Did you buy a new TV to watch March Madness? Purchase the latest mobile phone or tablet? Have you bought a new home? If you have, you were probably offered an extended warranty on your purchases.

Today’s market size shows the total amount of premiums consumers paid for extended warranties in 2017. These premiums fall into 8 categories: vehicle service contracts, mobile phone insurance, consumer electronics service contracts, computer OEM service contracts, jewelry protection plans, home warranties, appliance protection plans, and furniture protection plans. How purchases are categorized depends on who sold the extended warranty and not on the item itself. For example, if an iPhone protection plan was sold by Apple, the plan will be considered a computer OEM service contract. If the plan was sold by a retailer, it falls into the consumer electronics protection plan category. If the plan was sold by a wireless phone carrier, then it’s considered mobile phone insurance.

Overall, the amount of premiums paid from 2016 to 2017 declined by $250 million. Vehicle service contract premiums, which brought in $16.7 billion in 2017, declined the most during this time period, down $300 million, followed by plans covering brown and white goods and mobile phone insurance plans. Home warranty premiums grew by $340 million from 2016 to 2017, a 16% increase. Total jewelry service plan premiums and furniture protection plan premiums also grew during this time period, by 2% and 3% respectively.

Geographic reference: United States
Year: 2017
Market size: $44.7 billion
Source: “Service Contract Market Size,” Warranty Week, February 1, 2018 available online here.
Image source: Glavo, “smartphone-mobile-phone-phone-2971080,” Pixabay, November 7, 2017 available online here.