Think carefully before buying extended warranties

With many people buying new electrical items in time for Christmas, Consumer Direct is advising people to think carefully before deciding to buy an extended warranty.

Many of us are familiar with the sales pitch when buying electrical goods, but Consumer Direct is encouraging people to consider their options and assess the value and cost of extended warranty offers.

Also known as service agreements, extended warranties are offered for all kinds of household goods from TVs and DVD players to vacuum cleaners and washing machines. They generally begin after the manufacturer's guarantee finishes and they usually pay for any repairs to your appliance if anything goes wrong in a specified period.

Michele Shambrook, Operations Manager for Consumer Direct said: 'When you buy domestic electrical goods you already have certain legal rights. If the appliance breaks down within a reasonable period of time, the retailer is obliged to put the problem right by repairing or replacing the product. It may be worth buying an extended warranty if it gives you something over and above these rights, such as accidental damage cover - but you often you get this under your home contents insurance anyway.' For those people who decide that they want the protection and peace of mind which an extended warranty offers, Consumer Direct has this advice:

you do not have to buy a warranty at the shop where you bought the goods.

make sure you understand the terms of the agreement and what extra protection the warranty has to offer before deciding to buy.

don't be rushed into making a decision - retailers must offer extended warranties on domestic electrical goods on the same terms for 30 days if you choose not to buy it there and then. This includes any discount that was offered.

retailers also have to give you 45 days to cancel the extended warranty, and provide you with a written reminder of this right and the right to cancel at any time and receive a pro-rata refund.

you can buy warranties that cover a number of appliances, such as all the electrical equipment in your kitchen, so it is a good idea to shop around for quotes before signing up to a warranty.

For clear, practical advice on buying a warranty or if you are having problems with faulty goods, visit consumerdirect.gov.uk.