Why Buy Appliance Insurance
Every time you go out and purchase a major household appliance or piece of technology, you are often pressured to purchase the appliance insurance (or extended warranty) that is offered by the seller. They will give you numerous reasons why you'd be crazy not to buy it but at the end of the day you have to remember that companies only sell things they expect to make money on. That applies to the appliance you're buying and it applies to the insurance package they are offering. The company carefully calculates the cost to make sure they will not have to actually pay more on the warranty and repairs than they actually collect.
So Exactly What Is Appliance InsuranceAppliance insurance is a form of extended warranty that usually covers a longer time period than the manufacturer's warranty, but also covers some repairs that would not be covered by the manufacturer's warranty.
Why You Should Never Buy Appliance InsuranceMany people who purchase appliance insurance end up considering it a wasted cost, below is a list of some common reasons why you shouldn't purchase appliance insurance.
- The Manufacturer's Warranty is Sufficient: For the most part your appliance will break down immediately due to a major fault or well down the road when you might as well replace it anyways. So the extended warranty probably won't be used.
- Beware the Small Print: Many extended warranties actually come with all sorts of small print.