Are Appliance Extended Warranties Worth It?

Home appliance shopping is something some people get excited about. However, it’s easy to drop a significant chunk of money on that new fridge with French doors. Then, as you finalize the purchase and arrange delivery, the store will likely ask if you want to pony up some extra cash for an appliance extended warranty to supplement the manufacturer’s warranty.

But should you spring for the extended warranty or go with a home appliance warranty? And which warranty provider is best?

If you do your research beforehand (i.e., read this article because we did the research for you), you can go to the store armed with an answer.

We explain the differences among a manufacturer’s warranty, a retailer’s appliance extended warranty and home appliance warranties. Here’s what we learned.

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What Is an Appliance Extended Warranty?

An appliance extended warranty is basically long-term insurance for your new appliance. The extended warranty coverage begins when the initial manufacturer’s warranty ends. With most extended terms similar to the initial period, an extended warranty ensures you’re covered long-term. They can be purchased at the time of sale, usually from a retailer, but some appliance manufacturers offer extended warranties that can be purchased later when the initial warranty period is ending.

What Are the Differences Between an Appliance Extended Warranty and a Manufacturer’s Warranty?

The main differences between a manufacturer’s warranty and a retailer’s extended warranty are the providers of the coverage and what the warranties cover. A manufacturer’s warranty generally will only cover replacement or repair if the issues existed prior to the purchase, like a defect. These warranties are also included in the price of the appliance and are usually valid for one year to cover the costs associated with functional parts and labor. Typically, they stipulate that only a manufacturer-approved service can be used to repair an appliance.

An appliance extended warranty offers a wide range of benefits over several years, and, most importantly, peace of mind. So, when the original manufacturer’s warranty expires, you have an extended appliance warranty to fall back on. It is most common to purchase an appliance extended warranty issued by the store selling the item, but manufacturers and third parties also offer these warranties. It could pay to look into other offers to see which is the best option for you.

Pros and Cons of Appliance Extended Warranties

A major pro of appliance extended warranties includes knowing exactly what you will pay ahead of time and being prepared for defects or breakdowns. For instance, you can budget $20 a month to cover your new refrigerator, but it’s much harder to plan ahead for an unexpected $1,000 repair bill if it suddenly stops working. Also, you can rest assured you’ll receive quality service from experienced professionals.

In addition to 24/7 online support or covering the cost of parts and labor, some appliance extended warranty plans will reimburse the cost of food spoilage or laundry services if your refrigerator or washing machine goes on the fritz.

The cons of appliance extended warranties include a lack of coverage for damage caused by an owner and the very real possibility that you won’t need the coverage if your appliance works well. But, some extended appliance warranties partially repay customers who don’t use the plan. Some even allow customers to transfer coverage to a new owner if they sell an appliance covered under a protection plan.

What Is A Home Appliance Warranty?

Home appliance warranties cover partial service costs for normal wear and tear on appliances — things like the repair of mechanical components that might break down over time. Think of it like insurance (even though it’s not). You pay a monthly fee or annual premium, and if (when) your fridge breaks down, you get discounted repair service on that covered appliance.

What Are the Differences Between an Appliance Extended Warranty and a Home Appliance Warranty?

The main difference here is the cost and scope of coverage. With appliance extended warranties, you are paying for coverage of a specific appliance, but home appliance warranties cover all the major appliances in your home — your refrigerator, dishwasher, washer/dryer, heating and cooling systems, etc. You can expect to pay more for a home appliance warranty because it covers more.

Retailer Appliance Protection Plans

Which warranty provider has the best comprehensive appliance coverage? To see what extended warranties have to offer and which stores might have the best deal, we crunched the numbers. 

Here’s a look at the extended warranty options from four nationwide stores that sell major appliances — and what they have to offer. 

Note: Many stores base the cost of extended warranties on the price of the appliance, so check the price of the warranty of your appliance before purchasing.

Best Buy Geek Squad Extended Warranty

Not only does this extended warranty protect your appliances after the manufacturer’s warranty period ends, but it also enhances the coverage you have while the manufacturer’s warranty is still in place. For instance, if your appliance is damaged from a power surge or a lightning strike, Best Buy will fix it or replace it. You’ll get 24 months of Best Buy Protection on most new appliance purchases when you’re a member of My Best Buy Total™.

Cost depends on item.

Benefits:

• Food loss reimbursement: Up to $300
• Cost to transfer coverage to a new owner: Free
• Agents available 24/7 online

Read here for more details on Best Buy’s extended warranty.

Home Depot Major Appliance Extended Warranty

Home Depot’s extended warranty even covers 50% reimbursement for the replacement costs of some cosmetic parts, premium tech support for smart appliances and a two-day service guarantee for major appliances in certain metro areas.

Benefits:

• 24/7 phone and online support
• Food loss reimbursement up to $300
• Cost to transfer coverage to a new owner: Free
• Power surge protection
• Reimbursement on preventive maintenance parts: 50%
• Reimbursement on certain cosmetic replacement parts: 50%

Read more about Home Depot’s appliance warranty.

Lowe’s Major Appliance Extended Warranty

Lowe’s covers the cost of food loss and doesn’t charge service fees. It also offers 30-day free access to unlimited tech support if you purchase a protection plan for your smart appliance.

Benefits:

• Food loss reimbursement up to $300
• Power surge protection
• Reimbursement on preventive maintenance parts: 50% up to $100
• Payback reward for not using the plan: 30%

Read more about Lowe’s extended warranties.

Costco Appliance Extended Warranty

Costco has two ways you can get extended warranties on products: through Allstate Protection Plans and a two-year extension of the manufacturer’s warranty on certain products. Those products include TVs, projectors, computers and major appliances. Combing the two can get you up to five years of coverage.

Benefits:

• Food loss reimbursement (amount depends on the plan)
• Cost to transfer coverage to a new owner: Free
• Power surge protection

Read more about Costco’s extended warranties.

Home Warranty Plans

A home appliance warranty is similar to an insurance plan, and just like retailer extended warranties, it will vary depending on the coverage details of the different home warranty providers. We’ve rounded up a list of some of the best home warranty companies.

American Home Shield

Rated in the top home warranty companies by thisoldhouse.com and consumer advocate.org, American Home Shield was founded way back in 1971. The company offers customers reliable coverage. They claim to be the founders of the home warranty industry.

• Most popular plan: ShieldGold, covers heating/AC, electric, plumbing as well as kitchen and laundry appliances
• Video chat with live repair experts
• Partner discounts

Select Home Warranty

Home warranty provider Select Home Warranty works with an impressive network of authorized service technicians and assigns you a local professional. It offers three levels of warranty protection.

• Most popular plan: Platinum Care, covers heating/AC, plumbing, refrigerator and washer
• Opens claims 24/7
• Service fees: Yes

Choice Home Warranty

Recognized by Consumer’s Advocate as a top-ranked home warranty company in 2022, 2023 and 2024, Choice Home Warranty allows you to tailor your home appliance warranty to your needs.

• 24/7 support
• Nationwide network of thousands of contractors
• Handled more than 3 million claims

Alternatives to Home Appliance Protection Plans

If you’re ready to skip the expense of an extended protection plan but don’t want to entirely fly by the seat of your pants and hope your appliances never break down, you’ve got some alternatives.

• Check your credit cards to see if any of them offer extended warranties as a standard benefit.
• Do some research to find out the best time of the year to buy an appliance. New refrigerator models hit the stores in the summer, so May is a great time to score a deal on last year’s model.

Which Major Appliance Warranty Is Right for You?

To decide which warranty provider is the best choice for your major appliances, ask yourself a few questions.

• What does the manufacturer’s warranty cover, and how long will my new appliance be covered? 
• Do I need more coverage?
• Will paying upfront for the extended warranty give me peace of mind when my appliances inevitably break down? 

If you are able to save some money every month, you could forgo this expense in favor of a rainy day fund. Parking the money in an interest-bearing savings account earns you a bit of extra cash, but you’ll need to be diligent about setting those dollars aside.

Now, ask yourself, “Do I have a house with older appliances that are likely to break down in the next few years?” If yes, a home warranty might be right for you.

Contributor Veronica Leone Matthews is a North Carolina-based freelance writer with 11 years of experience writing for nonprofits and higher education. She covers lifestyle topics for The Penny Hoarder. Former staff writer Lisa McGreevey and freelancer Kent McDill contributed.