Have you ever bought a product and been offered an extended warranty? Most of us have at some point in our lives, so let’s have a look at extended warranties are and if they’re right for you…
What is Extended Warranty?
Extended warranties are a type of insurance that cover the cost of repairs to goods after the manufacturer’s or seller’s guarantee has ran out.
You can take out extended warranties on a whole host of items, such as fridges, washing machines, televisions, cars, and many more.
Standard Warranty
The Consumer Rights Act 2015 states that goods should be of a satisfactory quality and last a reasonable length of time under normal wear and tear. This means you already have a level of protection when making purchases.
Manufacturers often guarantee their goods for up to 12 months, meaning that if the product you bought breaks in this amount of time from ordinary use (i.e, you haven’t chucked it out of the window or set it on fire, etc), you can take it back to the shop and get a refund.
Some retailers may add their own additional period of guarantee included in the price of the product, on top of the period covered by the manufacturer. For example, the manufacturer may have guaranteed the product for 12 months, and the retailer for an additional five years, bringing your total period of guarantee up to six years.
What Protections do I Have Without Extended Warranty?
Aside from your protections under the Consumer Rights Act and standard warranty, you may have additional protection when purchasing goods.
For example, if you pay for goods valued between £100 and £30,000 on a credit card, the credit card company must cover you if:
- The goods are faulty
- The goods are not as described or advertised
- The goods are not provided to you when you’ve paid for them
If you have contents insurance, you should check what kind of protections you have under your policy, as the item may be covered by that insurance.
There are also alternatives like multiple item insurance, which you may take out if you wish to cover multiple gadgets.
Check the Details
If you do decide to take out an extended warranty, you should always check all of the details thoroughly and carefully.
Sometimes, retailers will sell extended warranties for things like electric goods which include time limits for repairs, such as waiting six weeks to have your washing machine fixed.
You should also check what kind of repairs the extended warranty would cover. For example, with car extended warranties, several parts are usually not covered, such as damage to windscreens, tyres and bodywork. These types of extended warranties also don’t cover components that are worn out from wear and tear.
It’s also a good idea to shop around to find the best possible deal if you want to take out an extended warranty.
Misselling
Any business selling you an extended warranty must act openly and honestly, ensuring that they do not lie to you or mislead you.
If you believe you have been missold an extended warranty, you can contact Citizens Advice or the Financial Ombudsman.