What Are the Pros and Cons of an Appliance Protection Plan?

Depending on the extent of coverage, most appliance protection plans offered by retailers can help consumers cover the cost of sudden and immediate repairs. Many retailers work with local repair shops that schedule and make repairs on-site, a convenience for consumers. One the other hand, many protection plans feature specific warranty coverage timeframes; after the warranty period ends, consumers typically have to pay for repairs out-of-pocket.

Before purchasing an appliance protection plan, consumers should review the appliance manufacturer's warranty. The warranty may provide the same or similar coverage as the protection plan. An appliance manufacturer may also replace an appliance or pay the repair costs if a known malfunction occurs, even after the warranty has expired. Consumers should also contact credit card companies as some offer free extended warranty protection plans for specific purchases.

Appliance protection plans can offer peace-of-mind for some consumers. When considering an appliance protection plan, consumers should research the average life span of appliances along with common repair issues and repair costs. In the long run, appliance durability combined with the cost for minor repairs may end up costing consumers less than the protection plan. Consumers should also research appliance protection plans offered by retailers to determine if other consumers have reported poor repairs or long waiting periods for repairs, as these issues can negate peace-of-mind.