As 2018 comes to a close, many people are eagerly anticipating the change that comes with a new year. For Safeware, a leading provider of product protection and extended warranty solutions, the end of the year is an opportunity to make note of any new trends and patterns, particularly in the electronics’ realm.
In 2018, Safeware saw extended warranties for electronics make up almost 50% of total contract sales. The majority of electronics for which protection plans were purchased were consumer electronics, which include devices that are bought for personal use rather than commercial use.
Within the electronics space, just over 40% of claims filed were a result of mechanical breakdown. This includes events that result from failure of a covered part of the device, such as the audio jack malfunctioning or the camera functionality breaking. Many of these incidents can severely hinder the usability of the device.
As always, accidental damage from handling was a close second in terms of top threats facing electronics in 2018. This includes incidents that occur during normal use, such as dropping the device. This is the most common cause of claims for Chromebooks, which are a popular choice in K-12 classrooms where the risk for devices to be damaged is increased due to the age of the users.
“The end of the year affords us the ability to reflect and take note of any trends we saw occur in terms of warranty sales and claims patterns over the past year,” says Safeware’s Chief Executive Officer, Bryan Schutjer. “In 2018, we saw mechanical breakdown remain the most prevalent type of claim for electronics, followed by accidental damage from handling, strengthening our resolve to continue to provide the most comprehensive product protection for these types of devices.”
Safeware’s historic data for 2018 greatly aids in preparing for 2019 and predicting what is to come in the extended warranty and product protection space. Fortunately, Safeware’s commitment to providing innovative and best-in-class protection plans for electronics, appliances, furniture, and fitness equipment enables customers to own their products with confidence.
Having pioneered the technology insurance industry in 1982, Safeware is now one of the most recognized names in product protection. Safeware’s innovative approach to insurance and extended warranty solutions has propelled the company into multiple industries including education, corporate technology, fitness, furniture and appliances. By allowing partners to customize coverage based on their unique needs, Safeware provides best-in-class programs allowing customers to own their products with confidence.
Learn more about Safeware online at www.safeware.com