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Are Extended Appliance Warranties Worth It?

Updated: Mar 1, 2023


home appliance shopping
Home appliance shopping

When you reach a certain age, home appliance shopping is something to be excited about. It’s easy to drop a significant chunk of money on that new fridge with french doors, and it’s really rather odd how delighted you can be over a standard household appliance.


As you finalize the purchase and arrange delivery, the store will likely ask if you want to dish 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?


Here are the differences between a manufacturer’s warranty, a retailer appliance extended warranty, and a home appliance warranty.


What Is an Appliance Extended Warranty?

The main differences between a manufacturer’s warranty and a retailer’s extended warranty are who provides 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. 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.

An appliance extended warranty is issued by the store selling the item and offers a wide range of benefits over several years. So, when the original manufacturer’s warranty expires, you have an extended appliance warranty to fall back on.


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

Some extended appliance warranties also partially repay customers who don’t use the plan or allow customers to transfer coverage to a new owner if they sell an appliance covered under a protection plan.


Home warranties cover partial service costs for normal wear and tear on appliances — things like 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 covered appliances.


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

Select Home Warranty

Choice Home Warranty



Retailer Appliance Protection Plans

Best Buy Geek Squad Extended Warranty

Home Depot Major Appliance Extended Warranty

Lowe’s Major Appliance Extended Warranty

Costco Appliance Extended Warranty


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 appliance never breaks 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 you peace of mind for when your appliances inevitably break down?

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.


We hope you found this information helpful.


T&C Appliance/HVAC Repair Durham- Chapel Hil

We do not work with warranty company's; we work with homeowners directly.

It is up to the homeowner to get reimbursed from their warranty company of choice. However, we will provide the necessary documents required for reimbursement.

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