I too have read that extended warranties are a waste of money. I have been following this forum for several months now and it seems that many appliances these days have problems. As much as I'd like to think the manufacturer should stand behind their product for more than a year that just doesn't seem to be reality. Therefore, we will be purchasing 5 year extended warranties for our appliances. May turn out to be a waste - or maybe not.

A year-long study done a decade ago by Bell Labs found that 78% of computer problems were attributable to bad power (spikes, surges, dips, etc.) (heat was #2 at about 15%, leaving only 7% as 'other').

Instead of an extended warranty (which is only as good as the company providing it-remember Montgomery Wards-when they went bust, all of their extended and regular warranties went with them), get a whole house surge suppressor installed in your breaker panel.

Additionally, Consumers Reports recommends extended warranties only for laptop computers these days. They have dropped the recommendation (in most cases) for large screen TV's, their only other recent recommendation.

I bought EW for all my appliances, computer, 2 big screen TVs, washer/dryer, and used certified car. And yes, I've had to use them for everything. I will only buy them for the big ticket items for piece of mind. If they don't get used, oh well, but the back up is there. In today's world with everything electronic, I don't feel like it's a waste of money, because electronics tend break more than once, from my experiences.

Having a TV warranty allowed us to get new ones when 2 year old TVs went bad. Sears warranty allowed us to get a new DW when our original was going to cost more to fix than replace, etc. Thank goodness we renewed our warranty for the washer because that thing gave us hell and for the 3 times the mother board broke in 5 years, it would have cost us $350+ each time. The warranty paid for itself several times.

So, while many people on GW are against EW because they claim they are a waste of $$, I bought them for piece of mine, and feel good about that. While I do my research and homework when purchasing to ensure I'm buying great products, even the best brands go radical.

debbie_2006,
Who did you purchase your warranties from? The stores where you purchased, the manufacturer or a third party?

Your thinking is along the lines that I am thinking.

In regards to the power surge thing, is that simply by unplugging and plugging in, or electric going out from the pole and then coming back on? I'm not so sure that the problem with my refrigerator is the mother board and won't know until next week when it is replaced. But we had a controlled power outage when the electric company installed a new transformer on the pole outside of the house but that was after I noticed the temperature problems and other than that we have had none since purchasing it, other than unplugging it to move into my almost complete kitchen renovation.

Maybe it was just no good to start?

Power problems largely result from sources outside your home and control. Problems with lightning, other houses on the same transformer, tree branches knocking power lines, etc.

But occasionally power problems can come from inside the building. One problem I worked on had a known very reliable device that would die in this customer location every three months-they normally lasted 15+ years.

We installed a Dranetz meter (a device which measures a power line continuously and prints a report for every disturbance) on the line and went away. When we came back 24 hours later, we found voltage spikes as high as 410 volts (on a standard 117 volt circuit). After investigating, it turns out the laser printer was defective (not our equipment, fortunately) and was putting out a spike every time it started to print.

Lastly, keep this in mind: Would companies sell extended warranties if they did not make a profit on them? Most problems (especially computer-related ones) occur during the first 90 days of use, and are generally covered by the normal warranty.

I wouldn't dream of owning appliances without an extended warranty. We've had continuous coverage on the following for 8 years: washer, dryer, microwave, fridge. We feel these are the items the most subject to repairs. So far, we've had service calls at least once per year on all the covered appliances. Our GE Profile SxS fridge has had the icemaker replaced at least once/year since it was new. Imagine what that would've cost if not under extended warranty! The microwave was only repaired once, but it's currently under a recall. Our Kenmore Elite washer has required repair once a year, several repairmen have remarked that circuit boards require frequent replacement due to the vibration in a washer and dryer.

Although we spend about $300 a year on the warranties, the repairs would cost more. We have more than "broken even" on our warranty expense. I've never had the GE Profile range or DW covered, neither has required repair. Unfortunately, nowadays appliances are manufactured for breakdown and constant repair.

I'm generally deadset against extended warranties, and I've never been burned by not having one (I hope I don't regret saying that). On the other hand, I think those in busy households with teenagers and/or lots of kids and multiple adults might want to consider extended warranties. I know some people that put twice or three times the wear and tear on equipment as my wife and I. It might indeed make sense for them to get a longer warranty.

My experience with computers is that they usually go early while under warranty or when abused (like by a power surge or dropping). So something that gets a lot of rumbling, like a washer, seems like a terrible spot for electronics, but a great spot for an extended warranty.

I guess it's a personal preference and the data to help one decide aren't readily available. Replacing a prematurely broken appliance might cost more than an extended warranty, but I'd rather accept upfront that I might have to repair or replace it than buy an extended warranty.

Except laptops. But I think I'll even skip the extended warranty on my next laptop--they're cheap now and have become durable enough.

Up until three years ago, the ONLY extended warranty I had ever bought was on a stereo receiver *years* ago. Surprisingly I did make use of it ... but I had to drive the darn thing nearly 200 miles back to the original store.

Three years ago I *did* get an extended warranty on an F&P washer and dryer ... just because the dryer is the new topload design and I felt a little extra insurance on it may be indicated. Thus far, no trouble.

My older F&P washer/dryer (8 years now), no extended warranty, also no repairs. Or my four-years-old DishDrawer. No trouble with my now five-years-old plasma TV, either. Or my 11-years-old KA refrigerator. Etc. By and large, if used properly and with reasonable care (and surge supressors where indicated), appliances and electronics nowadays are more reliable than people expect.

Oops, almost forgot. My heat pump system in 2001 included choice of a cash rebate or ten-year warranty. I took the warranty, and that did end up being a good decision. The indoor blower motor went bad in the 3rd year (I think it was) .. which would have cost $600 (DC-powered variable-speed motor).

Think it is a preference deal.
Companies make good money out of offering extended warranties. Over all, the percentage that they actually have to pay out on is pretty low so still gives a good margin of profit. If there was not profit in them would they offer them? Don't think so.

I was always a big proponent of not getting the warranties as a waste of money.

That was then and this is now. First off, not an appliance store worker or seller of warranties. Just an a standard consumer that hopes they have done the best they could with their kitchen. Still an issue that is up to you, but in OUR instance we put a warranty on everything we just purchased with the exception of the microwave we bought as it was less than $100 (another story there that I've posted elsewhere).

Here is why WE changed our mind on warranties. Moved into a brand new home. Replaced the builder appliances not long after moving in. Put in new fridge, range, microwave and dishwasher. The microwave went out. Ended up paying an authorized service tech over $100 to tell me "yep it doesn't work" and list off a bit over $300 in repairs that we would have to pay that was not covered by what was left on the factory warranty.
Not long after the ice maker started leaking into the ice bin and freezing everything into one solid lump. Took the ice maker out and it was in sad shape. Not covered and the price of parts then was quite high. We still have that fridge and have been using bag ice in the bin for what little we use ice since. Maybe not the ideal, but now the part price is fairly resonable we may replace the ice maker.
Range, while family were visiting we were cooking a roast. Closed the door to the range as normal. Did NOT slam it or kick it up and let it go or anything of the sort. Just closed it normally as anyone would. Front glass shattered in a million pieces all over the floor. Price to fix $250 as manufacturer was not going to cover it. Luckily we called the appliance store and they, as a service, came out and replaced it for no charge. That was the only highpoint to the whole experience. All these appliances were less than 3 years old.

So, long story to get to this point of our buying warranties on everything we just purchased for our latest kitchen redo. With most appliances only offering a year in which they cover everything parts and labour (varies by brand) we just did not want to chance it with the amount we were now spending on appliances. For a range, freezer, washer, dryer, drink fridge, wall oven we ended up paying $539 in warranties so everything is covered parts and labour for a full 5 years.
Just a gamble either way. We paid out $539, but get it back and perhaps more if we end up needing it (includes replacement of entire item if repaired twice for the same issue).
Sure, the companies could go belly up, but then as I said it is a gamble either way.
If you don't buy the warranty then you are gambling that all is okay and that after the initial warranty period is over for each item that you will not have a problem with them. Way WE looked at it is sure we'd save the $500 we spent in warranties, but then with today's prices it would not take much to go wrong for us to spend that much to repair something or have to replace it. With $5000 in a range an extra $139 didn't seem much to spend to us.

Written a book a usual (sorry to all), but probably the best thing to do is look at the items you are wanting to buy and read through and have the warranties explained in detail on each. Then make your mind up on if you want to purchase the extra warranty.

Best of luck.
Cheers

I generally have not gotten EW but I do so in the following cases:

If the product is a new release or "new" technologies
If the product contains computerized electronics.

In these cases I have gotten EW.

Also I installed a surge protector in my electric box to try to limit power surges.

One more point about extended warranties on major appliances. Shop around. I always shop both Sears and GE for warranties, then play them off each other. The pricing is definitely negotiable. Also, repairmen can sell warranties and often quote lower prices than you get on the phone. Always ask for a multiple item discount.

Kas:

Sorry, I haven't read this thread in a few days so I'm late in responding to your quesion.

My appliance warranties are from Sears where I bought them. Although they are expensive, they even cover cosmetic scratches along with annual maintenance checkups. My sales guy said that even if I get a dent in my SS frig or a scratch on my SS range, they will replace the part, for example. They have floor to ceiling coverage with their EW which is why they are more than other places.

As for the mother board on my washer, I think it was just bad boards I was getting. The Sears repairman said I was lucky to have the EW because the part cost over $350 plus repair costs (x3 for each repair and 2X for my dryer). I've since discontinued (last year) the EW on my 7 year old washer and dryer because I don't like these units, and DH said when they break again we'll get new ones with knobs instead of the touch screen.

As for the TV's, they are from Circut City. Their warranties are great too. If they can't fix it, they'll replace. And as I've said, they've HAD to replace 2 TVs.

I checked into all the 3rd party warranty services out there and I didn't trust them - any of them. Not everything is covered and you really need to read the fine print to know what you're paying for.

If anyone knows of a reputable 3rd party warranty place, I'd love to know.

As I said, I prefer having the piece of mind filed in my desk drawer then have to take $200, $300 or more out of the bank just to fix each occurance. So far, I don't regret paying for EW.

I remember about a year ago there were several threads discussing whether the use of fancy electronics on ranges would create massive board replacement $$$ because of the heat/steam created.

Here's my experience, and our nephew's:

On their Jenn-air slide-in gas range, every internal part has been replaced, not just once but several times. They are on a first-name basis with several repairpeople. He feels the EW for $100 is the best money they've ever spent.

The range came with the house, so needless to say he doesn't intend to buy another Jenn-air. I've recommended Bluestar, for reasons below.

I owned a Kenmore/Frig gas range purchased in 1989. After a few years it was starting to get a little flakey, turning itself off at minor power fluctuations. This was noticeable since my computer is only 10' away and nothing else would go off, just the oven. Made baking a little dicey, I had to go check it periodically.

Replaced it in 2003 with a Kenmore/WP gas range, virtually identical. Refused the EW. In March 2007, after a few months of displaying the same oven-turning-off symptoms as my previous range, the board failed completely.

Now I was on the hook for a $350 repair. This, on a stove that cost $980.

I opted for a reconditioned board, to save money. First mistake. Then I refused the EW again, second mistake.

The second board failed in October, just six months after the first. As a reconditioned board, of course, it only had a 30-day warranty.

So now I have a new board - #3 - for another $400, plus a 2 yr warranty. We plan to update the kitchen again with a new DW and stove at that time, and believe me, I can hardly wait!

This is an excellent stove in many respects - good power, fabulous simmer - but I know now that the heat does indeed kill these motherboards. Even though I run the range hood at full blast whenever cooking or baking, these electronics will not last.

it seems that warrantying units with electronic controls may be the way for me to go.....

i do have some time to go before I decide but my fridge is getting a new mother board already so i am thinking right now this is the way I should go

I think we need to make good use of these boards in reporting problem appliances, and manufacturers that make problem prone products. Too many companies have shortened their standard product warranties, while at the same time they are making less robust products.

While there are some disposable appliances out there, appliance are considered "durable" goods, by economists. It's too bad more manufacturers don't consider them as such.

well, i had my second repair guy in today replacing the mother board on my new GE Profile Arctica fridge(it was not cooling avg temp was anywhere from 40 -48 deg, he believed that it was a power surge; not so sure about that but whatever)

I asked him his opinion as I had the first service guy; he 100% says to do it on any electronic operated appliance.

He himself has them too, because even though he can do the repairs he said the cost of the parts is incredible.

So given the opinions here and both service guys I will take out EW's on my Fridge and Icon oven. DW is too old at this point and everything else, except maybe the vent hood, which I doubt, does not have electronic controls.

Thanks to all that responded.

And I do agree with maxq, durable goods, idk, it seems that appliances are less durable than ever before....