Extended Warranty - RV-Dreams Community Forum

foxriverguy · RV-Dreams Family Member

Extended Warranty

Darrell and Judy · RV-Dreams Family Member

I purchased a seven year warranty on our 2004 Cedar Creek. Never had a use for it, but when I traded for the 2006 the insurance company rebated the unused portion. I, also, purchased a seven year policy on the 2006 as well. It covers both equipment failures and owner's stupid mistakes. One time with a refridgator will more than cover the expense of the policy. RVs are complex - converters, convection/microwave ovens, AC units, generators, appliances, etc. The replacement and labor on a major item will more than pay for the insurance. When you are living fulltime in your RV these things are all getting daily use, so I think it is a good investment at less than $200 per year.

I have no experience with policies offered on older units, so I do not know what the cost or coverage is.

Darrell

Howard · Host

This is such a hard question to answer. We bought a plan from our dealer and we are glad we have it. In addition to the extended warranty, we also have a separate tire plan (also through our dealer).

Here is a link to one of the best articles I have found on the web on Extended Warranties. As you read through there is also a link to a page of questions you should ask the warranty company. It's from 2002, but it is still a good overview.

Though not technically insurance, the thought process is the same. Is going without worth the risk that nothing will happen? We all have various insurance policies that we rarely or never use. Only the individual can determine if they can "self-insure" and come up with the money to fix any potential problem.

I used to be in the camp of never buying extended warranties on anything. They are money makers for dealers and salespeople, and my rationale was always "If you are selling me a quality product, why would I need a warranty?" But now I'm much more selective before I categorically say "No!"

I have read many posts on other forums that say extended warranties are pure rip-offs, and to set the amount you would pay in fees aside and use it later to make repairs. I have seen the posts that say you are betting on having to have repairs on your RV if you buy an extended warranty; therefore, you shouldn't buy that RV.

Well, I haven't talked to a full-timer yet that hasn't had to have repairs. And the Life On Wheels instructors point out that the RV industry is basically self-policing with no governmental standards. So, if you use your RV a lot, expect to have to make repairs and, unless you can fix everything yourself or you can handle just about any repair out of your pocket, I don't think extended warranties are a bad idea. If the RV is gonna be parked 48 weeks a year, it might be tougher to justify a warranty.

The warranties themselves can be a gamble. Just like any other contract you have to read the fine print. There are lots of stories out there from those complaining that they were denied coverage. But for every person that says they were denied coverage, there are lots of quiet folks that are perfectly happy with their warranty experience.

The warranties are so varied in their prices and coverages, it's just not an easy thing to shop. You likely will pay more, and maybe a LOT more, through a dealer. BUT, the dealer is sort of going out on a limb recommending a warranty plan, so they will probably be more likely to back it up if they are a good dealer.

And just like everything else, cheapest is often not the best. Some dealers will not do repairs if the warranty company is not familiar to them or they have had poor experiences getting paid. So if you go with a warranty, be sure to get the AM Best rating (just like on insurance companies) on the warranty company that stands behind the warranty - don't rely soley on the reputation of the dealer or club that sells it.

So there you have another detailed attorney non-answer answer.