Consumer Reports puts the average large-appliance extended warranty at $126, against just $26 more to repair without one. Here's when the math flips.
Key takeaways
- Consumer Reports says decline extended warranties in nearly every case: the average large-appliance plan costs $126, but going without one costs only about $26 more in repairs on average.
- The exception is appliances with genuinely high failure rates—Consumer Reports found 34% of refrigerators need a repair within 5 years, and washers and dryers aren't far behind.
- An extended warranty is a single-appliance retail add-on, not the same product as a home warranty, which covers multiple whole-home systems for an annual fee—don't confuse the two when comparing prices.
- Self-insuring (putting the $100-$200 premium into a repair fund instead) usually beats buying, because you keep the money if nothing breaks.
- The FTC says to compare the extended warranty against the coverage you already have from the manufacturer before paying anything extra—many failures happen inside the free warranty window anyway.
- Buying makes more sense only for one specific case: an expensive single appliance (a $2,500+ refrigerator, a built-in range) that you could not comfortably replace out of pocket if it failed early.
An extended warranty on a major appliance is usually not worth it. Consumer Reports found the average extended warranty on a large appliance costs $126, while skipping one and paying for a repair yourself costs only about $26 more on average. Their guidance: “In nearly every case, it’s best to decline the offer.” The exception is a short list of appliances with genuinely higher-than-average failure rates—refrigerators chief among them—where the math is closer and worth running for your specific purchase. This page covers that math and the decision framework, not whole-home warranties—a separate, multi-system product covered elsewhere in the warranties, costs, and records hub.
The math, in one place
| Number | Figure | Source |
|---|---|---|
| Average extended warranty cost, large appliance | $126 | Consumer Reports |
| Average extended warranty cost, small appliance | $21 | Consumer Reports |
| Extra cost of repairing without a plan, vs. the plan’s price | About $26 more, on average | Consumer Reports |
| Refrigerators needing a repair within 5 years | 34% | Consumer Reports |
| Washing machines that broke or stopped working over 10 years | 20% | Consumer Reports |
| Dryers that broke or stopped working over 10 years | 16% | Consumer Reports |
Read the top row carefully: on average, buying the plan and never using it costs you $126. Not buying it and needing a repair costs you only about $26 more than the plan itself would have. That’s the whole case against extended warranties on a typical appliance—the insurance costs roughly what the risk costs, which is the opposite of a good insurance deal. As Consumer Reports puts it: “Today’s appliances are fairly reliable. The chance that your refrigerator or dishwasher actually needs a repair during the extended warranty period is pretty low.”
When the math flips
| Situation | Why it changes the decision | What to do |
|---|---|---|
| Refrigerator with a 34% five-year repair rate | Highest failure rate Consumer Reports tracks among major appliances—closer to a coin flip than most | Worth pricing an extended warranty against the actual repair cost for your model before declining automatically |
| Washer or dryer purchase | 20% and 16% ten-year failure rates are elevated but lower-stakes than a fridge | Price it, but lean toward self-insuring unless the plan is unusually cheap |
| A single expensive appliance you couldn’t replace out of pocket | The real risk isn’t the average repair—it’s a full early replacement you can’t cash-flow | A warranty functions as budget protection, not just repair insurance, in this case |
| A reliable brand/model with strong owner-reported reliability data | Lower baseline failure risk pushes the math further against buying | Research the specific model (not just the brand) before deciding |
| Store or card already includes purchase protection | Some credit cards extend the manufacturer’s warranty automatically at no extra cost | Check your card’s benefits guide before paying for a duplicate |
Decision framework: buy, or self-insure
| Decision | Buy the extended warranty | Self-insure instead |
|---|---|---|
| What you do | Pay $100-$200+ upfront for extended coverage | Set the same amount aside in a repair fund |
| If the appliance never breaks | Money spent, no return | You keep the money |
| If it breaks after the manufacturer warranty ends | Claim covers the repair (minus any exclusions or service fee) | You pay the repair from the fund, which is often close to what the warranty would have cost anyway |
| Best fit | One expensive, hard-to-replace appliance; a model/type with above-average failure data (see fridges above) | Most appliances, most of the time—per Consumer Reports’ overall guidance |
| Ongoing value | None after the plan expires or the appliance is replaced | The fund keeps growing and covers the next appliance too |
Self-insuring simply means treating the premium as your own repair fund instead of handing it to a warranty company. Because Consumer Reports’ numbers show the “insurance” (the warranty) costs almost exactly what the risk (the average repair) costs, keeping that money yourself and only spending it if something actually breaks comes out ahead over multiple appliances and multiple years—money not spent on a fridge that never breaks is still there for the dryer that does.
What to check before you say yes
| Question | Why it matters |
|---|---|
| What does the manufacturer’s included warranty already cover, and for how long? | The FTC’s core recommendation—many extended warranties overlap coverage you already have for free |
| What’s specifically excluded? | Cosmetic damage, accidental damage, and “pre-existing” issues are common carve-outs |
| Does routine maintenance affect the claim? | Some contracts can deny a claim if required upkeep (filter changes, cleaning) wasn’t documented |
| Who repairs it, and where? | In-home service vs. mail-in vs. a specific authorized shop changes the real hassle cost |
| What’s the claims process and typical wait? | A hard-to-use plan is worth less than its sticker coverage suggests |
| Is it sold by the retailer, the manufacturer, or a third-party administrator? | Third-party administrators can go out of business; check who’s actually on the hook |
When to call a professional
| Situation | Why it is not a DIY decision |
|---|---|
| You’re comparing a home warranty quote against an appliance’s extended warranty | These are different products with different math—a licensed insurance agent or a careful read of both contracts, not a guess, should settle it |
| The extended warranty is bundled into financing or a service contract you don’t fully understand | A contract you signed under time pressure at checkout deserves a second read before the return window closes |
| A claim was denied and the contract language is ambiguous | Your state consumer protection office or attorney general’s office handles unresolved service-contract disputes |
Records worth keeping either way
| Keep this | Why |
|---|---|
| Original receipt and manufacturer warranty terms | Needed for any claim, warranty or self-insured repair |
| Extended warranty contract, if purchased | Claims require the written terms, not what a salesperson said |
| Model and serial number | Repair techs and claims lines ask for this first |
| Repair fund balance, if self-insuring | Lets you actually compare what you spent against what a warranty would have cost |
Related guides
Frequently asked questions
Are extended warranties on appliances usually worth it?
No, not on average. Consumer Reports found that the typical large-appliance extended warranty costs $126, while skipping one and paying for a repair out of pocket costs only about $26 more on average. For most appliances, the numbers favor declining the offer and self-insuring instead.
Which appliances are the exception where an extended warranty might make sense?
Appliances with above-average failure rates and high replacement costs, such as refrigerators. Consumer Reports found 34% of refrigerators needed a repair within 5 years of ownership, and 20% of washing machines and 16% of dryers broke over a 10-year span—numbers high enough that a warranty is at least worth pricing out.
What’s the difference between an extended warranty and a home warranty?
An extended warranty is a single-appliance add-on sold at checkout, typically covering one product for 1-5 extra years past the manufacturer’s coverage. A home warranty is a separate annual service contract covering many appliances and home systems at once, usually with a per-claim service fee. They are different products with different math—don’t compare their prices directly.
What should I check before buying an extended warranty?
The FTC recommends comparing the extended warranty to the coverage you already have from the manufacturer first, since many failures happen inside that free window. Also check what’s excluded, whether routine maintenance is required to keep coverage valid, how claims are filed, and who performs the repair.
Is self-insuring instead of buying an extended warranty a real strategy?
Yes—it means setting aside the amount you would have spent on the warranty (commonly $100-$200 per major appliance) into a repair fund instead. If the appliance never breaks, you keep the money. If it does break, you’re often close to the actual repair cost anyway, since Consumer Reports found extended warranties cost only about $26 more than paying for the average repair out of pocket.