Seeking Warranty Recommendation

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asim

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Joined
Apr 24, 2017
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Hello Everyone.

Before I begin, I want to thank all of you for answering our previous queries/concerns. Your input has been extremely helpful in our research.

This is our very first RV and we are getting a new Class C motorhome. During the pre-paperwork, we were given a choice to add 1). warranty for the coach. 2). Tire replacement (accidental/ emergency etc). 3). Gap insurance.

These items would be covered for 7 years, and the cost would be broken down and added to to our 20 year loan. When we add this for the 20 year loan, it comes up to $18,000. This seems a rather excessive for a $60,000 brand new coach for only 7 year protection. We still have our options open. I need advise on the following:

a). Is the cost fair?
b). The protection is thru AGWS (American Guardian Warranty Service). Does anyone have a good/bad experience with them?
c). If we purchase warranty independently, which company would you guys suggest.

Thanks in advance.
 
Total waste of money in my mind put the money in savings ad use when needed.
 
Financing a 7 year warranty for 20 years is a terrible idea.  Of course, I think financing any RV for 20 years is a bad idea anyway.  A new RV should come with a one year warranty and the drive train will have  5 year\50,000 mile warranty from whoever makes the truck.  Tires are not that expensive on a Class C so you can self insure on that one.  The Gap insurance may be available much cheaper thru your car insurance company.
 
RV extended warranties are fairly expensive insurance to begin with.  Financing insurance as part of the vehicle loan is just plain poor money management, even though it seems cheap in terms of additional monthly cost.

That "7 year" warranty is probably only 6 years, since you get a free one year true warranty from the manufacturer. And it doesn't cover anywhere near what the mfgr warranty covers, so you pay a lot to get a little, during a time period when few things are likley to fail anyway. Sure, some people come out ahead on any insurance, but the whole concept behind insurance is that many pay to cover the few who have unusual problems.

If you decide you want an extended warranty, you can buy it at any time in the next year or so, and agencies such as Wholesale Warranties and Good Sam will probably give lower prices than the dealer offering.


Gap insurance might be a good idea if you must have a 20 year loan.  Financing an RV for more than 10 years pretty much guarantees you are "under water" for much of the loan duration, almost surely for 15 or more years of it. A collision or comprehensive total loss in that time would leave you holding the bag for a large loan balance. The real solution is to avoid such a long loan on a depreciating asset, but you probably don't want to hear that.
The Tire Protection insurance is just plain expensive and a poor bet in my opinion.
 
Have you thought of looking for the same model 2-5 years old.  You save the huge depreciation loss, all the punch list should be fixed and if you buy from some one who used it a lot it should be in good condition.

Personally, I would just as soon take any lumps as they come along.  Of course I trust my own judgment and I never listen to salesmen,  I was one for 40 years. 

We bought our 2008 TT in 2013 for 35% of new price and it has never has any need of repairs other than flooring and adding shelving in the bathroom.  We live in it 6 months of the year.
 
Gap insurance comes with our Good Sam RV insurance so check that angle.

I agree that fee is extortionate. I wouldn't be taking it. You can get cover elsewhere for much less and if you consider the depreciation then you will be paying way over the odds.
 
Gap insurance comes with our Good Sam RV insurance so check that angle.
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I'm guessing you are talking about "replacement value" or "agreed value" coverage, which is indeed a way to cover the potential "gap" between a loan balance and market value.  However, saying it "come with our Good Sam RV insurance" kind of glosses over the fact that there is a substantial extra premium for that coverage vs "actual market value". Probably wise to compare costs both ways.
 
Gary RV_Wizard said:
I'm guessing you are talking about "replacement value" or "agreed value" coverage, which is indeed a way to cover the potential "gap" between a loan balance and market value.  However, saying it "come with our Good Sam RV insurance" kind of glosses over the fact that there is a substantial extra premium for that coverage vs "actual market value". Probably wise to compare costs both ways.
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Gary you are right that comparison is the way to go. Our insurance is very high not having US driving licences but the replacement cover for trailer was $43 plus lur $500 deductible. That is for 6 months and of course you need to maintain cover with them to have it for original value i believe.
 
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