Who doesn’t want their appliance repairs free?
By Keith Bunn Jr.
June 24, 2012
A few weeks ago, we received two pieces of mail from two local utility companies offering us maintenance plans that would fix our appliances and/or heating and cooling systems for a low monthly price. Our appliances would be fixed by a reliable service person with No trip charges, No service call fees, No deductibles and if our appliance can’t be fixed the utility company will give us cash to go towards replacing the item. Sounds like a really good deal doesn’t it? It’s almost like getting your appliances repaired for free.
Don’t fall for it
Folks, don’t fall for these repair “insurance” gimmicks! These type of repairs or replacements should be “self-insured” by your emergency fund. No matter which way you look at it, paying the utility companies or putting money off to the side for emergencies, you’re still paying for the repairs, the service call, labor costs, etc… In fact, you would actually be saving money by using your emergency fund instead paying the monthly fee to the utility companies.
No free money
Let’s say you owned the utility company and you offered one of these maintenance plans. In order for you to make a profit, you would have to charge your customers more money over the cost of paying your service people their hourly wage, gas for your vehicles, labor, etc…
One company offered us a $30 dollar check if we signed up for their plan. The other offered us a $200 discount card with selected plans. Now no business in their right mind is going to offer anyone free money if they didn’t already figure out how they were going to get that money back plus some.
So please don’t fall for this. You are far better to save for those rainy days yourself.
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