Many consumers buy extended warranties with items such as electrical goods to protect themselves from the cost of repair. (Note: all electrical goods come with a minimum 1-year manufacturer’s guarantee as it is.)

Many people argue that it is much cheaper to pay for repairs as you go, rather than buy a warranty. There are many reasons for this:

1. Consumer goods are now more reliable and less likely to go wrong.
2. The cost of a warranty is sometimes more than half the cost of the actual item – not making them a cheap option.
3. There is very little price competition, so stores can charge pretty much what they want.

If you are still worried about breakdown costs, then before you go for an expensive extended warranty, check your household insurance policy, which should cover it. If not, it may be possible to increase your contents cover at little extra cost.