April 28, 2026, 12:25 pm | Read time: 2 minutes
Briefly insured–and paying for years: Electronics add-on insurance seems practical but often turns out to be an unnecessary burden. Consumer advocates clearly advise caution.
Enticing Offers with a Catch
When purchasing a smartphone, camera, or washing machine, retailers often offer a matching device insurance. This is supposed to protect against damage from falls, theft, or moisture and seems sensible at first glance. But here’s the problem: Many of these policies are expensive and offer limited benefits in return. According to the Hamburg Consumer Center, customers often pay significantly more than they would ever get back in the event of a claim. The recommendation is clear–consumers should critically examine such add-on offers or reject them outright.
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When Device Insurance Becomes a Long-Term Burden
How unfavorable such device insurance can become is illustrated by a specific case reported by the Hamburg Consumer Center: A customer insured a washing machine worth 199 euros for 8 euros a month. After just two years, the amount paid equaled the device’s original price. Over nine years, the costs totaled more than 800 euros–even though the washing machine was no longer in use. Because the cancellation deadline was missed, the contract continued. Such examples show how quickly supposed protection can become a permanent financial burden.
Legal Protection Is Often Underestimated
Additionally, device insurance often delivers less than expected. Electronic devices quickly lose value and become technically outdated within a few years–but only an equivalent older model is replaced if necessary. At the same time, there is already legal protection when purchasing: For two years, the retailer is liable for defects under warranty and must rectify them. For many buyers, this is sufficient. Instead of signing additional contracts, it may be more sensible to set aside money for potential repairs or new purchases.