Is washing machine breakdown insurance good value for money?
Washing machine breakdown insurance is a type of appliance insurance policy that includes extended warranties and is often offered to customers by sales assistants when they purchase a household appliance such washing machine.
Appliance insurance usually includes a warranty of between 3 to 5 years for an extra payment. However the question many people ask themselves is ‘is washing machine breakdown insurance good value for money?’ But unfortunately the answer is not a straight forward yes or no and it is often down to personal opinion and peace of mind. However we have some interesting facts to help you decide whether you feel appliance insurance is worth it:
Interesting statistics from the UK Office of Fair Trading in October 2008 showed that 68% of consumers of electrical goods purchased extended warranties and only 3% of consumers were aware that they had a 45 day cancellation right on all of these extended warranties, providing customers with a full refund of their insurance cost. When it comes to taking out appliance insurance it is up to the individual in question to decide whether the peace of mind is worth the cost of the insurance policy that is sold to them at a profit.
The cost of the appliance insurance has been carefully calculated by the retailer and the insurance company based on the likely lifetime and failure rate of the appliance. This cost ensures that there will be an overall profit for the retailer as well as the insurance company.
However for appliances such as washing machines the same day repairs that are available with the appliance insurance can make the payment premium worthwhile, but this is an entirely personal decision and there is no right or wrong answer when it comes to answering the question ‘is washing machine breakdown insurance good value for money?’