Extended Warranty - RV-Dreams Community Forum

marianne57 · RV-Dreams Family Member

Extended Warranty

NWescapee · RV-Dreams Family Member

We have our RV extended Warranty through one of their companies. We've used our warranty 3 times (2X for different fridge components that had to be replaced and once to replace the ceiling vent fan in the bathroom), no issues with either claim.

The last time we were hoping they would pay for a repair was on our axle repair, but it was considered component parts, so it wasn't covered. The owner of the RV repair place argued with them about it, but no luck. If we had to have the axles replaced it was covered, but not repaired.

We found Wholesale Warranties pretty easy to work with and they were great about answering questions as we were selecting which quote / company to choose, the guy we talked to even gave us some insight into what he thought were the strengths and weaknesses of the companies he quoted based on his experience.

Barbaraok · RV-Dreams Family Member

Or - you could put the money the policy would cost (or 10% of the purchase price of your rig) into a saving account and add to it each month. Then when a repair/replacement is needed there is no hoops to jump through, no one to argue with you and you can replace things that are deteriorating BEFORE they break with no one saying only if broken is it covered.

It is essential to remember that this is an insurance and insurance companies only stay in business if they pay out less than they take in.

Barb

marianne57 · RV-Dreams Family Member

Barbaraok wrote:
Or - you could put the money the policy would cost (or 10% of the purchase price of your rig) into a saving account and add to it each month. Then when a repair/replacement is needed there is no hoops to jump through, no one to argue with you and you can replace things that are deteriorating BEFORE they break with no one saying only if broken is it covered.

It is essential to remember that this is an insurance and insurance companies only stay in business if they pay out less than they take in.

Barb

That's a good idea too! :)

Bill and Linda · RV-Dreams Family Member

We had a Wholesale Warranties policy on our previous rig as Howard and Linda represent. We had one claim for a refrigerator door replacement which was handled without delay. There is also a provision to cancel the policy which includes a rebate for the cost of the unused term prorated naturally. When we cancelled the policy we received the rebate for the unused term without undue delay. You can transfer the policy to a new owner but for us, as we were doing a trade-in that was of no advantage.

We found them extremely professional and easy to work with. They do require an inspection of the RV which they will pay for before the policy goes inforce. This is simply a baseline inspection and ours was done at a local RV repair shop in less than a day without hassle. They did not require us to travel any distance or inconvenience ourselves to meet some arbitrary vendor’s need.

Insurance is what it is – insurance. We found for the price of this policy it was a good value for our rig as it had a few years on it.

Read over the exclusions carefully so you have no surprises. IMO they are not unreasonable; mostly items that wear out, not the ones that break and can be expensive to repair / replace. Also, as with all insurance, sometimes you must wait on an “adjuster” to review the claim on site. This is not always true, but can be. But all repairs must be approved in advance and that takes at least one piece of paper submitted for review normally by the RV repair facility who will be doing the work.

A personal choice, but if you wish to purchase insurance I would recommend this company and I know H & L would be happy to set the paper work in motion for a quote. I would do business with them again and may in the future.

I strongly suggest not purchasing a policy via an RV Dealership unless you want to seriously overpay in most cases.

cherylbrv · RV-Dreams Family Member

I second what Ruth and Bill & Linda said. I also work with them and have put in 3 claims. I have been extremely happy with their service, feel it's a great value and have more than made up the cost.

marianne57 · RV-Dreams Family Member

Thanks all! I'm thinking we're going to go with them. I think we'd have much better peace of mind when something happens. I compared to where we bought the RV, and it's a world of difference! 3 more years and 200.00 less for same coverage and same deductible.

BiggarView · RV-Dreams Family Member

I strongly favor Barb's self-insure suggestion. Either upfront or working toward it will ultimately be less expensive. If you are short of funds in the beginning then buying an extended warranty policy may be an option, but remember most people will not recover the money paid out in premiums but they gain some measure of peace of mind in the event of a major repair. On the other hand, if you place the money paid for an extended warranty insurance policy into a non-volatile fund (read as low yielding and safe) and add to the "fund", monthly, the cost of of the renewal divided by the number of months the plan is in effect, you will build up a sizable wad. If you never use it, and even if you do, the funds will be there for the repair if needed. If you never use some or all of it, it's still your money, if you buy the insurance, it's gone forever. You may get some value from it from "paid for" claims. Again, most people will not get the full value in claims vs the premiums paid.

Many people will opt for such insurance and then fail to put funds aside in their budget for the eventual renewal and are then "surprised" by it when it comes due. Getting extended warranty insurance is worth considering if your budget is tight and the insurer will offer you payment options rather than "in full" upfront. Just like businesses, however, the goal should be moving toward self-insuring and cutting out the middleman. With the self insure option, you are in control if a situation arises, with an extended warranty claim you'll have to go through them to recover a claim and you may or may not have issues with the insurer. Anecdotal evidence suggests some are good, some aren't. Even the good ones will challenge you from time to time or disallow what you thought was covered. Do you really what that hassle, if it comes up?

Either way, self-insure (separately or as part of an emergency fund) or extended warranty one should not forget to include this important budget item when planning.

Remember, the purpose of optional insurance (as extended warranty coverage is) is to protect those that cannot afford to deal with a significant loss or hit to their finances. This same "peace of mind" comes from self-insuring. Proper planning will go a long way to mitigate that vulnerability and even eliminate it when adequately funded.

FWIW, Brian

-- Edited by biggaRView on Wednesday 20th of May 2015 09:15:44 AM

Curtis and Rhandi · RV-Dreams Family Member

We opted out of the extended warranty when we bought our Fiver a couple weeks ago. It just didn't make financial sense to pay for it for the use of it for 5 years, but to pay interest on it for 12! That is if we don't pay it off ahead of time. We went the same rout as Barb, and put our own fund aside for extra warranty issues.
We also did not buy gap insurance on our rig. We got our rig for less than NADA pricing, and even AFTER 12 years and interest, it will STILL be less than NADA value price. Also- been with my insurance company for over 36 years....my father also worked for this insurance company for 30 years. So if something horrible happened, I know them well, and know they would cover the gap if there was one. Gap insurance can be a great thing - but if you have a good working relationship with your insurance people, it isn't necessary - at least to me :) Again, I don't want to pay interest on something like that. I would be better off keeping the $$ in savings and paying the gap myself should my insurance company not come through.
But hey - different strokes for different folks! :) It's all good!

HighwayRanger · RV-Dreams Family Member

Our quandary is the massive cost of a replacement Cummins diesel engine, which can be in excess of 25K if it is completely ruined somehow. If we are able to have at least that much sitting in savings, it makes complete sense to not spend the money on a warranty. I guess we'll see how we are sitting once the manufacturer warranty runs out, as that is the time in which we'll be on the hook if the thing dies on us. It is also a concern that our nest egg (saving for a future stix/brix when we're done fulltiming) could take a huge hit in the above scenario. Guess we'll evaluate and make a best guess when the time comes.

Roy

Barbaraok · RV-Dreams Family Member

Roy,

One of the things to consider is how likely are you to have a complete engine go? Not saying it doesn't happen, but it is extremely rare for a Cummins (or Cat). It is a risk and only you can decide what your risk level is at.

Barb