Is washing machine breakdown cover worth it?
The choice of whether or not to take out home appliance insurance coverage is one that has proven to be divisive throughout the years. On the one hand, its advocates claim that it's a worthwhile investment as you'll be covered in the event of any problems. While on the other hand, its detractors proclaim it as a waste of your precious resources, often costing more over a period of years than a replacement item would be.
Today, we're going to take a look at whether or not washing machine breakdown cover is something that you should invest in.
The first thing you need to consider is the length of the manufacturer warranty. In most cases, you should find that your warranty covers you for around three years from the date of purchase. While this warranty won't cover you for everything dedicated insurance will, it is still fairly comprehensive and will ensure that you are covered for any mechanical problems that arise within the stated term.
When you look at the cost of many appliance insurance policies, you can expect to pay somewhere in the region of £100-150 per year. While that might not sound like much when you consider that your washing machine may have cost you a lot more, when you add that up over the first three years of ownership where you already have the manufacturer warranty you're looking at somewhere between £300 and £450. That's not a small amount of money.
If your washing machine cost £450 or less, you'll actually be paying out a sum equal to the value of the machine for three years worth of insurance. Should your machine break down in that time, and the warranty doesn't cover it, it would cost you the same (or less) simply to buy a new machine outright.
By doing the simple maths behind this, you'll find that it's not particularly beneficial for you to have insurance for your washing machine during that time period. When your warranty runs out however, it may become a good idea.
What we would suggest is taking a good look at the terms and conditions of your manufacturer warranty, and then taking a look at some of the washing machine breakdown cover policies available before weighing up any potential benefits versus financial outlay to see whether or not it makes sense for you.
For most people, having insurance while your warranty is active is a complete waste of your money, although this depends on how much you spent on your washing machine in the first place.