APPLIANCE INSURANCE COVER

[par1sons]

Does anybody know of an insurance company which covers against appliance breakdowns etc. I know a few used to do it but they have stopped the cover probably because they were losing to much money. Can anybody direct me in the right way. The insurance needs to cover such things as, LCD, Oven, Fridge, freezer, etc.

Cheers

AndyP

 

[Sleepyhead]

British Gas do a package for Kitchen Appliance Care.
Don't know anyone that does an aftermarket for brown goods though.

 

[JohnD]

It usually works out better value to put the money in a sock under the mattress. If you have an appliance break down, decide whether to take enough money out of the sock to have it mended, or to buy a new one. If it breaks down more than once in five years, throw it away and buy a new one.

The insurance companies have a much bigger sock, out of which they take their expenses, wages and profits, and spend what is left on repairs.

If, instead of a sock, you put the money every month into a Tax Free, High Interest, Cash ISA, you can expect to end up with plenty to pay for a newer and better appliance when the old one is worn out, with some money left over.

 

[LondonRay]

To answer your question you can get cover for items up until they are 8 years old from Warranty Direct

http://www.warrantydirect.co.uk/h_default1.html?

it'll cost about £4 per item per month and has an excess of £25

Although personally like John I wouldn't, if you feel the money is worth it for peace of mind do make sure you read the policy exclusions first so you know EXACTLY what you're covered for.

Also I'd NEVER EVER buy one from the shop when you buy the goods, only about half (if that) of what you pay reaches the insurer [the rest is taxes (12.5% more if you buy it that way) and commission to the shop etc].

 

[freddiemercurystwin]

Totally agree with JohnD and LondonRay, shops make a bundle on extended warranties.

 

[JohnD]

I have heard that Dixons and Curries profits for the whole year are about the same as their profits from selling Extended Warranties - that's where they make their money. So they're very keen to persuade you to sign up

"Please buy this machine - it's really good"

"Thanks"

"BTW it's very unreliable and will keep breaking down. You'd best cough up half the price of a new one to cover you""

p.s. I hear that John Lewis do then at very good value when you buy an appliance from them.

 

[LondonRay]

Funniest one I had was someone trying to sell me a £15 EW policy for a £23 iron !

To add to John's point, when EW insurance was reffered by the OFT to the European Competition Commission, one of the biggest objectors was the Dixons Stores Group, which said referring the market to the Competition Commission was "inappropriate", "unjustified" and "misdirected".

Draw your own conclusions.....

 

[sandwell]

Extended warranties can seem to be a rip off, but it depends on one's personal circumstances.

If you know a reliable local repair man, that is fine, but sometimes the people advertising in local papers are not cheap or reliable.

I have a friend who has had quite a bit of trouble with a washing machine, and she is thankful that she had the extended warranty. Several faults developed outside the 12 months guarantee period, and so she would have incurred quite a bit of expense.