Guidance

What you need to know before you buy an extended warranty

Updated 26 March 2021

Extended warranties are a way of getting extra protection for a new product in addition to the standard warranty (also known as a manufacturer’s warranty) that comes with it. They can cover the cost of repair or replacement after the standard warranty has expired.

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Extended warranties are available to buy on a variety of products including fridges, laptops and TVs.

However,

• you don’t have to buy one
• you have time to shop around for a better deal - if you want the peace of mind that extra cover brings, you don’t have to buy one at the same time as you purchase the product.
• you might be covered anyway through you contents insurance or your bank account.

Deciding whether to take out an extended warranty

You don’t have to buy one

This is an optional product; no-one has to buy an extended warranty. Products typically come with a standard manufacturer’s warranty which might be enough for your needs.

Whether or not you buy an extended warranty, you are still entitled to your statutory rights, which may include a refund, repair or replacement if something is faulty.

You can shop around around for a better deal

You do not need to make a decision at the time you purchase a new product. You can shop around, so do not feel pressured into making a decision on the spot. Instead, you can check comparison sites such as the Compare Extended Warranties website to explore pricing and features that would better suit you.

Once you’ve found a better value extended warranty, check its total cost against the cost of buying a replacement product. Is it worth it?

There might be better options than an extended warranty

There are other products which might be more suitable for you if you have lots of gadgets, it might be better for you to buy multiple item insurance, which could cover a range of your items.

You might be covered anyway

Contact your home contents insurance provider and ask them what you are covered for. Some bank accounts also cover gadgets, so check with them too.

If you’re not covered already, think about whether you need protection. How long is the standard manufacturer’s warranty? If the product breaks after the standard warranty runs out, would it be more cost effective for you to buy a replacement than pay for additional protection?

What to look out for

A business selling an extended warranty must make sure it does not give you false information, or present information in a misleading way. It can’t omit or hide important information; and information must be clearly and prominently provided so that you have everything you need to make an informed decision. For example you should be told about any important things that you would not be covered for, such as cosmetic damage.

Buying extended warranties for Domestic Electrical Goods

You have extra rights if you purchase a domestic electrical product and an extended warranty for it from the same retailer. The CMA requires those retailers to:

• display the price and duration of an example extended warranty alongside the price of products
• make clear that the purchase of an extended warranty is optional
• provide information on your rights to cancel the extended warranty

What to do if you think you’ve been mis-sold an extended warranty

If you have concerns, firstly ask the business to look into your complaint. If they don’t address it to your satisfaction there are a number of organisations who might be able to help.

If you think you’ve been mis-sold an extended warranty, you can contact Citizens Advice on 03454 040506 or 03454 040505 for Welsh language speakers.

Consumers in Scotland can call Consumer Advice Scot on 0808 164 6000.

In Northern Ireland, contact Consumerline on 0300 123 6262.

These materials are not a substitute for legal advice, and should not be relied on as such.

More information on unfair terms.