That’s the view from independent after-sales insurer, Warranty Direct, ahead of new legislation governing the sale of extended warranties on domestic electrical goods. The Supply of Extended Warranties on Domestic Electrical Goods Order 2005 comes into force on 6th April.
“Despite the Government’s efforts, the best thing to come out of the last three years is the publicity not the legislation,” adds Duncan McClure Fisher, managing director of Warranty Direct.
“Retailers may have to follow stricter guidelines, but our advice remains the same – don’t buy at point of sale, don’t buy within the first twelve months and don’t bother buying for cheaper, disposable brown and white goods like DVDs and microwaves,” he adds.
Warranty Direct have always strongly advised consumer caution when it comes to buying an extended warranty ever since the Competitions Commission began its original investigation in late 2002.
McClure Fisher advises: “The consumer must remember that this is not a panic purchase. An extended warranty should be about ‘peace of mind’, and by default you should take time to weigh up the options and worthiness of the policy. For example, do you really need to pay for accidental damage when home contents will provide more than adequate cover?”
Warranty Direct offers two policies for domestic electrical goods either Single Appliance (for up to four years after manufacturers warranty) from £10.70 a year or Multiple Appliance at £9.75 per month for three named items up to 8 years old. Payment is monthly, with the ability to cancel or alter an item included at any point without penalty.
For further information please visit www.warrantydirect.co.uk or call 0800 731 7001