"Cost of a three-year extended warranty for a dishwasher: $157.97.
Average cost of a dishwasher repair: $159.
The
fact that service contracts often cost about the same as a repair is
just one reason extended warranties — also known as service contracts
and protection plans — are hardly ever a good deal."
"Not actually extended: Despite the name, the Federal Trade Commission says
many “extended” warranties go into effect at the same time as the
manufacturer’s warranty. Plus they contain language requiring you to tap
the manufacturer’s warranty first." Why pay for
duplicate coverage?
"Lots of exclusions: Complaints to the Better Business Bureau show
that many consumers are frustrated to find that their extended warranty
won’t cover their problem because of 'exclusions' in the fine print of
the contract. For example, some service contracts won’t cover routine
maintenance, accidental damage or preexisting conditions. Others exclude
specific parts."
"Deductibles and fees": many warranties
charge deductibles or service fees on every claim.
"Must mail the product": "some extended warranties require you to ship your broken
product somewhere for repairs." That’s an extra cost plus
time without the product.
"No servicer selection": some contracts require that you use a specific repair facilitythat may not be convenient or reliable.
"Shop must get permission": repair shops may have to obtain preapproval from the warranty company before making repairs, further delaying the process.
"Third-party companies: Many extended warranties are sold
by retailers and backed by third-party companies, rather than by the
manufacturer of the product. Some consumers have complained that the
salesperson never “activated” their service contract, so the warranty
company refused to honor it. Other times, these third-party warranty
companies have gone out of business, leaving consumers with nothing for
their money."
Don't be pressured or scared by the sales clerk to buy unnecessary "protection."
Do your research before you buy to choose reliable products from ethical companies.
For more info and advice on extended warranties read Elisath Leamy's April 4 article in The Washington Post at: https://www.washingtonpost.com/lifestyle/home/why-extended-warranties-are-hardly-ever-a-good-deal/2018/04/03/928f190a-2d44-11e8-b0b0-f706877db618_story.html?utm_term=.84be6a2864ed
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