CASAS Practice Test 9

Is That Protection Plan Worth It?

You have just picked out a new washing machine. At the register, the clerk asks if you want to add a three-year protection plan for $129. Should you say yes?

In most cases, the answer is no. Most new appliances already come with a one-year warranty from the company that made them, so the first year of the plan repeats coverage you already have. Also, most appliances that break do so in the first year or after many years of use. That means a plan that covers the second and third years often pays for little.

Repair costs matter too. In a survey by the Fairway Consumer Council, shoppers who had an appliance repaired paid less, on average, than shoppers paid for a plan. Before you buy, read what the plan covers and compare its price with the cost of a repair. You may do better by putting that money into savings for repairs.