service call over a five-year period would singlehandedly pay for itself.
Benefits & Drawbacks of Extended Warranties
Benefits
Imagine you decide to revamp your kitchen, so you purchase a full suite of new appliances. Everything is great for the first year and a half, and then you start to notice that there’s a small leak coming from the bottom of your dishwasher door. You don’t think much of it, but as the weeks go on, the leak gets worse. If this happens and you aren’t prepared to spend a couple hundred dollars on a service call, then where does it leave you? If an extended warranty had been purchased at time of sale, all you’d need to do is call up Hallock’s and schedule a technician to come and take a look, and all of the labor and parts are completely covered.
I would argue that peace of mind is the best benefit you get from the purchase of an extended warranty. Knowing that unexpected repairs are covered can remove a lot of stress, especially for essential appliances you rely on daily. For homeowners who prefer predictable expenses over surprise repair bills, extended warranties are a smart safety net!
Drawbacks
The most obvious downside, which most people call out, is the upfront cost. When you’re spending quite a bit of money on new kitchen or laundry appliances, any additional upfront costs can be a stressor; this is especially true for something you don’t know if you’ll ever need. Unfortunately, none of us are able to know when, or if, our appliances will break down. Another drawback was mentioned earlier - sometimes extended warranties don’t cover everything. Many times, extended warranties don’t cover events like floods, fires, pests, or other “acts of God.” Extended warranties are not a one-size-fits all solution, and it’s important to consider all angles before deciding it’s right for you.
Which Products Need a Warranty?
While you may not need a warranty, these appliances have shown a higher likelihood of service calls within the first five years of ownership:
- Refrigerators: Refrigerators are among the most commonly serviced appliances. According to Consumer Reports, it’s estimated that up to 31% of fridges require service within the first five years. With modern refrigerators being packed with electronics, ice makers, and sensors, repair costs can add up quickly.
- Dishwashers: These appliances are known as some of the most temperamental products on the market, and while many homeowners don’t report major issues until 5-10 years of use, a single leak can lead to excessive water damage and high repair costs. Given the risk, many people opt for coverage for peace of mind.
- Washers & Dryers: In another Consumer Reports article, it’s estimated that 20% of washers and 16% of dryers require service within a 10 year period of use. Because laundry machines are used frequently and involve many moving parts, it doesn't hurt to consider an extended warranty.
- Gas Ranges: Repairs on gas appliances, specifically ranges, cooktops, and ovens, are costly; they estimate anywhere from $200 to $600. And while these units are typically rated to last longer than their electric counterparts, it’s more worthwhile to consider an extended warranty due to the repair costs alone.
Which Products Don’t Need a Warranty?
It’s not always worth it to purchase an extended warranty. Many smaller appliances that are relatively inexpensive to replace or have fewer mechanical components may not justify the added cost. These appliances also include:
- Microwaves
- Televisions
- Window or portable AC units
- Electric ranges (depending on usage and complexity)
Is a Warranty Right for You?
Still unsure if an extended warranty is right for you? Asking yourself a few key questions can help you decide whether an extended warranty makes sense for your situation:
- What is covered under the plan?
- What is the expected lifespan of the appliance?
- How expensive are repairs on the appliance?
- Is the brand known for its reliability?
- How often will the appliance be used?
- Could I comfortably cover the cost of a repair if something breaks?
In Summary
Extended warranties aren’t inherently good or bad, they’re situational. For high-use, high-cost appliances like refrigerators, dishwashers, and washing machines, the added coverage can provide a real financial and emotional value. For any smaller or less complex appliances, skipping the warranty makes more sense. The right choice is dependent on your budget, risk tolerance, and how much the peace of mind is worth to you. Take a few moments to weigh the pros and cons, and if you’re unsure, talk to your local Hallocks team– they’re always more than willing to help you make the best decision for you and your lifestyle.