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Safeware Makes The Case For Extended Warranties

Says manufacturer defects account for 40 percent of claims 4/20/2017 10:30:00 AM Eastern
Take Away

Forty percent of claims stem from mechanical or electrical issues, which makes for a powerful argument when pitching a service plan attachment.

Purchasing an extended warranty for pricey, handheld devices is a no-brainer for the fumble-fingered among us.

Indeed, in a recent survey by LG Electronics, one-third of respondents admitted to cracking their screens in a phone fall.

But according to Safeware, a Dublin, Ohio-based insurance agency and third-party administrator (TPA) for extended warranties and service plans, consumers should also be concerned by manufacturing defects. The company’s own statistics show that 40 percent of all extended-warranty claims stem from mechanical or electrical issues, and, of those, 86 percent do not present themselves until after the standard one-year manufacturer’s warranty period has ended.

Common device flaws include defective batteries, touchscreen failure, charging or power adapter malfunctions, and display issues like dead pixels or lines through the screen, Safeware said.

Of those, battery and adapter failures account for fully 15 percent of defect claims, while another 10 percent are related to screen failures — all of which can make for a powerful argument when looking to attach a service plan to a hardware sale.

“Extended warranties provide added value to customers by supporting the high cost of maintaining today’s increasingly complex devices,” noted Safeware CEO Bryan Schutjer. “We understand that technology is an investment, and our extended warranties are designed to ensure that consumers are protected against unexpected failures and damage.”

The company also offers programs for the appliance, furniture and fitness categories, and the educational and corporate tech channels.
Take Away

Forty percent of claims stem from mechanical or electrical issues, which makes for a powerful argument when pitching a service plan attachment.

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