Five reasons not to buy an extended warranty this Black Friday

Shopping for tech or appliances this Black Friday? You might be tempted to add a retailer's extended warranty to cover you if your product develops a fault.

But these extended warranty plans - often offered by retailers such as Amazon, AO, Appliance City, Argos, Currys, John Lewis and Very - don't always give good value or include the cover you'd expect if things go wrong.

In fact, you could end up paying extra for faulty goods cover you're already entitled to for free under consumer law or in the manufacturer's guarantee.

Here, we look at five reasons why extended warranties aren’t worth adding on, and your faulty goods rights under the Consumer Rights Act 2015 (CRA).

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1.  One-off repair costs can be cheaper

Paying upfront for a warranty, or in monthly instalments, might seem like a good way to avoid hefty repair costs later.

But paying for repairs if and when they're needed could cost less in the long run.

Which? research previously found the average cost of repairs for some tech products is less than the average amount spent on warranties.

The average cost of getting your laptop fixed, for example, was between £68 and £78 in our research in 2021. Extended warranties are, on average, taken out across two years at a cost of £84.80 a year.

Instead of buying an extended warranty for a fault that might not happen, it's worth looking into whether one-off repairs will be cheaper.

• Read more: best Black Friday deals 2023

2. Cover can fall short of statutory rights

Retailers' extended warranties often lack comprehensive cover.

Some policies offer you less than your statutory rights, only allowing you to make a certain number of claims within a specific time, or not guaranteeing you a like-for-like product in the event of a replacement.

Currys customer, Jon, paid £80 for an additional care plan when buying a soundbar. His product became faulty within four months and Currys was unable to repair it.

Although Jon was entitled to a full refund under the Consumer Rights Act at this point, Currys offered him a credit voucher for around £200 less than what he initially paid.

Currys explained this was in line with his care plan T&Cs which state that you'll receive a voucher worth the value of your faulty product if it can't be repaired. As the soundbar was now in the sale, his credit voucher was reflective of the reduced price.

When Which? contacted Currys, it told us that if a customer has an issue with a product they bought with a care plan, it’ll assume the customer is invoking their rights under their care plan. If the customer specifies they wish to exercise their rights under the CRA, they’ll be presented with options in line with this legislation.

This means, as Jon experienced, you could end up paying more for fewer rights with certain retailers' warranty plans.

Currys told us it’s fully aware of its statutory obligations. It noted there was confusion on their systems during the refund process. It also apologised to Jon for the lack of clarity and says it will feed back that training around this is needed.

• Read more: my warranty provider won't honour my policy, what can I do?

3. You're covered by a manufacturer guarantee

Most tech products and appliances already come with a manufacturer warranty that lasts for at least a year and often longer.

These manufacturer guarantees will typically include breakdown cover if your new tech fails.

Retailers also often offer breakdown cover as part of their extended warranties.

But Which? research found that many big tech retailers often don't allow you to claim for breakdown problems if they're already covered by the manufacturer warranty.

This means you could be paying extra for breakdown cover you can't make use of while your manufacturer breakdown cover still applies.

• Find out more:when can I use a manufacturer's warranty or guarantee?

4. Home and contents insurance

If you do want extra protection for your new product, or don't think you could afford the upfront cost of a repair, it's worth looking at home insurance that covers all your tech and appliances for accidental damage.

Contents cover doesn't usually pay out for mechanical breakdowns, faulty workmanship, or wear and tear. But home insurance can be useful for any clumsy accidents.

Most providers offer accidental damage cover for your appliances, gadgets, furnishings and other possessions.

This cover usually doesn't come as standard, but getting protection for all your contents is reasonably straightforward and inexpensive to add in when getting a quote.

As with all insurance, the cover is subject to exclusions. Some policies won't cover damage caused by pets, cleaning or tenants. It's worth checking the wording carefully if you are looking for extra cover.

• Read more: how to find cheap home insurance

5. You're already protected under consumer law

If your product does develop a fault, you already have rights to a refund, repair or replacement (depending on when you notice the fault) under the CRA:

• If you notice a fault within 30 days, you're entitled to a full refund, repair or replacement. After 30 days you can ask for a repair or replacement. If the retailer fails to repair or replace it, you can then ask for a full refund.
• If you discover a fault within the first six months after buying a product it is presumed to have been there since the time of purchase unless the retailer can prove otherwise. During this time, it's up to the retailer to prove the fault wasn't there when you bought it.
• Your statutory rights for faulty goods last for up to six years in England, Wales and Northern Ireland, taking into account how long you could reasonably expect the product to last. Your rights are covered for five years in Scotland.

If you have a product that has arrived faulty or has developed a fault, you can use our tool to complain about a faulty product.

And you also have rights to cancel your extended warranty policy if you no longer think it's worth paying for.

The Supply of Extended Warranties on Domestic Electrical Goods Order 2005 gives you the right to cancel a warranty if it lasts more than a year. If you cancel within 45 days of taking out the warranty, and you haven't made a claim, you must be given a full refund. If 45 days have passed, you're still entitled to ask for a pro-rata refund.

• Find out more: how to cancel your extended warranty