Insurance's do we need so many

computerwoman

Hi
I have home ins
so do I need to ins my other items as well,
I got a washer/dryer and have it insured,
for 4 more year's, this will cover any repair's,
and if not new for old,
but do I need to insure my cooker and fridge/freezer as well.
the company I am with said yes I do for peace of mind,
so have taken out further cover for my cooker an extra 4 year's on top of my 1st year, this is costing me £74 paid monthly at £7.40 for 10 month's, but now they are bugging me to insure the fridge/freezer as well, £96 at £9.60 monthly for 10 months, do I need it, or are they just stringing me a line to get more money out of me, my home insurrance is £13 a month,
any help would be thankful
cw

lisyloo

Home insurance will not cover your for breakdown of electrical items.

Ideally it's better not to insure these items but this depends on whether you can afford to repair them.
Insurance companie need to make a profit because they are a business so on average you are going to pay more for insurance than if you paid for repairs, however that depends on "average luck". You could be unlucky in which case you would be better off having insurance.
Unfortunately none of us have a crystal ball and know whether we are going to claim or not so it's a gamble.

If you can afford repairs then I would say don't get insurance for these things and put the premiums in a savings account to save for repairs.
However if you can't afford repairs or replacements then you may feel you need peace of mind.
This is one of the ways rich people get richer and poor people get poorer.

Ideally the strategy should be - don't insure anything you can afford to repair/replace youself (becuse ultimately you'll end up paying more as you have to pay for insurance company admin and profit).

courtjester

You are not talking about insurance (fire, flood, theft etc covered on your normal home contents insurance), you are talking about 'extended warranties'.

Universally, these are regarded as extremely profitable money-spinners for the retailers (which is why they push them so hard, particularly the curry /comet brigade) and in most cases, a complete waste of money.

It always amuses me that they sell you the goods on reliability and brand issues and then warn you that they are going to break down straight after the 12 month guarantee runs out...

Don't be taken in, save the money and pay for any repairs required as you go.

Just say no.

computerwoman

thanks for your reply's
I don't have much money,
what I do have I use very carefully,
and when it come's down to repair's I'd rather not have the expense of getting someone in,
so the £5.25 a month for the washer/dryer is just pease of mind for me,
and the £7.40 for the cooker is too.
I'd rather pay this for 10 months, then I dont have to worry for 5 years,

if in 5 years time I need new ones
then I may be in a position to buy new ones.
cw

lisyloo

and in most cases, a complete waste of money

I don't necessarily agree with this.
I would assume that the poster who wrote this could easily go out and buy a new freezer/washing machine etc. or have the available credit to put it on a credit card or a loan.

Not everyone is in a posistion to do this so although these are a complete "rip off" to some people, for others they provide an important function.

Be aware however that your statutory rights cover you for up to 6 years (depending on the item) and that the cost of a lot of consumable electronics has come down quite considerably, so important to re-assess.