Should you get a protection plan for your appliance? Learn the pros and cons

Appliances are an essential part of our daily lives. When they break down, it can create a major disruption in your household. The cost of repairs and replacements can quickly add up, perhaps leaving you wishing you could go back and reconsider a protection plan. 

We get it. When you’re buying a costly appliance, you may not want to spend even more money on protection. While some homeowners swear by the additional coverage and peace of mind these plans provide, others argue that the cost outweighs the benefits. So, how do you know for sure that an appliance protection plan is worth the investment? 

Here are the pros and cons of protection plans, so that the next time you go shopping, you can make the right decision for you.

How do appliance protection plans work?

Typically, appliance protection plans offer coverage for repairs and replacements in case of damage, breakdown, or malfunctions. When an appliance the plan covers requires maintenance, the owner can file a claim with the plan provider. Then, depending on the terms and conditions, the provider will either schedule a service call with a technician or replace the appliance entirely. 

What are the pros of appliance protection plans? 

Appliance protection plans offer several benefits for homeowners. 

Convenience

Broken appliances can be a hassle. If you have an appliance protection plan, you get access to qualified technicians and repair services, saving you the time and effort of finding reliable professionals on your own. To make things even easier, many plans also offer priority service and guaranteed quick response times. 

Budget-friendly

The cost of unexpectedly having to repair or replace an appliance can make a big dent in your monthly budget. For as little as $1 a day, an appliance protection plan works like a safety net against unexpected breakdowns, keeping you from bearing the total cost when things go wrong. Rather than dealing with a broken washer until you can afford a repair, you can get help after paying a smaller service fee. 

Coverage for multiple appliances

Go ahead and count every appliance in your home—no worries, we’ll wait. Now imagine having to pay for an individual warranty for each item. The cost—not to mention the hassle—would add up quickly.

If you have a household of many—people or devices—things will likely break at a faster rate. Many plans offer coverage for various household appliances, including refrigerators, washers, dryers, ovens, and more, letting you protect multiple items under a single plan.

Extended lifespan

Many appliance protection plans also offer regular maintenance and service as part of the package, which helps to keep your appliances working as they should for a longer time.

What are the cons of appliance protection plans? 

While the pros of an appliance protection plan are clear, there are also some things to consider that may not make a service contract right for you:

Added cost

The biggest barrier to entry for many is ‌cost. Depending on your budget, an extra monthly fee might not be feasible even if it’s less expensive than one appliance repair. If the appliance is also one that isn’t likely to need repairs, it may not make sense to buy a protection plan.

Limited coverage

Some plans may have specific exclusions or limitations on coverage, such as cosmetic damage or certain types of repairs, which could lead to unexpected out-of-pocket expenses. 

Overlapping coverage

In certain cases, the warranty provided by the manufacturer may already cover repairs and replacements, making the extra coverage offered by the appliance protection plan redundant and unnecessary.

Unclear policies

Some plans might come with binding contractual obligations, including specific terms and conditions that could be challenging to understand or navigate, potentially causing you confusion or frustration.

Yet another account

Maybe another account isn’t something you want to deal with. Keeping track of your insurance, individual device warranties, receipts, and expiration dates is a hassle. Look for appliance protection plans that offer coverage for multiple appliances, with no need for holding on to receipts. 

Should you get a protection plan for your appliances?

If you like the idea of‌ paying out of pocket if your smart refrigerator’s touchscreen gives out or when your oven’s heating element needs to be replaced, you can skip protection entirely. 

If you’d much rather use that money to upgrade your home or get that new gaming console, a protection plan could come in handy. When weighing whether a protection plan is for you, consider: 

1. Do you have a lot of appliances–big and small–at home? 
2. Do you have “high-use” items (think washer and dryer) that'll cost a lot to repair or replace?
3. Does your insurance policy have stipulations that rule out common occurrences, like appliance wear and tear?

Keep in mind, in most cases, home or renter’s insurance is not the same as a comprehensive protection plan. Each has its own fine print about what’s covered and what qualifies as a claim, so be sure to read the terms and conditions.