Appliance Replacement Plans

[Trevor Ewen]

We're buying a whole lot of appliances from Lowe's this weekend. For the set of appliances we've chosen for the units, Lowe's has 5 year replacement plans available. According to our numbers, these are running at about 25% the cost of the appliance itself.

i.e. Dishwasher: $1000, 5 Year Plan: $250

Psychologically, my problem is if it goes down in year 6, we're still in trouble. What have you typically found with these things? Is it better to roll the dice and assume that the first 5 years will be the good ones?