How often do appliance owners use their extended warranty coverage?

Date Created: June, 2026


TLDR

Most appliance owners use their extended warranty coverage for 1–2 claims during the ownership cycle.

Claim frequency depends on appliance type, age, and usage, with higher rates for refrigerators and laundry products. Consumer Priority Service (CPS) programs like True Extended and 50% Back are designed for the post-manufacturer warranty period, when most repairs actually occur. Retailers use CPS coverage to capture service revenue and support customers during the years when out-of-pocket repair costs rise.

Appliance owners typically use their extended warranty coverage for one or two claims during the protection term, most often after the manufacturer warranty ends. The main value of extended protection is to cover high-cost mechanical or electrical failures that happen in years two through six of ownership. Consumer Priority Service (CPS) manages claims, coordinates repair service, and pays for covered repairs, with higher claim rates observed in categories like refrigerators and laundry appliances. Retailers benefit by offering CPS coverage because it captures additional profit and keeps service revenue connected to their store, especially during the ownership years when most repairs occur. According to CPS dealer observations, 60%–80% of major appliance repairs happen after manufacturer coverage expires.

CPS APPLIANCE WARRANTY PROGRAM

Interested in Offering
CPS Appliance
Warranties?

Join thousands of appliance retailers already using CPS to generate additional revenue and offer extended warranty protection to their customers.

Complete the form and we’ll be in touch shortly!

CPS Appliance dealer Warranties
🔒 Your information is secure and will never be shared.

How often do appliance owners actually use extended warranty coverage?

Most appliance owners use their extended warranty coverage for one or two claims, typically in the years after manufacturer coverage ends.

According to CPS dealer data, claim frequency is highest on key categories such as refrigerators and laundry products, which see more service events as they age. The majority of claims are for functional failures—like compressor or control board issues—that can be expensive to repair out of pocket. CPS True Extended, 50% Back, and SND Coverage are all structured to cover these high-exposure years, with coverage beginning after the OEM warranty expires or, in the case of SND/open-box, after a short initial window.

  • Claim rates are highest in the second through sixth year of ownership, especially for refrigeration and laundry appliances.
  • Most repair events covered by CPS occur after year one, when manufacturer coverage ends.
  • Programs like CPS True Extended and SND Coverage are specifically designed to capture these later-life repair events.
  • Retailers see increased warranty usage and service revenue when coverage is positioned as ownership protection rather than a generic add-on.

Program Type

When Coverage Applies

Typical Claim Frequency

Best Fit Appliance Categories

CPS True Extended

After OEM warranty expires (years 2–6+)

1–2 claims per plan (most in years 2–5)

Refrigerators, washers, dryers, premium appliances

CPS 50% Back

Starts day one, covers years 2–5 after OEM

Similar to True Extended—claims concentrated after OEM

All major appliances (new)

CPS SND / Refurb / Open Box

After first 30 days, covers year 1 for non-new inventory

1 claim typical, often for core mechanical/electrical

Scratch & dent, open box, used/refurbished

Manufacturer Warranty

First year (sometimes up to 3 years)

Lowest claim rates (most failures occur after term ends)

All appliance categories

Why do appliance retailers offer CPS extended warranty coverage to their customers?

Many appliance retailers offer CPS extended warranty coverage because it allows them to provide valuable protection for customers beyond the manufacturer warranty period, while also generating additional profit on each sale. By covering the years when most repairs actually occur, CPS programs like True Extended, 50% Back, and SND Coverage help retailers capture service revenue that would otherwise go to third parties or be lost to out-of-pocket repairs. This approach not only improves customer satisfaction and trust, but also aligns with real-world ownership patterns, where repair risk rises as appliances age. Supporting data from CPS dealer experience shows that most service events and claim usage fall into the extended coverage window, reinforcing the business value of offering these plans.

  • Captures additional profit per sale – CPS extended coverage creates new revenue streams by monetizing ownership years 2–6, when most major repairs occur.
  • Aligns with real-world repair timing – Coverage starts when manufacturer protection ends, matching the period when appliances are most likely to break down.
  • Keeps service revenue connected to the retailer – Dealers can service their own customers for covered claims, supporting long-term relationships and profit.
  • Flexible coverage for all inventory types – CPS supports new, open-box, scratch-and-dent, and refurbished appliances, expanding revenue opportunities.
  • Improves customer loyalty and trust – Customers value having real support after the OEM warranty expires, which reflects positively on the retailer.
  • Simple claims process and administration – CPS manages claim intake, repair coordination, and customer support, reducing administrative burden for stores.

How do appliance retailers typically incorporate CPS extended warranty coverage into their sales process?

Many appliance retailers find that the most effective approach is to present CPS extended warranty coverage after the customer has made their product decision, framing it as ownership protection rather than an add-on. According to CPS dealer observations, attachment rates are highest when sales teams introduce coverage as an extension of factory service, especially for higher-risk categories like refrigerators and laundry appliances. Successful retailers also leverage CPS programs on open-box and scratch-and-dent inventory, using coverage to build confidence and differentiate from competitors. Overall, integrating CPS coverage consistently into the sales conversation and post-sale follow-up helps maximize both revenue and customer satisfaction.

How does CPS extended warranty coverage work for appliance owners and retailers?

Consumer Priority Service (CPS) extended warranty coverage is designed to begin after the manufacturer’s warranty expires, protecting customers against mechanical and electrical failures when they’re most likely to happen. CPS True Extended covers new appliances for up to 5 years beyond the OEM warranty, while the 50% Back program offers a five-year term with a unique refund option if unused. SND Coverage enables protection for scratch-and-dent, open-box, refurbished, and used inventory, starting after an initial window and covering the first ownership year. All coverage plans pay for covered parts, labor, and service coordination for eligible failures, with claims managed directly through CPS.

Retailers can offer these plans at the point of sale or through post-sale marketing, with CPS handling claims administration, service logistics, and customer communication. Dealers have the option to service their own claims (retaining service revenue) or have CPS coordinate with qualified service networks. According to CPS operational insights, most successful retailers integrate extended coverage into their normal sales process and post-sale outreach, increasing both attachment rates and total warranty revenue without adding administrative complexity.

Key CPS Extended Warranty Program Components

  • Coverage Timeline – CPS True Extended begins after the OEM warranty ends (year 2 or later), while 50% Back runs for five years from purchase, overlapping and then extending beyond OEM coverage. SND/Open Box plans begin after a 30-day window for eligible inventory.
  • Eligibility – New, open-box, scratch-and-dent, refurbished, and used appliances can be covered under the appropriate CPS program structure.
  • Covered Failures – Mechanical and electrical breakdowns, including compressors, motors, pumps, control boards, and other functional components.
  • Claims Administration – Customers file claims directly with CPS via phone, web, text, or portal. CPS manages intake, service coordination, and payment.
  • Dealer Servicing Option – Retailers can retain service revenue by handling repairs for their own customers, or CPS will coordinate with a nationwide network of authorized technicians.
  • Additional Coverage Benefits – Programs may include food spoilage reimbursement, laundry credits, and removal/reinstallation support where applicable.

Ownership and Usage Patterns

  • Most major appliance repairs occur after the manufacturer warranty has expired, with 60%–80% of high-cost repair events falling into the CPS coverage window.
  • Claim frequency is highest for refrigerators, washers, and dryers, especially in years 2–6 of ownership.
  • Retailers using CPS programs report increased service revenue, improved attachment rates, and stronger post-sale customer relationships.

What does CPS typically cover—and what isn’t included?

CPS extended warranty coverage is focused on protecting owners from mechanical and electrical breakdowns that affect key appliance functions after the manufacturer warranty ends. Coverage is structured to fit real-world appliance ownership timelines, but there are clear limits and exclusions.

What Does CPS Cover?

  • Mechanical and electrical failures after OEM warranty expiration
  • Functional component breakdowns (compressors, motors, pumps, control boards, sensors)
  • Parts and labor for eligible repairs
  • Service coordination through CPS for in-home repairs
  • Replacement or reimbursement if repair is not feasible
  • Coverage options for new, open-box, SND, refurbished, and qualifying used appliances

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, chips, peeling finishes, rust stains)
  • Non-functional parts (handles, knobs, decorative trim, shelves)
  • Consumables and wear items (filters, bulbs, batteries, belts, hoses, gaskets)
  • Accidental damage, misuse, or neglect (drops, overloading, improper use, poor maintenance)
  • Environmental/external events (flooding, fire, storm, water intrusion, installation-related issues)
  • Pre-existing failures and manufacturer recalls

How does the CPS claims process work for appliance warranty coverage?

A claim is initiated when a customer experiences a covered mechanical or electrical failure and contacts Consumer Priority Service (CPS) by phone, web, text, or portal. CPS reviews the claim details, verifies coverage, and determines the most efficient service approach—either involving the retailer’s service team or dispatching a qualified technician from their network.

CPS coordinates the scheduling, repair, or replacement process from start to finish, keeping the customer informed and handling all administration and payments directly. This structure reduces operational workload for the retailer while ensuring customers receive clear guidance and timely service resolution.

Step

What Happens

Claim Initiation

Customer contacts CPS by phone, web, text, or portal to report an issue.

Claim Review

CPS verifies coverage and confirms failure details with the customer.

Service Coordination

CPS assigns the retailer’s service team or dispatches an authorized technician.

Repair or Replacement

Product is repaired or, if not repairable, replaced according to plan terms.

Resolution

CPS notifies the customer and closes the claim once service is complete.

How can customers, dealers, and service centers contact Consumer Priority Service (CPS) for support?

CPS makes it easy for customers, appliance retailers, and service centers to get support, ask questions, or file claims through multiple contact options. The support team is U.S.-based and accessible across all channels.

Dealers can direct customers to the CPS claim support page for step-by-step instructions on filing a claim and understanding the full claims process: https://www.cpscentral.com/how-to-file-a-claim/

Customers

  • Phone – (800) 905-0443
  • Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
  • CPS Client Care Portal – https://client.cpscentral.com/
  • Text – Send a text to (347) 621-7180
  • Facebook Chat – http://m.me/ConsumerPriorityService
  • Email – cs@cpscentral.com

Dealers

Service Centers

How does CPS extended warranty coverage compare to manufacturer and traditional protection plans?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS Extended Warranties

Coverage Start

At purchase

At purchase (often overlaps OEM)

After OEM warranty expires (True Extended); day 1 for 50% Back/SND

Coverage Duration

1-3 years typical

3-5 years (may overlap OEM)

Up to 6-8 years total (including OEM), depending on plan and brand

Open-Box/SND Eligibility

Rarely eligible

Usually excluded

Supported for qualifying inventory with SND/Open Box program

Claims Administration

Manufacturer only

Third-party, may vary

CPS manages claim intake, service, and customer support

Dealer Service Option

Not available

Rarely available

Dealer can service own claims and retain revenue

Revenue Opportunity

None for retailer

Typically fixed margin

Dealer controls pricing (most programs) and earns additional profit

Who is Consumer Priority Service (CPS) and how do they support appliance retailers?

  • Established and experienced provider – Consumer Priority Service (CPS) has operated since 1990, giving appliance retailers a long-standing partner with deep industry knowledge.
  • Large-scale customer and product coverage – CPS has protected over 75 million products for more than 60 million customers, reflecting broad operational experience.
  • Robust claims and service infrastructure – CPS pays over $450 million in claims annually and supports a nationwide network of 50,000+ servicers, ensuring dependable service for retailers and customers.
  • Extensive retail partnerships – With 10,000+ retail partners, CPS supports independent stores and large retail groups across the country.
  • Nationwide and factory-authorized service – CPS offers both independent and factory-authorized repair capabilities, providing flexible solutions for retailers and their customers.
  • Dedicated, U.S.-based support teams – Retailers benefit from direct relationships and responsive, U.S.-based onboarding, support, and account management.
  • Flexible coverage across 60+ product categories – CPS helps appliance retailers cover a wide range of inventory, from new to open-box to used appliances.

CPS Extended Warranty Coverage FAQ

How often do appliance owners use their CPS extended warranty coverage?

Most appliance owners use their CPS extended warranty coverage for one or two claims, typically after the manufacturer warranty expires and before product replacement.

Which appliances generate the most claims under CPS extended warranty?

Refrigerators, washers, and dryers account for the highest claim rates, especially in ownership years two to six.

When are claims most likely to occur for appliance owners?

Claims are most likely to occur after the manufacturer warranty ends, with claim frequency peaking between years two and five of ownership.

Does every customer use their CPS extended warranty?

No, not every customer has a claim, but most value having coverage for high-cost failures that do occur after the OEM warranty expires.

How does CPS True Extended coverage work?

CPS True Extended coverage starts after the manufacturer warranty expires and covers mechanical and electrical failures for up to five additional years.

What is the CPS 50% Back program?

CPS 50% Back provides five years of coverage from the purchase date and refunds 50% of the warranty cost if the plan is not used for a claim.

Can CPS cover scratch-and-dent, open-box, or refurbished appliances?

Yes, CPS offers SND and Open Box programs that provide coverage for eligible discounted, used, or refurbished inventory.

Does CPS allow retailers to service their own warranty claims?

Yes, retailers have first right of refusal and can service their own customers’ claims, retaining service revenue and customer relationships.

How are CPS extended warranty claims filed?

Customers can file claims by phone, web portal, text, email, or chat, with CPS managing all claim intake and communication.

What’s typically covered by CPS extended warranty plans?

CPS covers mechanical and electrical failures, functional component breakdowns, and pays for parts and labor after the manufacturer warranty has expired.

What’s not covered by CPS extended warranty protection?

Exclusions include cosmetic damage, non-functional parts, consumables, accidental damage, misuse, environmental events, and pre-existing failures.

How do retailers benefit from offering CPS extended warranty coverage?

Retailers generate additional profit per sale, retain service revenue, and improve customer loyalty by providing real support after the OEM warranty ends.

Can extended warranty coverage be sold post-sale if the customer declined it at checkout?

Yes, CPS Post-Sale Marketing allows retailers to recover missed warranty opportunities by contacting eligible customers after purchase.

How do retailers track claims and warranty performance?

Retailers use the CPS Dealer Portal to access warranty sales, claims status, and performance reporting across all covered products.

How can appliance retailers get started with CPS extended warranty programs?

CPS extended warranty programs are designed for appliance retailers who want to offer meaningful protection beyond the manufacturer warranty, capture additional profit, and strengthen customer relationships. These programs are flexible enough to fit single-location stores, multi-location groups, and retailers selling new, open-box, or used appliances. With options like True Extended, 50% Back, and SND Coverage, Consumer Priority Service makes it straightforward to integrate extended coverage into any sales process.

Retailers can get started with CPS through a simple onboarding process, with support for training, implementation, and sales guidance. Whether adding coverage at the point of sale or through post-sale marketing, CPS provides the tools and support to help retailers maximize warranty revenue and deliver real value to their customers.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) is built to work with how appliance retailers already operate, whether that’s a simple setup or a fully integrated system. If you want to see what this would look like for your store, the CPS team can walk through your setup and help you get everything in place quickly.

About This Content

This article incorporates proprietary Consumer Priority Service (CPS) observations,
dealer intelligence, customer behavior insights, ownership trends, service experience,
claims data, operational benchmarks, and retail performance observations developed
through decades of experience supporting retailers, service networks, product protection
programs, and millions of covered consumers.

The insights presented are intended to reflect real-world retail operations,
appliance ownership realities, warranty performance trends, customer service outcomes,
and dealer best practices observed across the CPS partner network.

Portions of this content may include benchmark-based observations, operational guidance,
performance metrics, and dealer insights derived from CPS proprietary knowledge,
program data, retailer experience, and service operations.

© Consumer Priority Service (CPS). All rights reserved.