For most appliances, extended warranties are not worth the money. Repair costs often land close to the price of the plan, and many appliances never need service during the coverage period. A plan can still make sense for costly, complex appliances, or when it adds real benefits like labor coverage, no deductible, and solid in-home service.
- Consumer Reports says extended warranties are not worth the extra money in nearly every case for appliances and electronics.
- Large-appliance plans average $126, and repairs cost only about $26 more without a plan in that analysis.
- A plan fits best on high-priced, feature-heavy appliances, not basic models.
- Many retailer plans are service contracts, not true warranties, so the fine print decides everything.
- Check Costco’s built-in second-year coverage and your credit card benefits before you pay for anything.
- What an Extended Warranty Really Is
- Are Extended Appliance Warranties Worth It in General?
- How Much Do Plans Cost?
- The Break-Even Math
- Refrigerator, Washer, Dryer, or Dishwasher?
- What a Plan Covers and What It Skips
- Costco vs. Lowe’s
- Why People Regret Buying Plans
- Questions to Ask Before You Buy
- Alternatives to a Plan
- Frequently Asked Questions
What an Extended Warranty Really Is
Your appliance already comes with a manufacturer warranty. It is usually one year and covers defects. An extended warranty adds time after that. The FTC explains that an extended warranty or service contract is sold separately from the product, and it can overlap with coverage you already have.
Here is the catch. Most plans sold at the register are service contracts. They are a separate agreement with their own rules, limits, and claim steps. A true warranty comes from the maker. A service contract often comes from a third-party company. That difference affects who fixes your machine and how fast.
Are Extended Appliance Warranties Worth It in General?
Usually, no. Consumer Reports advises steering clear of them in nearly every case for appliances and electronics. The reasons are simple. Most appliances work fine through the plan period. When one breaks, the repair bill is often not far above what the plan cost.
Service quality is another issue. In a Consumer Reports appliance survey, 17% of people with warranty repairs said the repair took an unreasonable amount of time. Only 9% said the same about out-of-pocket repairs.
How Much Do Plans Cost?
Consumer Reports found an average of $126 for large appliances and $21 for small ones. ConsumerAffairs reports that some appliance plans run about $25 to $50 per month, or $300 to $600 per year. Those higher figures usually point to whole-home bundles, not a single washer plan.
The Break-Even Math
The test is easy. A plan pays off only if the repair you avoid costs more than the plan, and only if the appliance actually breaks. Multiply the repair cost by the odds of needing it. If that number is below the plan price, you are paying extra for peace of mind.
| Appliance | Example Price | Example Plan Cost | Example Repair | Verdict |
|---|---|---|---|---|
| Basic dishwasher | $600 | $100 | $200 | Skip. You would need a failure plus a bigger bill. |
| Top-load washer | $800 | $126 | $180 to $250 | Skip. Repair is close to plan price. |
| French-door refrigerator | $3,000 | $250 | $500 to $900 | Maybe. Sealed-system or board failures are costly. |
| Built-in or smart suite | $5,000+ | $400+ | $800 to $1,500 | Consider it, if labor and no deductible are included. |
These are illustrative figures built to show the method, not quotes. Plug in the real plan price and a local repair estimate before you decide.
Should You Buy One for a Refrigerator, Washer, Dryer, or Dishwasher?
The answer shifts with the appliance. Here is how it breaks down.
If the appliance costs under about $1,000 and has simple controls: skip the plan. Save the plan money for a repair fund.
If it is a dishwasher or dryer: skip it in most cases. Parts are cheap and repairs are common DIY jobs.
If it is a washer with a control board and motor: lean toward skipping, unless the plan is cheap and has no deductible.
If it is a high-end refrigerator, a built-in unit, or a smart model: a plan is worth pricing out. Sealed systems, compressors, and electronic boards cost more to fix.
The same logic answers whether extended warranties on kitchen appliances are worth it. Basic ranges and dishwashers rarely justify a plan. A $4,000 counter-depth refrigerator with a touchscreen is a different case.
What a Plan Covers and What It Skips
Read these points before signing:
- Parts and labor: Some plans cover both. Others cover parts only.
- Deductibles and fees: A per-visit fee can erase the savings.
- Exclusions: Cosmetic damage, food spoilage, misuse, and improper installation are common.
- Overlap: Many plans start on day one, so you pay for time the manufacturer already covers.
- Repair or replace: The company often picks, and a replacement may be a lower-tier model or a cash payout up to a set limit.
- Service network: Who comes to your home, and how long you wait for a visit.
From the Shop
A common complaint in buyer reviews is not a denied claim. It is the wait. People describe going days or weeks without a working refrigerator or washer while a third-party servicer orders a part. A cheap out-of-pocket repair from a local tech can be faster.
Costco vs. Lowe’s
These two retailers handle coverage differently, so treat them separately.
Is Costco Extended Warranty on Appliances Worth It?
Start with what Costco gives you free. According to Costco’s warranty support page, it extends the manufacturer’s warranty on qualifying major appliances for up to 2 years from purchase or delivery. Costco may choose repair, replacement, or a refund up to the purchase price. That covers much of the early risk at no cost.
Paid options exist too. Costco’s appliance protection plans advertise 100% parts and labor, no deductibles or hidden fees, and online claims. One 3-year option applies to major appliances under $1,000. For most buyers, the free second year makes a paid plan hard to justify on mid-priced items.
Is Lowe’s Extended Appliance Warranty Worth It?
Check the exclusions first. Lowe’s Protection plan pricing says coverage begins after the manufacturer warranty ends. It applies to built-in major appliances. It excludes refrigerators, freezers, and several other categories. So the appliance most people worry about may not qualify. Confirm your exact model before you pay.
| Feature | Costco | Lowe’s |
|---|---|---|
| Built-in extra coverage | Up to 2 years on qualifying major appliances | None noted; plan starts after manufacturer warranty |
| Paid plan | Parts and labor, no deductible advertised | Built-in major appliances |
| Notable exclusions | Check plan terms for your item | Refrigerators, freezers, and others |
| Claims | Online claims offered | Per plan terms; verify before buying |
Why People Regret Buying Plans
- The appliance never broke, so the money was wasted.
- The claim was denied for an exclusion they did not read.
- The repair was slow.
- The plan overlapped with the manufacturer warranty or a credit card benefit.
- The replacement was a lesser model.
Questions to Ask Before You Buy
- Is this a manufacturer warranty or a third-party service contract?
- Does coverage start after the existing warranty ends?
- Are parts, labor, and travel all covered?
- Is there a deductible or per-visit fee?
- Can I cancel for a refund?
- Who does the repair, and how long do they take?
- Is the plan transferable if I sell the home?
- Do I already have coverage through my credit card or retailer?
If you cannot get clear answers, walk away. Consumer Reports’ buying guide also helps you weigh the terms.
Alternatives to a Plan
- Self-insure: Put the plan price into a savings account each year. You keep what you do not spend.
- Use credit card protection: Some cards extend manufacturer warranties. Check your card terms.
- Buy reliable models: Fewer electronics usually means fewer costly failures.
- Use the free coverage: Register the product and note the end date on your calendar.
Frequently Asked Questions
Are extended appliance warranties worth it?
Usually not. Consumer Reports found repairs cost only about $26 more without a plan than the average plan price. They can be worth it on expensive, complex appliances with good terms.
Should you buy extended warranty on appliances?
Only if the appliance is costly to fix, the plan covers parts and labor, and the deductible is low or zero. For basic models, skip it and save the money.
Are extended warranties on kitchen appliances worth it?
Rarely for dishwashers and basic ranges. A high-end refrigerator or built-in unit has a stronger case because repairs cost more.
Is extended warranty on appliances worth it for a refrigerator?
Sometimes. Sealed-system and board repairs can be expensive. But some retailers, like Lowe’s, exclude refrigerators from certain plans, so check first.
Is Costco extended warranty on appliances worth it?
The free coverage of up to 2 years on qualifying major appliances handles most early problems. A paid plan only makes sense for pricier items, or if you want longer protection with no deductible.
Is Lowe’s extended appliance warranty worth it?
It depends on the appliance. Coverage starts after the manufacturer warranty ends and applies to built-in major appliances. Refrigerators and freezers are excluded, so many buyers will not qualify.
Is extended appliance warranty worth it compared with saving the money?
For most households, saving the plan price in a repair fund comes out ahead. A plan wins only when a single big repair would hurt your budget and the terms are strong.
