Hotpoint new for old protection plan

kateo

Hi there.
I'm not sure if I am posting in the right forum, but here goes ( & apologies if in wrong place!:o )

My Hotpoint fridge freezer is almost 3 yrs old. I have just received an offer for a "new for old protection plan". It works out to £51 a yr. & guarantees that if the engineer can't fix the appliance I will be given a brand new replacement.

The f.f cost around £300 new. After 6 yrs, at £50 a yr, I would have spent £300 on the plan, & the f.f would be 9 yrs old by then.

My question is - how long does a f.f last ( we are a family of 7, so it is used), & does this seem like a good way to save for my next f.f?

Thanks for reading this far - & any advice would be much appreicated.

Thank s

Kate

kwatt

All I'd say Kareo is that insurance companies aren't in business to lose money.

Breakdown cover can be a good thing don't get me wrong, but read the terms very carefully. With most you'll find that after five years old then "market value" is offered if the machine is BER (Beyond Economical Repair) whereas under five years old a new one will be supplied. Market value on a fridge, or any appliance, over five years old is roughly 20-30% off the purchase price per annum compounded, so you'd be lucky to get £100 back if it was BER after the five year point.

Depending one where the cover comes from, in this case I'd expect it's Domestic & General, then you will have little choice in where to buy a replacement, it's Comet or nowhere as that's part of the terms as well.

Hope that helps.

K.

kateo

Thanks for the reply - I shall definitely take a look at the T &C's before I make any decision.

Kate

swagman

Every survey I have ever come across says that such plans are not worth it, especially for f.f. which are amongst the most reliable.
Yes, you can be unlucky, but the odds are that you will spend more in the long run by having the plan.

In any case, you will probably want to replace the appliance for cosmetic or other reasons before you reach the point where you actually 'win' on the insurance company. And of course cosmetic deterioration would not be covered by the plan.