The joy of owning a brand new appliance can quickly sour when all of a sudden, something goes wrong and the appliance breaks down. Obviously, this is a disaster and is very disheartening. But, let’s face it. New or old, things just break. Whether it’s that brand new refrigerator or the washer. Either way, you’re left without the use of it and things around the house can get a little strained. Of course, the last thing you want to worry about is how much the repair will cost.
Service agreements are worth it
No one has to tell you how frustrating and downright irritating a broken appliance can be. The darn thing always breaks down when company is over, or you need a certain thing washed. One way to help in that regard to help restore your peace of mind is knowing that your appliance repair won’t cost you next week’s paycheck to get you up and running. The answer is purchasing a service agreement when you buy your new appliance. Some say they’re simply not worth the money. That might have been true 20 years ago, but not anymore. That’s because appliances made today require more frequent and costly repairs. It’s a fact of life with appliances. Luckily, the cost of service agreements hasn’t risen as fast as the cost of repairs. This is presumably due to the formula warranty companies use to calculate agreement prices. They consider the population of your particular machine, the number of repairs over time and the retail cost, to name a few. This usually correlates to reasonable agreement prices.
An average service call for a front load washer today costs approximately $250 on the low side, but the cost of a service agreement might cost slightly less for a full year of coverage. Depending on who provides the agreement, it’s very likely you will receive total, “bumper-to-bumper” coverage, so to speak. As you can see, one service call paid out-of-pocket can pay for a full year of service protection. It’s true that sometimes your machine may not experience a breakdown during the life of the service agreement, causing you to believe that the agreement was a waste of money. This is where the naysayers stake their claims about why service agreements are just extra profit for the warranty companies. The obvious advantage of a service agreement means no unexpected repair costs, but just as important is knowing exactly how much service on your appliances will cost year-to-year. Additionally, it takes only one or two major repairs on appliances to justify several years of coverage with a service agreement.
Parts and labor are covered
Not all warranty companies are created equal, especially in the appliance service industry. Several companies give you the option of having a zero deductible to pay at the time of repair, while others require up to $100 or more per visit by the repairman. But the big upside is that once the deductible is paid, all parts and labor are covered, including the trip charge. In every case, however, save yourself from unpleasant surprises and read over the contract before you sign it. Most companies will limit the dollar amount of the repair, and any excess must be approved before the repair is made. As it is up to the warranty company to approve the repair, they may require you to pay the difference over the pre-approved limit or might even give you credit toward a new machine. This is not guaranteed, however. This is why you must read over the agreement first.