What Do Service Providers Say About Extended Service Plans?

By: Jeff Hatch

June 01, 2018

Regular maintenance can help keep your appliances running at their very best. But it’s just part of the equation. What do you do when the inevitable happens and the refrigerator or HVAC system that you depend on every day eventually breaks down? As a backup plan, numerous service technicians suggest that you look into an extended service plan (ESP) as a way of saving time and money on repairs – and making sure that your home appliances not only run right, but last.
 
So when is an ESP worth it? It depends on how much your products cost and what their value is to you. A good rule of thumb that a lot of service providers abide by is that an extended service plan is definitely worth the money if you’re purchasing an appliance that costs more than $500.
 
For higher-end items it makes the most sense. You should view these purchases not as products, but as investments that you plan on protecting to the best of your ability.
 
Another consideration is the manufacturer’s warranty. You might already be covered, but for how long? Most OEM warranties last anywhere from three months to a year when the appliance is still new. However, a service plan extends your coverage by offering additional protection when your item is older and you’re more likely to need it.
 
That brings us to product reliability. Several of our service providers have pointed out the intricacies of today’s appliances, which rely more on computer boards and electronics, and are built differently than they were some 20 to 25 years ago. The need for extended service plans weren’t as great then, but when you consider that today’s parts can run as high as $300 an ESP makes a lot more sense.
 
Also keep in mind that the average repair for a washing machine can run anywhere from $150 to $500 and eat through your budget pretty quick. For an oven/range, it’s even worse and could end up costing you between $400 and $700.
 
A service plan is designed to protect you from absorbing those high repair costs. And most repairmen will tell you that one service call alone can more than pay for the price of having an extended service plan, making an ESP worth it to you.  
 
Have questions about one of our extended service plans? Don’t hesitate to contact us. Visit warrantech.com, call 800.833.8801 or send us an email at
info@warrantech.com. We’re happy to help!

Filed Under: appliances, cost, maintenance, plans, repair, service, Warrantech