Extended Warranties

[clockdrfla]

Are the extended warranty programs offered by different companies a good investment?  Is it a hassle to get things repaired through them?  What would be the suggested dollar amount for a deductible?  Thanks

 

[RoyM]

They are a big cash cow for the dealers, the percentage that actually get used is quite low. Put the monthly payment in your own bank account, not theirs, so if you need it there are no arguments.

 

[Dragginourbedaround]

Bought an extended warranty a little over two years ago and it's almost paid for itself.  Would buy another one.

 

[john owens]

We (wife) was told when signing all the paperwork that the deduc would be 100 dollars. First time we used it it was 200.00..So busy signing all the legal crap they give you and they snuck that one by her.....So far repairs have been in the 350--500 range...My wallet is getting a lot of use.  I'm feeling good now I think we have her good to go..Good Luck!

 

[Kevin Means]

I think a lot of it has to do with the type of RV you have. I don't think it makes much financial sense to buy an extended warranty for a travel trailer. There's just no big financial hits you're exposed to (although I do acknowledge that's relative) I never bought one for our previous two gas coaches either, but I did buy one for our current diesel pusher - not for the little things - I can fix most of them myself. But in the unlikely event that our engine or tranny took a dive, it could cost $30,000.00. THAT'S a big hit.

Just make sure you read the fine print. There's a lot of things they don't cover.

Kev

 

[Gary RV_Wizard]

I'm with Kevin. Remember, this is insurance for major repairs, not an investment program and not a way to avoid all out-of-pocket expenses. Do you expect to "break even" on your homeowner's policy, or your car insurance? Of course not. So don't let the sales guy persuade you that their extended warranty will "fix everything that can go wrong" and "pay for itself in a couple years". It might, but the odds are against you from the start. A few will collect more than their premiums, but most will not. It's the nature of insurance.

Sure there are some fairly expensive things, e.g. air conditioners and fridges, but they don't fail all the time either. And they won't be covered 100% either. Not just the deductible, either. There will nearly always be parts of the bill that aren't covered, for various obscure reasons.

 

[NickB]

There is a huge variation in coverage between different companies and even between their different policies.

What you're looking for is an "Exclusionary Policy" ideally. This means that rather than working off small list of covered components, they're working against a list of excluded components. This makes the grey areas in your favor versus the warranty company. It also means a more expensive policy.

Service contracts can be high margin "cash cows" for a dealer, but understand that the dealer sets the pricing and not all dealers double the cost. Many of us are happy to make a few hundred bucks off a policy and enjoy the satisfaction and return business that comes from a happy covered customer.

I don't know how you can qualify a statement like "the percentage that actually get used is quite low". I can tell you that we have over 150 customers a year that are happy to pay their $50 deductible while the warranty company pays the rest of the bill. To put that in perspective, we only sell about 300 RV's a year.

 

[Back2PA]

Bought an extended warranty a little over two years ago and it's almost paid for itself.  Would buy another one.

Ditto, in less than a year. 100% of the issues were chassis related.

 

[Dragginourbedaround]

Not all extended warranties are bought through dealers. We bought ours from a third party.