Archived Copies of Warranty Week

December 2002 to Today

Apple's Warranties & Service Contracts: Not only has the company grown into one of the world's largest product warranty providers, but it's also running one of the world's largest extended warranty programs. However, while iPhone sales were down by 12% in 2016, iPhone protection plan sales were down by even more. Is it the competition? Or are consumers buying fewer iPhone extended warranties from Apple?
December 15, 2016
Service Contract Pricing: SquareTrade: Next year, once Allstate completes its SquareTrade acquisition, we'll find out whether there's more value in its direct-to-consumers sales model or in its traditional retail relationships. But this year, though the company has a reputation for selling inexpensive product protection plans, we're finding that some of its retail partners are marking up prices significantly.
December 1, 2016
Retail Product Warranties: Though it's not common, there are some retailers, primarily in the auto parts business, that provide their own product warranties above and beyond what the manufacturers offer, and report those expenses in their financial statements. But it's likely to become more common in other lines of business, as more manufacturers open their own retail outlets or sell directly to consumers online, and more retailers begin to sell their own brands.
August 18, 2016
Appliance Protection Plans: When it's all counted together, a huge amount of money is being set aside to pay for product repairs. Manufacturers finance their warranties and consumers can purchase additional protection through either service contracts or home warranties. It all adds up to about $6.77 billion spent last year on protection plans.
January 28, 2016
Home Warranty vs. Homebuilders' Warranties: When it comes to protection plans, consumers spent over $2 billion on home warranties last year while builders spent roughly $1.5 billion on warranty claims. Home warranties are an essential part of a sales transaction in some states, and homebuilder warranties are a major attraction for new home buyers. But most existing homes aren't covered by a protection plan, and the warranty costs for most new homes aren't reported publicly.
January 21, 2016
Service Contract Underwriters: Well over half the service contracts sold each year to consumers are backed by publicly-traded insurance companies based in the U.S. What follows is a list of their financial strength ratings and a look at their stock market track record since 2008.
February 5, 2015
The Post-Purchase Experience: More than just a buzzword, it's becoming an important part of customer loyalty. Consumers who feel their service contracts can provide a better level of customer service will buy them again, just for the convenience of knowing who to call when they need a repair.
October 23, 2014
Mid-Year Service Contract Report: Consumers will pay nearly $40 billion this year for product protection plans, despite the best efforts of the watchdogs who tell them not to. It's mostly for smartphones and passenger cars, though, because everything else is perceived to be disposable and not worth fixing.
October 9, 2014
Extended Warranty Image Problems, Part 3: Does the industry need a spokesman to educate consumers about the value and convenience of service contracts? Or does it already have a spokesman that also acts as the industry's attorney? And if a new spokesman is needed, who will pay for what will be a costly and time-consuming ongoing expense?
October 3, 2013
Vehicle Service Contract Underwriters, Part 1: If you know how many vehicles were sold and how much insurance was purchased, you can make a pretty good guess of how much consumers have spent on vehicle service contracts. But who sold them? How much were they? Some answers follow.
August 26, 2010
Top Auto Insurance Companies: One would expect a high correlation between those offering auto insurance policies and those offering vehicle service contracts or mechanical breakdown insurance to consumers. But Zurich is the only one with a major presence in both.
June 25, 2010
Vehicle Service Contract Industry: Consumers seem to prefer the term extended warranty. But industry professionals prefer the term service contract, even when they work for companies with the word warranty in their name. The problem is, there are at least three dozen other terms used to describe the product. Or is it a service? A service product?
January 21, 2010
Home Warranty Market Share: While American Home Shield continues to dominate, electrical and water utilities are shaking things up with the growth of their wire and pipe protection services. And despite a continuing multi-year dip in home sales, the home warranty industry set a record this year with $1.5 billion in premiums paid by consumers.
December 22, 2009
Selling Peace of Mind: With all the negative publicity generated by the "expiring warranty" telemarketing scam, these days it's the auto dealers that need some reassurance about the value of selling vehicle service contracts to consumers. Below is a list of some of the benefits of the different types of VSCs, followed by two different lists compiled by industry associations that can help consumers spot a scam before they buy into it.
July 16, 2009
Flat Rate Extended Warranties: For shoppers, the choice at the cash register is to say yes or no. The competition is between administrators vying for exclusive contracts with the retailers. But now there's a new choice, for consumers to go home and buy their extended warranties over the Internet.
August 7, 2008
Warranty Claims by Industry: Over the past ten quarters, warranty claims patterns have remained remarkably consistent in numerous industries. Those closest to consumers in the supply chain seem to experience the highest claims rates.
September 7, 2005
Warranty Complaints: Consumers with gripes about denied warranty claims are best advised to file a complaint with their local Attorney General, and not to bother with the federal watchdogs.
July 26, 2005
Warranty Conference,
Part Six: Warranty fraud is a big problem for vehicle service contract administrators. But surprisingly, the biggest culprits are usually the mechanics and repair shops, not the consumers.
April 12, 2005
Selling Customer Care: While an extended warranty is a type of insurance contract, NEW sells it as an enhanced customer assistance program, promising consumers 24x7 access to advice and boosting customer loyalty for retailers.
October 19, 2004
Warranty in Europe: As a major part of consumer protection, warranty has a high priority in the policy of the European Commission. Consumers are protected by mandatory warranty periods of two years, by legal instruments to guarantee access to the aftermarket for automotive spare parts and by stringent rules for product safety. However, increasing warranty costs in the automotive industry may indicate that the reality of product quality has not yet met the requirements of those legal rules. A warranty industry association is needed to satisfy consumers and to reduce these tremendous costs.
June 29, 2004
Warranty Registrations: Given that nine out of ten consumers don't bother filling out the postcards, what can be done to boost response rates? Two new warranty registration systems from veterans of the messaging industry are spotlighted.
July 14, 2003