What happened the last time you bought any appliances for use in your kitchen?
The chances are that the store assistant serving you followed up the sale with an enthusiastic offer of an “extended warranty” or “service plan”.
As ever, the problem with a hard sell is that you might feel pressurised into buying cover which you do not need or into buying it at a less than competitive rate.
The Association of British Insurers (ABI) points out that you do not need to buy either an extended warranty or appliance insurance at the same time and from the same store as the point of purchase.
Indeed, the ABI makes the point that by delaying any such purchase, you may give yourself more time to think and, critically, more time to compare the kitchen appliance insurance you are buying.
What needs to be taken into account when making such a comparison?
- one of the first things to establish is whether you are being offered a service and repair plan or a genuine appliance insurance contract – there is a great deal of difference between the two;
- kitchen appliance insurance – such as that sold by KAPUT– gives you the full protection that you enjoy with any other purchase of insurance, namely regulation and authorisation of the sale by the Financial Conduct Authority, together with the backing and reassurance of the Financial Conduct Authority Compensation Scheme in the event of unresolved problems with the insurance later on;
- if your appliance breaks down and you need to claim for its repair, is this done promptly, with no further call-out charge, parts, labour or excess to pay – that is typically the case with some appliance insurance policies, but you may find yourself paying additional charges for an emergency call-out (if it is provided at all) under a service plan;
- it is also worth examining what happens in the event that your appliance has broken down beyond repair – a good warranty insurance policy is likely to replace the item or make a significant contribution towards its replacement, a service plan might simply offer to return the cost of the plan;
- service plans typically cover the single appliance for which it is designed, warranty insurance, on the other hand, may extend to a whole package of different domestic appliances – you might want to establish, therefore, just how many items you may include in your insurance policy;
- clearly, this is a factor which is likely to have a direct bearing on the price you may – the more you cover, the cheaper the insurance is likely to work out on each appliance.
Before buying kitchen appliance insurance, therefore, there are a number of factors you might want to take into account when comparing the different policies available.