Debate: Are extended warranties on appliances actually worth it or a total scam?

I keep seeing people in this group recommending extended warranties on every fridge and washer they sell. But in my 8 years repairing stuff in Austin, I've only seen them pay out maybe 3 times for major issues. Most of the time the fine print excludes things like compressor failures or control boards. Am I the only one who thinks they're just a cash grab or do you actually see customers getting value from them? What's your take based on real repair calls?

2 comments

2 Comments

cooper.taylor17d agoMost Upvoted

Well you nailed it when you said 'cash grab' - that's exactly what they are, just with a nicer label slapped on. I bought one for my microwave once and when the door stopped latching they told me it was a 'cosmetic issue' not covered. A door that won't stay shut is cosmetic? I guess food staying cold is just a bonus feature. These companies have entire legal departments writing those exclusions so they can take your money and smile while doing it.

hart.taylor17d ago

Honestly @cooper.taylor that microwave story is brutal but not surprising. Here's an angle I haven't seen anyone bring up yet - these plans are basically betting against yourself. You're paying them upfront hoping something breaks, but they've already done the math on exactly how much they can deny. What gets me is the psychological trick they play. They make you feel smart for buying protection, but the real winners are the companies who collect premiums on stuff that will probably never fail during the warranty period anyway. I worked retail for two years and saw more people buy these plans on toasters and coffee makers than on actual expensive items. The math just doesn't work in your favor over time.