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Squaretrade vs. Store Extended Warranty for Washer/Dryer

bluedevils 5,167 1,334 March 15, 2011 at 07:53 AM
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Last Edited by bluedevils March 15, 2011 at 12:35 PM
Trying to decide whether to go with the Lowe's extended warranty on a new washer/dryer or Squaretrade instead.

I'm looking at the total 5 years of coverage.

Lowe's 4 year warranty $180 for both starts after manufacturer's 1-year warranty ends. 5 years total coverage. $180 for both washer and dryer (bundle discount in store but don't see it working online; or $110 each) - not bad.

Squaretrade.com 5 year warranty $140 for both with 30% off code MARCH ($100 each minus 30% = $70 each). Coverage starts on date of purchase, i.e. 5 years total coverage.

Washer/dryer were purchased with a Lowe's gift card (to get the 10% Tax GC bonus), so I'm not eligible to get a 2nd year of coverage from my credit card company.

I haven't read the fine print yet on the Lowe's protection plan / warranty; definitely need to do that soon. So far, here are my thoughts:

Lowe's Pluses:
* Feel better about dealing with a local store where the units were purchased. This may be a false assumption of getting better customer service.
* Squaretrade has a max warranty coverage amount and that scares me if the unit requires more than 1 repair and you could end up stuck with a broken machine and no more coverage to fix or replace it.

Squaretrade Pluses:
* Lower price, especially if you can get a 40% or 50% off code.
* Less hassle? Squaretrade seems to replace or refund purchase price in many cases where an item is broken or the repair would be too costly or tricky. But how are they in dealing with washer/dryers? I haven't seen hardly anything on the net discussing this.
* I like the idea of getting a replacement / refund via Squaretrade instead of having Lowe's send out a 3rd party technician several times and not really fix the problem. I've heard horror stories where people have an inoperable washer or dryer for weeks at a time because the store (Sears, Lowe's, Home Depot, Best Buy, etc) doesn't care about actually getting the customer's unit up and running. I would hate to find myself in that situation and have no recourse.


From Squaretrade FAQ
[squaretrade.com]. "If my item breaks, where will I have to send it?"

If our Warranty Service Specialist determines that your item needs to be replaced or that estimated repair costs exceed the value of your coverage with us, you will receive reimbursement of the current item replacement value (less the cost of any previous repairs made under our coverage).

So if I buy a $500 washing machine and a 5 year Squaretrade warranty on it, and 6 months later the washer is repaired and Squaretrade says the repair cost was $200 (but you paid nothing since it was covered under warranty), THEN 3 years later the washer has another problem and the technician says the washer needs to be replaced (not fixable, or repair cost too high etc)...Squaretrade will reimburse me only $300 since 'that is all the coverage left on your warranty' ???

That's how I interpret it and it is a little bit worrisome. I'd expect that if my washer breaks down and is repaired, then breaks down again and needs another repair or needs replacing, that the warranty would cover all of it, NOT reach a maximum value and offer no further coverage.

Also found this on the "How does your coverage work with my manufacturer's warranty" question on the FAQ page:

If you have an issue while the Manufacturer’s Warranty is still in effect, we’ll help you by providing their contact information (if available) - saving your SquareTrade policy for its entire (and far longer) term... essentially giving you two bites at the cookie.

That seems to mean that there definitely *is* a max payout on a Squaretrade warranty.

Guess I need to read the fine print on the Sears/Lowe's/Best Buy extended warranties. I can't imagine they have the same kind of restriction/limit.
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#2
yeah, I'd definitely read into the fine print. I'm usually a ST advocate just as much as I'm a SD advocate. However, in this situation, I'd be in the same boat as you trying to figure out the pro's and con's. I couldn't agree more with everything you've stated.

Here's some food for thought... I used to work for Geek Squad, and if things are the same as they used to be, you can actually get a warranty through Best Buy as long as the exact model shows in the "Star Phoenix" system (helps to have a Best Buy SKU, but isn't necessary), and the purchase has been less than 30 days, if I'm not mistaken. I could be wrong on the terminology, and that could've changed from what it used to be, as well. But yeah, if the T's and C's are better with the "Black Tie" protection program, you might want to go with that. Not to mention, they might even price match the combo to get your business... Highly doubtful they'll price match on the warranty side of things, though. It's possible Sears might do the same, too. Reading on these SD forums, it seems that it's a little less work to get Sears to PM as much as BBY. Either way, you never know unless you ask.

Hope this helps.
:-)
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#3
anybody else? I'll report back once I've read through the fine print on the Lowe's extended warranty. Really was hoping for some feedback from fellow SDers.
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#4
I'd make sure Lowe's doesn't have a similar provision in their Ts&Cs, and I know I'd rather deal with SquareTrade than Lowe's (since their coverage is almost certainly administered by a third party who you won't be able to yell at in person!).
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#5
I know your question was "which warranty to buy" but I figured if you are looking for opinions - I would give you my two cents.

I never buy warranties. Ever. Instead I self insure by maintaining an adequate emergency fund. This fund can be tapped to repair or replace things that may have problems. If you add up the amount of money you spend on warranties and, instead of buying the warranty, put that money in an emergency fund, you will always have adequate funds to cover your own repairs. And, since the vast majority of things don't break, you will be much better off in the long run.

Warranties are the highest profit margin thing that stores sell. They make money hand over fist by selling these things. Thats my two cents Smilie
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Last edited by smass March 17, 2011 at 11:59 AM
#6
thanks OP
wanted a washer, so looked into lowe's EPP

Major Appliance Extended Protection Plan (Items $200 and above)
Benefits include:
4 and 2 years worth of coverage available
100% parts and labor coverage
• 5-year coverage on major components — compressor/transmission (4-year plan only)
• Up to $250 in food spoilage protection from day one on refrigerators and freezers
In-home service by pre-screened, authorized technicians
• Rental reimbursement on refrigerators and freezers (4-year plan only)
• Covers re-installation costs
Power surge protection begins date of purchase
• No Lemon Guarantee—if your product requires more than 3 repairs for the same problem, we'll replace it
• Transferable, at no charge, to a new owner


Eligible Products: Freezers, dishwashers, over-the-range microwaves, room air conditioners over $400, washers, dryers, refrigerators, ranges and more

Terms and Conditions
Benefits begin, unless otherwise stated above, with the expiration of the manufacturer's warranty and extends for the remaining life of the plan

No hassles,
no deductibles,
no hidden fees!

No Lemon Policy—if your product
requires a fourth qualified repair for the same
major failure (within a 12 month period), we’ll
replace it with a new, rebuilt or refurbished
product of equal or similar features and
functionality, not to exceed the original purchase
price of the original Product



the unexpected does
happen, your product will be repaired or replaced

If on-site service is provided for the full term of the
manufacturer’s warranty, then it will be provided
under this Plan. If on-site service is not provided
for the full term of the manufacturer’s warranty,
then it will not be provided under this Plan
and
You will be responsible for the costs to transport
Your Product to a repair facility as determined and
authorized by the Plan Administrator.

price list is attached below

Terms and Conditions - Major Appliance Extended Protection Plans (purchased 10/16/2010 and after)
http://www.lowes.com/pdf/Major%20...%20EPP.pdf

http://www.lowes.com/cd_service+a...earch=true
Lowe's Extended Protection or Replacement Plan

The obligor for this program varies by state. For obligor and administrator
details, refer to the terms and conditions. In Florida, this program is
provided by United Service Protection, Inc. In Texas, the
obligor is Federal Warranty Service Corporation.
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Last edited by kmrn123 March 17, 2011 at 06:47 PM
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#7
Quote from smass View Post :
I know your question was "which warranty to buy" but I figured if you are looking for opinions - I would give you my two cents.

I never buy warranties. Ever. Instead I self insure by maintaining an adequate emergency fund. This fund can be tapped to repair or replace things that may have problems. If you add up the amount of money you spend on warranties and, instead of buying the warranty, put that money in an emergency fund, you will always have adequate funds to cover your own repairs. And, since the vast majority of things don't break, you will be much better off in the long run.

Warranties are the highest profit margin thing that stores sell. They make money hand over fist by selling these things. Thats my two cents Smilie
I rarely buy extended warranties. Never bought one on an electronics item. But from what I have read and heard about washer/dryers, repairs can be very expensive. It seems pretty likely that the washer or dryer will need a repair within a 5-year period. If so, the cost of that repair will likely exceed the cost of the extended warranty. In this case, I'm looking at spending $100-180 for a washer/dryer set that cost about $1,100. So the warranty cost is roughly 10-15% of the item cost. To me, this is an acceptable expense and a reasonable decision.
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#8
Quote from kmrn123 View Post :
thanks OP
wanted a washer, so looked into lowe's EPP

Major Appliance Extended Protection Plan (Items $200 and above)
Benefits include:
...
Thanks for posting the summary info; I had not yet bothered to re-read all those details. It answers some of my questions in a positive way.

I thought the detailed terms & conditions were in the 'receipt jacket' they gave me when I purchased the washer/dryer, but there actually weren't any details in there about the warranty.

Although I am leaning toward just keeping the Lowe's warranty, I worry that getting a good deal on the washer means you might be in trouble if a replacement unit is needed...how can they give me an equivalent unit in the future when I paid 40% off regular price and their terms say the replacement unit is not to exceed the cost of the original unit. Seems like you are at their mercy here.
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#9
Here is my experience for what its worth.
I bought a washer dryer from sears in Nov 2008. I then bought a Square Trade Warranty for both W/D. Just this past January (2011) the water pump broke on the washer and I had to call Square Trade. I have to tell you that customer service at ST was great to deal with. I called them late on a Friday, on Monday a local appliance repair company called me to schedule an appt for Thursday and then they had to order the part but came again the following Tuesday. There was no money out of my pocket. My washer works now (knock on wood).
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#10
Quote from bluedevils View Post :
So if I buy a $500 washing machine and a 5 year Squaretrade warranty on it, and 6 months later the washer is repaired and Squaretrade says the repair cost was $200
Wouldn't use you the manufacturer's warranty when the machine is less than 12 months old?

We just bought a slightly dented LG 3875 steam washer/dryer for $1700 (retails for $2200) from a local appliance store. Retail offered a 4-year warranty for $350/pair, I countered with Home Depot's 4-year warranty (which starts after the manufacturer's warranty) for $200/pair, and they countered with $250/pair, which I accepted.

SquareTrade offers a 5-year warranty for $120. That allows for $1700 in repairs on either machine, which I think would be sufficient for over 5 years.

I think I'm going to go with SquareTrade.
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Last edited by pseudoswede April 5, 2011 at 02:16 PM
#11
Quote from bluedevils View Post :
Trying to decide whether to go with the Lowe's extended warranty on a new washer/dryer or Squaretrade instead.

I'm looking at the total 5 years of coverage.

Lowe's 4 year warranty $180 for both starts after manufacturer's 1-year warranty ends. 5 years total coverage. $180 for both washer and dryer (bundle discount in store but don't see it working online; or $110 each) - not bad.

Squaretrade.com 5 year warranty $140 for both with 30% off code MARCH ($100 each minus 30% = $70 each). Coverage starts on date of purchase, i.e. 5 years total coverage.

Washer/dryer were purchased with a Lowe's gift card (to get the 10% Tax GC bonus), so I'm not eligible to get a 2nd year of coverage from my credit card company.

I haven't read the fine print yet on the Lowe's protection plan / warranty; definitely need to do that soon. So far, here are my thoughts:

Lowe's Pluses:
* Feel better about dealing with a local store where the units were purchased. This may be a false assumption of getting better customer service.
* Squaretrade has a max warranty coverage amount and that scares me if the unit requires more than 1 repair and you could end up stuck with a broken machine and no more coverage to fix or replace it.

Squaretrade Pluses:
* Lower price, especially if you can get a 40% or 50% off code.
* Less hassle? Squaretrade seems to replace or refund purchase price in many cases where an item is broken or the repair would be too costly or tricky. But how are they in dealing with washer/dryers? I haven't seen hardly anything on the net discussing this.
* I like the idea of getting a replacement / refund via Squaretrade instead of having Lowe's send out a 3rd party technician several times and not really fix the problem. I've heard horror stories where people have an inoperable washer or dryer for weeks at a time because the store (Sears, Lowe's, Home Depot, Best Buy, etc) doesn't care about actually getting the customer's unit up and running. I would hate to find myself in that situation and have no recourse.


From Squaretrade FAQ
[squaretrade.com]. "If my item breaks, where will I have to send it?"

If our Warranty Service Specialist determines that your item needs to be replaced or that estimated repair costs exceed the value of your coverage with us, you will receive reimbursement of the current item replacement value (less the cost of any previous repairs made under our coverage).

So if I buy a $500 washing machine and a 5 year Squaretrade warranty on it, and 6 months later the washer is repaired and Squaretrade says the repair cost was $200 (but you paid nothing since it was covered under warranty), THEN 3 years later the washer has another problem and the technician says the washer needs to be replaced (not fixable, or repair cost too high etc)...Squaretrade will reimburse me only $300 since 'that is all the coverage left on your warranty' ???

That's how I interpret it and it is a little bit worrisome. I'd expect that if my washer breaks down and is repaired, then breaks down again and needs another repair or needs replacing, that the warranty would cover all of it, NOT reach a maximum value and offer no further coverage.

Also found this on the "How does your coverage work with my manufacturer's warranty" question on the FAQ page:

If you have an issue while the Manufacturer's Warranty is still in effect, we'll help you by providing their contact information (if available) - saving your SquareTrade policy for its entire (and far longer) term... essentially giving you two bites at the cookie.

That seems to mean that there definitely *is* a max payout on a Squaretrade warranty.

Guess I need to read the fine print on the Sears/Lowe's/Best Buy extended warranties. I can't imagine they have the same kind of restriction/limit.




THIS IS STILL TRUE TODAY - was going to call square trade (BTW- if you call them, they will take 30% off the retail price right away) and then i read your old post.
If our Warranty Service Specialist determines that your item needs to be replaced or that estimated repair costs exceed the value of your coverage with us, you will receive reimbursement of the current item replacement value (less the cost of any previous repairs made under our coverage).

So if I buy a $500 washing machine and a 5 year Squaretrade warranty on it, and 6 months later the washer is repaired and Squaretrade says the repair cost was $200 (but you paid nothing since it was covered under warranty), THEN 3 years later the washer has another problem and the technician says the washer needs to be replaced (not fixable, or repair cost too high etc)...Squaretrade will reimburse me only $300 since 'that is all the coverage left on your warranty' ???

THEY WOULD ONLY GIVE YOU $300 IN THIS CASE. and since you will prob have some repairs before they deem it not repairable, you will not get your $ back. even more then this- if they fix a $200 item 1st year. and a $200 item 2nd year, by 3rd year you only have $100 left for repairs on this item... THEY WILL ONLY PAY (total all 5 years) UP TO THE COST OF THE ITEM. i always thought a warranty is like insurance, - and not that they will only pay out UP TO the cost of the insurance.
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#12
Old tread! but i have to ask...

So if you get the extended warranty with Square Trade , will they charge you any deductible ? out
of pocket money?

I reading some stories to stay out of Store Extended Warranty,and get Square Trade for warranty!, as i am planing to get a pair of new washer and dryer , around $600 each ,witch is $139 per 5 year warranty at ST, and wanted to make a decision when i go in store what warranty to buy.

The store "Best buy " say 5 years is $109.

Any advice will nice from others experiences.

Thanks
P.
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#13
Quote from patrocle View Post :
Old tread! but i have to ask...

So if you get the extended warranty with Square Trade , will they charge you any deductible ? out
of pocket money?

I reading some stories to stay out of Store Extended Warranty,and get Square Trade for warranty!, as i am planing to get a pair of new washer and dryer , around $600 each ,witch is $139 per 5 year warranty at ST, and wanted to make a decision when i go in store what warranty to buy.

The store "Best buy " say 5 years is $109.

Any advice will nice from others experiences.

Thanks
P.
Appliances have no deductibles.

http://www.squaretrade.com/appliance-warranty

Also yes, each the washer and dryer would be $139 for 5 year warranty. There are plenty of coupons available to bring it to under $100 each. Please PM if you're interested, and i'll hook you up! For example, with a 40% (no max discount) code, the 5 year warranty would be $84 each Smilie
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Last edited by BDeck January 11, 2015 at 08:20 PM
#14
Thank you! will pm you later! I am looking to buy some Samsung dryer/washer (top loader) from frys , they are in sale,but need approval for my dear boss.
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#15
how come SquareTrade does not have plan options for refrigerator over $3,000?
I see up to $2,999 on their webpage https://www.squaretrade.com/refri...r-warranty
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