What is a warranty and should I buy one?
A warranty is a contract that can be provided by the retailer, manufacturer or – most often – a third party company. The warranty will usually state that the provider will repair or replace a product if a fault develops. Terms and conditions vary between policies depending on what is and is not covered.
It may be included for free with your purchase or you may pay for an extended warranty.
A warranty is additional to your consumer rights and does not replace or remove them in any way. Some people may find it easier to claim a repair from the manufacturer using a warranty but there isn’t a need, as your contract is with the retailer and it may complicate matters if you want to make a claim.
An extended warranty does provide more protection. It may include servicing or accidental damage insurance cover but you should carefully check it for exclusions.
If you have any kind of warranty and wish to claim on it, make sure you keep all the evidence of the problem and proposed/actual solution.
Do you need a warranty to get a refund or repair?
I regularly talk about not needing a warranty because your consumer rights are enough. Whenever I do this it always draws in people telling me that warranties are better, usually from people who sell them!
In fact, it isn’t quite as clear cut as “Don’t buy a warranty”. Whilst in most cases, your free consumer rights are worth more, there are some things to consider.
Consumers regularly ask questions across my social media platforms, Instagram, Facebook, TikTok, Threads and on my blog. In my The Complaining Cow Consumer Column, I share queries that come up most often. So today I am going to answer several questions about warranties.
Do I need a warranty?
When you purchase an item the retailer may try to sell you a warranty. This is rarely worth more than your consumer rights.
They may be worth a look at if they include insurance that is right for you.
Compare the warranty with your existing consumer rights:
Under the Consumer Rights Act 2015 (CRA) items must:
- be fit for a specific purpose
- be of satisfactory quality
- match the description
- be free from defects
- last a reasonable length of time
Let’s look at some of the statements sometimes made about warranties…
“The person trying to sell you the warranty is often on minimum wage and/or has commission targets set by management.”
This may be the case. However, it is not a reason that you should buy an unnecessary warranty. Misleading or pressurising someone into buying a warranty may breach consumer protection law, depending on what was said and how it was sold. If you believe that a company is trying to mis-sell you a warranty then report them to the CMA. It could be a breach of the Digital Markets, Competition and Consumers Act.
It is worth noting that the Competition and Markets Authority took action against Currys for mis-selling warranties. So if enough people complain about a company doing this then the CMA may take action again.
Note that the CMA will not help you with your individual issue but if it receives enough complaints it might open an investigation.
“The warranty includes free labour”
Under the CRA you are entitled to repairs without significant inconvenience to you and free of charge and that includes labour. So do not buy a warranty just because the salesperson says labour is included.
“We will respond within 48 hours”
Under the CRA you are entitled to a repair with a reasonable length of time. A “reasonable length of time” which depends on the product, the fault and the circumstances and usually falls to what the average person would deem as reasonable. See What is a reasonable length of time in the Consumer Rights Act? for more detail.
If you would like the security of knowing you won’t be without your item for a long time, check whether the warranty promises only an initial response, an engineer’s visit or a completed repair within those 48 hours because they are not the same thing!
Parts shortages may affect repairs whether using a warranty or your consumer rights, so check exactly what the warranty promises if repairs are delayed or parts are unavailable.
“The warranty covers accidental damage”
This is where you may want to consider the “Insurance” addition to the warranty. However, you should look at your own home contents insurance and what is covered. Assess the risk of accidentally damaging only that item and any excess you may have to pay or possible effect of making a claim on the following year’s premium.
However, it is worth noting that when we claimed for accidental damage after a water leak and for damage to a phone and compared Insurance prices for the following year, the renewal was actually cheaper. It is rare for a renewal of any insurance to be cheaper.
Read the policy to check for exclusions. You may believe that the policy will give you good cover. However, one of my followers told me that the warranty didn’t cover her when a wire from a bra damaged the drum which is one of the most common accidental damages that happen to washing machines! So, check that small print before you buy!
“The warranty includes a yearly service”
This MAY be part of the warranty package. You would need to research whether the product you are buying actually needs to be serviced every year and how much it would cost to take out a different plan, by comparing prices.
“We will come out an unlimited amount of times to repair”
This is not even the equivalent to your consumer rights. It’s actually worse! Under the CRA you are entitled to a replacement or full refund.
Also, check the warranty terms to see if there are any limitations on repairs.
“It covers you when you have used it a lot”
Your legal consumer rights do not cover wear and tear. For example, if an independent report shows that a washing machine has become faulty after heavy use you would not get the repair you might be entitled to had you used it an average amount. A warranty may cover more than your consumer rights, such as heavy use or wear and tear, but check exactly what the policy covers and excludes.
Extended warranty insurance is a financial product
If you do buy an extended insurance warranty and have difficulty claiming, be sure to assert your statutory consumer rights! If you are struggling with the additional warranty element of insurance, follow the Top 20 tips for complaining effectively and threaten to use the Financial Ombudsman and take the matter there for free, if necessary.
More on warranties
Search warranty guarantee Warranty vs guarantee: your consumer rights explained
Further help with complaining effectively
For more general advice on resolving complaints see Top 20 Tips on how to complain effectively
For more advice, tips, information and template letters covering holidays and more: GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!
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