Making your money go further is important, so if you are thinking about buying an electrical item, make sure you know the true cost of extended warranties.
From ipads to games consoles, TV's, cameras, laptops and kitchen ‘white goods’, extended warranties are often offered to give you 'peace of mind'.
The OFT is advising consumers to think carefully about the value for money offered by an extended warranty, as it is likely to be expensive compared with the amount you would normally pay out in repair costs.
Some people forget that the goods they buy new often have a manufacturer’s guarantee that usually lasts for one year, so there may well be no need to buy an extended warranty when you buy the goods.
The OFT suggests that before they buy a warranty, shoppers should think carefully about the following:
- If you do decide to buy a warranty, remember you don't have to buy one in store. Take time and shop around for the best deal using www.compareextendedwarranties.co.uk
- Some providers offer warranties where the price of the warranty is included in the price of the electrical goods.
- Although warranties generally do offer additional rights, you may also be covered by your household insurance.
- You have statutory rights if something goes wrong: consumers are protected by the Supply of Goods and Services Act 1996 which states that goods must be as described, of satisfactory quality and fit for the purpose.
It is certainly a good idea to shop around for some quotations before signing up to a warranty. You should also check that the warranty company has an agent here to carry out any repairs otherwise you might have to send the purchase away and pay the postage.