Extended Warranty - RV-Dreams Community Forum

Melstar · RV-Dreams Family Member

Extended Warranty

Racerguy · RV-Dreams Family Member

No. In my opinion.

Terry and Jo · RV-Dreams Family Member

Melanie,

Yep. You'll get both sides, but mostly the answers will be "don't do it."

However, let me suggest that you look at what systems are in the camper and determine whether you would have the ability to fix-it-yourself on most of the systems. If so, then I'd say don't do it.

On the other hand, we had a policy on our 26 foot fifth wheel and had the TV go out. Getting the thing replaced through the dealership, the replacement TV was $700. So, in our case, we probably either came out slightly ahead or about even. Could we have replaced the TV ourselves? Probably, but a lot of time I don't want Jo having to mess with some things that could be covered by a policy, should something happen to me.

For many years of our marriage, I insisted that we trade vehicles every few years so that Jo always had a fairly new vehicle. I didn't want her in an undependable car or truck. In my case, my vehicles have usually been kept longer.

Like the credit life policy on your other thread, you may want to calculate the cost for the life of the policy to see if it would be worth it. On the Mobile Suites, there are a number of EXPENSIVE things that might justify the warranty. On a camper with fewer "systems", it might not pay in the long run.

Good luck with the decision.

Terry

Howard · Host

Once again, I'm not quite willing to say unequivocally that extended warranties aren't worth it. It's that former lawyer thing again - it depends. smile

Many are rip-offs. No question about it. But some are worth the money.

Now, if you get one from a dealer, you are probably paying a high price because the dealer is getting a commission and there is a high profit margin built into the sale of the warranty. However, getting one off the internet or other places can be very risky unless you do a lot of homework. So, a warranty through a dealer may be worth the extra expense because the dealer's reputation is partially based on the strength and service of the warranty company.

An extended warranty is not insurance, but it is similar. It should be evaluated the same way. Most of us have insurance because we can afford a premium but can't assume the risk of a major outlay of cash. For those that can afford to assume the risk of high dollar repairs on an RV, I would certainly recommend skipping a warranty. But, for those that would be wiped out by a major problem, a warranty might be the way to go.

Of course, if nothing goes wrong with the rig, then the warranty was a waste of money. But if you have a major system failure that is covered, suddenly that cost of the warranty doesn't seem so bad.

Okay, the basics.

What is the cost and coverage?

It is imperative to evaluate the coverage. Most people (but certainly not all) that have had problems with extended warranty coverages were burned by the various exclusions in the warranty.

Cost as it relates to the level of coverage is an important consideration. Even high priced warranties may have too many exclusions.

We have an extended warranty that is pretty comprehensive and has more than paid for itself (i.e. investing the price would not have earned nearly enough income to cover the costs we would have had to shell out). Many others have been burned by them. There are lots of opinions.

Should you decide to go with a warranty, I would recommend the following:

1. Research the financial stability of the company.
2. Insist on reading the coverages and exclusions (lots of legalese) and make sure you understand it.
3. Make a few phone calls to service departments at RV dealerships across the country and inquire about the warranty company reputation. There are some warranty companies that some dealers won't work with at all. There are some warranty companies that dealers will work with, but they require you pay the bill and then get reimbursed by your warranty company (I prefer a warranty company that a dealer trusts to pay them directly).
4. As Terry said, consider the cost as it relates to your rig, the systems in your rig, and the possibilities of something expensive going wrong.

There are lots of pros and cons regarding extended warranties. I'm not advising whether or not to get one. If you don't, make sure you can cover the potential costs of repairs. If you do, make sure it will cover what you think it will cover. The worst case scenario is buying a warranty that doesn't pay and you still have to pay out of pocket. smile

Melstar · RV-Dreams Family Member

Thanks guys.....you are the best!! I am picking up a copy of the Service Agreement at the RV place tomorrow. I want to go over completely.....I was told to watch out for the reputation of the warranty company.

Great idea Howard about calling other RV service departments.

This one has road side service and campground service....I think. I will check all of it.

Labor is over $100 a hour...and parts....

I guess it's just a gamble....but we have some time to check it out. We do have money to pay for repairs (within reason) but it would be nice to not have to worry about it...... I know all repairs have to be approved by the warranty company before the service dept. fixes......so checking out the company is going to be my #1 thing tomorrow.

Paul and Jo · RV-Dreams Family Member

Howard wrote:
We have an extended warranty that is pretty comprehensive and has more than paid for itself (i.e. investing the price would not have earned nearly enough income to cover the costs we would have had to shell out). Many others have been burned by them. There are lots of opinions.

Should you decide to go with a warranty, I would recommend the following:

1. Research the financial stability of the company.
2. Insist on reading the coverages and exclusions (lots of legalese) and make sure you understand it.
3. Make a few phone calls to service departments at RV dealerships across the country and inquire about the warranty company reputation. There are some warranty companies that some dealers won't work with at all. There are some warranty companies that dealers will work with, but they require you pay the bill and then get reimbursed by your warranty company (I prefer a warranty company that a dealer trusts to pay them directly).
4. As Terry said, consider the cost as it relates to your rig, the systems in your rig, and the possibilities of something expensive going wrong.

There are lots of pros and cons regarding extended warranties. I'm not advising whether or not to get one. If you don't, make sure you can cover the potential costs of repairs. If you do, make sure it will cover what you think it will cover. The worst case scenario is buying a warranty that doesn't pay and you still have to pay out of pocket.

Who'd ya go with Howard?

Paul