Squaretrade vs. Store Extended Warranty for Washer/Dryer
Thread DetailsLast Edited by bluedevils March 15, 2011 at 12:35 PM
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:
* 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.
* 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.