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Are warranties value for money ?

In line with the cost-of-living crisis, ‘Which?’ has recommended consumers avoid “worthless” extended warranties on appliances and technology purchases to save cash.

Following a survey of 2000 consumers, it was found that most of the extended warranties offered by the UK’s biggest retailers are either problematic or not worth the cost. ‘Which?’ has suggested that over the last two years consumers have purchase extended warranties which have added an average of £84.80 to the originally purchased item.
Furthermore, there suggestion has been that consumers would be better off fixing unexpected repairs themselves, and not claiming on the warranty.

In most cases, extended warranties do not include comprehensive cover and consumers pay again for breakdown cover. According to ‘Which?’ one retailer told consumers they could not offer replacements and only allowed three successful claims a year.

‘Which?’ head of home products and services, Natalie Hitchin’s, said: “Although it is hugely disruptive when a tech product or appliance breaks, our research shows that extended warranties and insurance plans just aren’t worth the extra cost as they don’t cover you for as much as you might expect. If you’re looking to cut costs during the cost-of-living crisis and want to cancel your warranty, you should receive a full refund if you cancel within 45 days and haven’t made a claim and a pro-rata refund after then. It’s worth looking at home and contents insurance that covers all your tech and appliances rather than having individual plans for each product.”

Under the Consumer Rights Act 2015, people are entitled to a full refund, repair, or replacement if they notice a fault within 30 days. Statutory rights last up to six years in the UK.