When you hit a certain stage in life, shopping for home appliances becomes a genuine thrill. It’s easy to spend a large chunk of cash on that new French-door refrigerator, and it’s surprisingly satisfying to take pride in a household appliance.
As you complete the purchase and schedule delivery, the retailer will probably offer you the option to pay extra for an extended appliance warranty in addition to the manufacturer’s coverage.
But is it worth buying the extended warranty, or would a home appliance warranty be a better fit? And which provider should you choose?
If you do a little homework before you buy (start here — we already did most of the legwork), you can walk into the store with a clear plan.
We compared manufacturer warranties, retailer extended warranties and home appliance warranties. Here’s what we discovered.
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What Is an Appliance Extended Warranty?
An appliance extended warranty is essentially long-term protection for your new appliance. This coverage starts once the manufacturer’s initial warranty expires. Extended plans often mirror the original warranty duration and provide continued protection. They’re commonly offered at the point of sale by the retailer, though some manufacturers let you buy extended coverage later as the original warranty nears its end.
How Does an Appliance Extended Warranty Differ from a Manufacturer’s Warranty?
The primary distinctions between a manufacturer’s warranty and a retailer’s extended warranty lie in who provides the coverage and exactly what is covered. A manufacturer’s warranty typically covers repair or replacement for defects present before the sale. These warranties are included in the appliance price and usually last about a year, handling the costs for functional parts and labor. They also often require that repairs be performed by manufacturer-authorized technicians.
An appliance extended warranty delivers multi-year advantages and, importantly, peace of mind. When the original manufacturer’s warranty lapses, your extended appliance plan takes over. Retailers commonly sell these plans, but manufacturers and third parties also market them. It’s worthwhile to shop around to find the most suitable option for your situation.
You can also consider providers like Choice Home Warranty. Their plans offer fast response times for household repair needs. Service can be requested 24/7 through an app, website, or phone. For a modest monthly fee, you can protect items such as washers, dryers, HVAC systems, ranges and refrigerators—appliances that typical homeowners insurance won’t cover. Take a quick 30-second quiz to estimate the coverage you need to shield your finances from repair bills.
When Is the Best Time to Buy Appliances?
Pros and Cons of Appliance Extended Warranties
Advantages of extended appliance warranties include predictable costs and being prepared for failures or defects. For example, you might budget $20 per month for your new fridge rather than facing an unexpected $1,000 repair. Also, you’re likely to receive service from experienced technicians.
Besides round-the-clock online support or coverage for parts and labor, some extended plans reimburse food losses or laundry expenses if your refrigerator or washer breaks. Downsides include exclusions for owner-caused damage and the possibility that you may never use the coverage if the appliance performs well. Some extended plans offer partial refunds to customers who don’t make claims, and some let you transfer the plan to a new owner when selling a covered appliance.
What Is a Home Appliance Warranty?
Home appliance warranties help cover repair costs for normal wear and tear on household appliances—repairs to mechanical parts that wear out over time. Think of it like an insurance policy (though it’s not technically insurance). You pay a monthly or yearly premium, and when an appliance fails, you receive discounted repair services for covered items.
Retailer Appliance Protection Plans
Which provider offers the best all-around appliance protection? To understand what extended warranties provide and which retailers might have the best deals, we analyzed the options.
Below is a snapshot of extended warranty offerings from four national retailers that sell major appliances and what they include.
(Note: Because some retailers base extended warranty costs on the appliance price, we used a $1,000–$2,000 price range for the examples.)
How Does an Appliance Extended Warranty Compare to a Home Appliance Warranty?
The key difference is cost and breadth of coverage. Appliance extended warranties insure a specific item, while home appliance warranties cover multiple major appliances in your home—your refrigerator, dishwasher, washer/dryer, HVAC, etc. Expect to pay more for a home appliance warranty since it covers a wider array of equipment.
Retailer Appliance Protection Plans
Which warranty provider provides the most comprehensive appliance protection? To find out, we reviewed and compared the extended warranty offerings.
Here’s a summary of extended warranty options from four nationwide retailers that sell major appliances—and what each includes.
(Note: We used a $1,000–$2,000 appliance price range across the examples.)
Best Buy Geek Squad Extended Warranty
This plan protects appliances after the manufacturer warranty ends and can also augment coverage while the manufacturer’s warranty is still active. For example, if an appliance is damaged by a power surge or lightning, Best Buy will repair or replace it. Most new appliance purchases get 24 months of Best Buy Protection for My Best Buy Total™ members.
Cost varies by item.
Benefits:
- 24/7 phone and online support: No
- Food loss reimbursement: Up to $300
- Cost to transfer coverage to a new owner: Free
- Power surge protection: Yes
- Reimbursement on preventative maintenance parts: No
- Payback reward for not using the plan: No
Read here for full details on Best Buy’s extended warranty.
Home Depot Major Appliance Extended Warranty
Home Depot’s extended coverage may reimburse 50% of replacement costs for some cosmetic parts and, after the manufacturer’s warranty ends, offers a two-day service guarantee in select metro areas.
For appliances priced $1,000–$1,499.99: 3-year: $150; 5-year: $225
For appliances priced $1,500–$1,999.99: 3-year: $185; 5-year: $270
Benefits:
- 24/7 phone and online support: Yes
- Food loss reimbursement: Up to $300
- Cost to transfer coverage to a new owner: Free
- Power surge protection: Yes
- Reimbursement on preventative maintenance parts: 50%
- Reimbursement on certain cosmetic replacement parts: 50%
Read more about Home Depot’s appliance protection.
Lowe’s Major Appliance Extended Warranty
Lowe’s plan helps cover reinstallation costs when you need to reconnect an appliance and provides replacement coverage if the unit is defective. Lowe’s also offers annual savings on parts needed for upkeep, such as filters and cleaners, and gives 50% off those items’ purchase price.
For major appliances priced $1,000–$1,499: 3-year: $129.97; 5-year: $199.97
Benefits:
- 24/7 phone and online support: No
- Food loss reimbursement: Up to $300
- Fix within 7 days reimbursement: $50
- Power surge protection: Yes
- Reimbursement on preventative maintenance parts: 50%
- Payback reward for not using the plan: 30%
Read more about Lowe’s extended warranty offerings.
Costco Appliance Extended Warranty
Costco includes some appliance protection as part of the purchase price for members. Membership tiers affect the warranty terms, but basic perks typically include home delivery, installation, quick replacements and haul-away services. Additional protection plans from Allstate can be added.
With a two-year manufacturer warranty, Costco provides a total of five years of coverage when you add their three-year major appliance protection plan.
3-year: $119.99
Benefits:
- 24/7 online support: Yes
- Food loss reimbursement: Yes, amount varies by plan
- Cost to transfer coverage to a new owner: Free
- Power surge protection: Yes
- Reimbursement on preventative maintenance parts: 100% coverage for parts and labor only
- Payback reward for not using the plan: No
Read more about Costco’s appliance protection options.
Home Warranty Plans
A home appliance warranty functions similarly to an insurance policy, and like retailer extended warranties, the specifics vary by provider. Below are a few well-known home warranty companies.
American Home Shield
Ranked among the top home warranty companies by thisoldhouse.com and consumeradvocate.org, American Home Shield was established in 1971 and is known for dependable coverage. The company markets itself as an industry pioneer in home warranties.
- 24/7 phone and online support: Yes
- Price range: $350–$1,100 per year
- Most popular plan: ShieldGold
- Covers preexisting conditions: Yes
- Service fees: Yes
Select Home Warranty
Consumer Affairs-accredited Select Home Warranty partners with a broad network of authorized technicians and assigns a local service professional. The company provides three tiers of protection.
- 24/7 phone and online support: No
- Price range: Starts at less than $1 per day
- Most popular plan: Platinum Care
- Covers preexisting conditions: Yes
- Service fees: Yes
Choice Home Warranty
Recognized by Consumer’s Advocate as a top home warranty provider in recent years, Choice Home Warranty lets you customize coverage to match your household needs.
- 24/7 phone and online support: Yes
- Price range: $560–$660 per year
- Most popular plan: Heavyweight Protection Plan
- Covers preexisting conditions: No
- Service fees: Yes
Alternatives to Home Appliance Protection Plans
If you’d rather skip paying for extended protection but don’t want to leave yourself completely exposed, consider these options.
- Check whether any of your credit cards automatically provide extended warranty benefits.
- Research the best times of year to buy appliances. New refrigerator models often arrive in summer, so May can be a good month to snag last year’s model at a discount.
Which Major Appliance Warranty Suits You?
To choose the right warranty for your major appliances, ask yourself a few questions.
- What does the manufacturer’s warranty cover, and for how long?
- Do I need additional protection?
- Would paying for an extended warranty now give me peace of mind when an appliance eventually fails?
If you can consistently save a modest amount monthly, you might forgo the extra expense and build a dedicated emergency fund instead. Stashing the money in an interest-bearing account can earn a little more, but it requires discipline to set the funds aside.
Finally, consider whether you live in a home with older appliances that are more likely to break down soon. If so, a home warranty could be the right choice for you.
