Is extended warranty worth the cost?

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I have had both kinds of luck on extended warranties. I've been glad I had one a couple times, and felt it was a waste of money a couple times. Darned if you do, darned if you don't for sure.
 
My feelings about extended warranties is similar to walking into a casino...

Once in a blue moon you'll walk out a winner but the majority of times you'll wind up a loser.

 
My feelings about extended warranties is similar to walking into a casino...

Once in a blue moon you'll walk out a winner but the majority of times you'll wind up a loser.
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That's true of any insurance. The notion is that when you win, you win big, but otherwise you lose [relatively] small amounts.  You insure for big $ items that have some potential for catastrophic failure, and then hope you never need to collect on it. The RV sales people, though, try to sell the repair policies (aka "warranty") on the basis of them covering ALL required repairs. First of all, that is misleading (the policy does not cover everything), and secondly it is a very poor use of an "insurance" type of policy. You are sending your money to somebody else who may or may not give it back when you need a repair, and they charge you a fee for the service!  Big money maker for the sales person, though.
 
Gary RV Roamer said:
That's true of any insurance. The notion is that when you win, you win big, but otherwise you lose [relatively] small amounts.  You insure for big $ items that have some potential for catastrophic failure, and then hope you never need to collect on it. The RV sales people, though, try to sell the repair policies (aka "warranty") on the basis of them covering ALL required repairs. First of all, that is misleading (the policy does not cover everything), and secondly it is a very poor use of an "insurance" type of policy. You are sending your money to somebody else who may or may not give it back when you need a repair, and they charge you a fee for the service!  Big money maker for the sales person, though.
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Nicely said.
 
scottydl said:
You just illustrated why the cash "self-insuring" process works well.  ;)  Breaking even is perhaps the same as never needing to buy it in the first place.  Cash can go a lot further too, because most folks will do whatever they can to keep from spending it.  When a person has prepaid for a warranty (or service contract) you may be more likely to make claims, in order to try and break even and make yourself feel better about the purchase.  ;)  Deductibles, percentages, and loopholes can often leave contract-holders paying money out of pocket along the way too.  Very rarely does extended coverage pay for 100% of all costs associated with every claim.
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Your selective quote ignores my last few sentences. What is your opinion about that?
 
We bought a 4 year extended warranty and it paid for itself and then some.  When it expired we bought a new one and in the 8 months since we've recovered 30% of what we paid.  And we have not had major problems. 

There is another current post on this forum where someone did not buy one and is now looking at an engine rebuild or replacement.  That's a major problem. 

Stuff does happen.  IMHO it happens a lot with diesel pushers.



 
I enjoyed reading the responses related to extended warranty.
We just purchased a 2004 Travel Supreme Diesel Pusher & it sounds like we should investigate an extended warranty.
Is GS the recommended program of choice or are there others?

Thanks
 
The GS ESP program is rife with customer complaints, but many of them are misunderstandings about what the "extended service plan" actually covers. Buyers who fell for the sales line and the term "warranty" become disillusioned when they learn what these insurance policies really cover. You really need to study the policy coverage documents carefully and you should assume that any caveat or exclusion will be rigorously applied. You will not get the benefit of the doubt on anything.

I would get a GS quote among several others, but by no means would I consider it the "program of choice".
 
Try googling 'RV extended warranty company reviews'.

I worked in the IT side of the insurance industry for a while.  During that time I 'owned' the system that computed daily profitability for every part of the business.  They made more money on investments than selling policies.  (They don't leave piles of money laying around gathering dust.) Even though I got my money back (plus some) Easy Care probably still made money overall.


 
We got ours from Easy Care. They're a bit pricier than some others, especially thier premium package, but they had good reviews. If you're primarily interested in an extended warranty to shield yourself against things like expensive drive-train repairs, just remember that you have to comply with all manufacturer service/maintenance schedules. They're very specific about that in the contract.

I've always wondered what an extended warranty company would do if, for example, there were a catastrophic engine failure, and the owner had been performing all their own maintenance. I suppose if the owner had kept all their receipts, used approved parts/fluids etc, and had documented that they had performed all the service on schedule, the company would have to pay, but you can bet that if they're looking at a $30,000.00 payout, they're going to be scrutinizing those things.

Kev
 
Ray said:
Your selective quote ignores my last few sentences. What is your opinion about that?
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The warranty coverage has worked out well for you... that's great!  I hope your good fortune continues if you decide to extend the policy. 

And sure, there is always a risk of something major breaking, warranty or not.  I'm assuming your friend's $33k engine was a diesel, and maybe there are more reasons to consider extended coverage on DPs.  Although I'd recommend that an RV buyer not purchase a $100k+ RV if paying for repairs would be a problem.

It's a gamble as mentioned earlier... but the facts are that the "house always wins" and warranty providers take in more than they pay out on average.  Otherwise they wouldn't be in business. :)
 
Kevin Means said:
I've always wondered what an extended warranty company would do if, for example, there were a catastrophic engine failure, and the owner had been performing all their own maintenance. I suppose if the owner had kept all their receipts, used approved parts/fluids etc, and had documented that they had performed all the service on schedule, the company would have to pay, but you can bet that if they're looking at a $30,000.00 payout, they're going to be scrutinizing those things.

Kev
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The Magnuson?Moss Warranty Act covers this.  Essentially the manufacturer cannot deny a claim of a do-it-your-selfer or if the vehicle was serviced by an independent mfg., only that the specific time line/mileage time lines are met and that the specs of parts and fluids meet the mfg's. requirements.  It is essentially everything done and purchased is documented.
 
Unfortunately, the Magnuson-Moss Act applies to original manufacturer warranties but "extended warranties" are repair insurance rather than a manufacturer warranty. The only thing that matters there is the actual service contract, and the warranty company gets to interpret that first. If you disagree with their ruling, your only option is to sue them for breach of contract. Strictly a civil law thing and no federal or state. Small claims court, where available, may be a practical means of forcing the issue.
 
Any "extended service plan" is a gamble. Myself, if I never use the service I still win big time. NO problems is my goal. Sitting on the side of the road with a knocking engine, having to even think about pulling those "orange" dollars out for repair is a horror not worth the several thousand up front bucks. My plan in a worse case scenario is to make the calls for help, then relax and watch the world rush by.

God has blessed us with a comfortable living and I am not much of a gambler. That said, I use considerable research based on the replacement & expected repairs of the item VS how long I expect to use it.  With any "Extended service plan", IF I FIND the small print is within my plan, then it is deemed just a small part of the purchase.

Just for grins, How much money have we all paid in health service plan? For too many years I really despised the thousands of dollars spent as a gamble that  the possible need for special health service would rear it's ugly head. 2.5 years ago a sudden bursting blood vessel in my head,cost just under a million bucks to fix. My final out of pocket cost was $3,040.26. The miracle part is I have no side effects, and after 1 year, the FAA agreed I could return to flying. 

Like ol Dirty Harry said..." Do Ya Feel Lucky?....

Cheers

 
 
No extended warranty is worth the cost. They represent additional commission income for your sales person, and little more. Plus, those companies look for and are quite successful in finding ways to not pay for repairs represented as covered by a policy. You'd be smart by putting the money into a savings account and use that in case of a major breakdown. Also, take care of your rig by performing preventative and other maintenance and it will be virtually problem free.
 
Gary RV Roamer said:
Small claims court, where available, may be a practical means of forcing the issue.
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From what I understand small claims courts maximum award is only $5000....

That doesn't seem enough to cover most RV claims
 
I guess I must be an exception to the rule. My first real motor home was a 4 year old Itasca Suncruiser. They sold me an extended warranty. It was my first. The cost of the dash AC system nearly broke me even. A few more repairs took me past the cost of the warranty. My experience with my first warranty saved me a little money.

My second coach was new when I bought it and got an extended warranty from the dealer. I might have collected a couple of bucks, but overall I lost money on the warranty, which expired after 3 years. I bought another, which paid for a fan clutch ($1,800) and a host of other things. I kept mental track of the repairs and knew I was ahead of the cost. The warranty company confirmed it when I cancelled it after trading in the coach, I got nothing back because they paid me more than I paid them.

When I bought my current rig, I bought another extended warranty, not from the dealer. That was 3 years ago. While 'camping' at the Freightliner dealer, I am trying to remember all the claims I have filed on this one. So far, I am far ahead of the cost. Repairs to a diesel chassis can be a little pricey. If nothing more happens between now and the expiration of the warranty in a couple of years I'll still be ahead by thousands.

I read the contract carefully and adhere to the rules of it. I follow up and make sure the service providers follow the rules. Since they took my money and signed the agreement, I have no problem filing claims that meet their requirements.

If you're buying a new rig, maybe you don't need one right away. If you buy a used rig, consider carefully and shop around for it. On others advice, I bought an 'exclusive' warranty. That is one the excludes some items and includes everything else.

I don't have any connections to any warranty company, I am just telling my story. 
 
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