CONSUMER CHAMPION You don’t need extra cover... whatever they claim
WHEN you buy electrical appliances and white goods, the retailer will ALWAYS try to sell you an “extended warranty”. But are they worth the paper they’re written on or simply a way of making extra dosh for retailers? Here’s what you need to know:
WHAT IS AN EXTENDED WARRANTY?
An extended warranty is a form of insurance policy that covers you for repair costs after the manufacturer’s or retailer’s standard guarantee has expired, or at least that’s what is claimed. In fact, many critics argue they’re simply a huge cash cow for retailers, typically adding up to a fifth of the cost of the original item.
ARE THEY WORTH THE MONEY?
My view is no! Especially not when you consider most new goods are made to a high standard and you already have statutory and other rights that give protection. The Consumer Rights Act 2015 provides you with the right to a remedy if goods turn out to be faulty within six years of purchase and, if you have home contents insurance, you may be covered on that too. Finally, if you made your purchase on a credit card, you will have the protection of section 75.
COMMON PROBLEMS
There seem to be three main problems with extended warranties. It can often take as long as four to six weeks for repairs to be made under these warranties; many policies cover repair costs but not all cover parts and labour, while others place a cash or time limit on claims; and, like all insurance policies, there are often conditions (sometimes quite quirky, so check closely) and usually a “no-claim” period immediately after the start of the cover during which claims won’t be paid.
THE FUTURE
In the summer the Government is introducing the “right to repair” rule. This is aimed at manufacturers who have been told goods should last for up to 10 years. During this period, spare parts must be made available, thus making it easy to repair goods instead of people being forced to replace them. This is a further protection for consumers buying white goods and appliances and another reason extended warranties are unnecessary.