Help with extended warranty decision`

[garbagecop]

Hi all,

I'm new to this board.  My hubby and I just purchased our first pre-owned coach.  We've owned new, but needed to buy used to step up.  We think we got a very clean coach, but we believe we need a warranty.  It's a 2003 Holiday Rambler Scepter, our first diesel engine.  We live in Minnesota.

So I've narrowed it down to two, but I'm completely stumped as to which one to choose.

The dealer offered us XtraRide by Protective Group.  It's fully insured with our state.  They say it's exclusionary, but if that's the case, why do they list both covered and not covered components!?  It has a 24/7 conceirge service that could be extremely helpful if we're sitting on the side of the road...which includes tech support to help us trouble shoot any mechanical, electrical, etc. problems.  I contacted an independent warranty specialist who offered the same program on his "short list" as being a premiere program...(true? hype?).  On a 4 yr/48,000 mile program (their Platnum program w/o optional Wheel & Tire) with a $200 deductible, the dealer offered it for $4,400 and the broker for $3,944.  If I chose this route, I would make the dealer match.

The other program is the CSP program from Good Sam.  It's easy to trust a program that is endorsed by such a large organization...but I'm smart enough to realize that royalties play a big part in that sort of thing.  Doesn't necessarily mean the program is better...or even that good.  This program is also fully-insured in my state, and it's supposed to be exclusionary.  But again, they also list both covered and not covered components, which makes you wonder what's missing.  The quote for Premium Gold program with a $500 deductible is $1,051 per year (or $1,392 for a $250 ded.).  Here's the interesting part.  It's annual.  You can insure the rig up to 16 years old, or up to 150,000 miles.

Price-wise, they come out to about the same price for 4 years.  We have never kept a rig longer than 4 years, and I really can't say whether we'd keep this one longer, either.  But it's 5 years old already, so the fact that we could go longer is very enticing.  So is the fact that I would ONLY have to layout $1,051 right now after desecrating our bank account for the trade difference!  But I don't want the cash outlay to be the deciding factor.

Do any of you have diesel rigs and use either of these programs?  When covered is close, how do you decide? I would appreciate any insights you may have about these warranties.

Thank you so much,

Lynn O. Minneapolis,
[email protected]

 

[seilerbird]

Personally I would never buy and extended warranty for anything.

 

[Ned]

Those prices are about normal for a 5 year old coach, but do more shopping.  An extended warranty is just another insurance policy, you hope you never need it but if you do, you'll be glad you have it.  We're on our 3rd extended warranty and are about even on the first two.  The current one is only a few months old and we haven't had any claims, yet.  If you feel comfortable with self insuring, then you don't need it, but if you like the security knowing a major failure will be covered, then go for it.

Do get an exclusionary policy and ask about riders for things like electronics.  Make sure things like slideouts are not excluded.

For road service, you can't do better than CoachNet.  They offer the concierge service along with all the other services of a road service.

 

[Marc L]

As a general rule, I decline extended warranty on EVERYTHING.

In order for warranty companies to make money, the extended warranty must be sold at a price higher than the average repair price during the period covered by extended warranty.  So the odds are in their favor, therefore it is better to decline.  Over a long period of time, declining all the time will end up in saving money. 

There are the occasional case of people who buy them and have problems costing them more than the warranty, but those are not the norm.

Just think of all the things we bought that did not break during the warranty or the period covered by the extended warranty.  All that money saved will more than pay for any repair I got.  One salesman sales pitch was that I would not save that money and have it on hand.  True, but I did use that money on other goods that I use.  Even with the interest on a credit card if I had to do repairs, I'm still be ahead if I tally up all the extended warranties I was offered and declined VS repairs I had to do.

 

[Gary RV_Wizard]

I looked at the CSP but felt it was expensive. At $1392 for the $250 deductible, you are paying almost $5200 for 4 years, whereas the other  policy you cited is $3944 for $200 deductible.  And I didn't see anything in CSP that guaranteed the rates would not increase each  year.

I can't explain why an exclusionary policy would list included items - sounds like a good question for the selling agent.  I would want to see something in writing that says "everything is covered except..." There are enough loop holes in an extended warranty without having to guess.

You can get 24/7 road side service with tech support and unlimited towing for $109/year from Coach-Net.

My policy is from RV Shield. I know nothing about the company but they have paid my claims promptly and with zero hassle.

 

[seilerbird]

In order for warranty companies to make money, the extended warranty must be sold at a price higher than the average repair price during the period covered by extended warranty.  So the odds are in their favor, therefore it is better to decline.  

This is exactly the way I feel about all insurance policies. They are just like Las Vegas or the Stock Market, just pure and simple gambling, and the gambler never wins. The only insurance policy I have is my RV insurance, which I am forced to have via a state law. It is nothing more than a rip-off.

 

[Gary RV_Wizard]

Insuring or not insuring is a gamble either way. The basic question is whether you can afford to pay the bill if you bet the wrong way.  I don't buy extended warranties for anything else, but motorhomes have a large number of expensive systems that can fail. Repair costs of $3000-$10,000 are common enough that I was willing to buy some peace of mind. I get some of my repair cost insurance money back in any case (there are always some repairs needed) and in the worst case I get much more.  So far I've recouped about half the premium cost for my extended warranty and expect I will get at least a few hundred $ more before it expires. If all goes well, I will have paid a couple hundred $/year for risk protection (peace of mind). And there is still the risk of an expensive repair in the next two years.

 

[Marc L]

Extended warranties are somewhat like an investment.  The buyer has to weigh the cost VS the risk and go with what they are comfortable with.

 

[Ned]

There would be less confusion about these products if they were named for what they really are, insurance policies, and not warranties.  Treat them just like any other form of insurance when evaluating them.

 

[Scepter 1]

Insuring or not insuring is a gamble either way. The basic question is whether you can afford to pay the bill if you bet the wrong way. I don't buy extended warranties for anything else, but motorhomes have a large number of expensive systems that can fail. Repair costs of $3000-$10,000 are common enough that I was willing to buy some peace of mind. I get some of my repair cost insurance money back in any case (there are always some repairs needed) and in the worst case I get much more. So far I've recouped about half the premium cost for my extended warranty and expect I will get at least a few hundred $ more before it expires. If all goes well, I will have paid a couple hundred $/year for risk protection (peace of mind). And there is still the risk of an expensive repair in the next two years.

Gary,
Can you share the company you chose for warranty and do you recommend?

 

[scottydl]

This particular thread is 13 years old, but RV extended warranties are a pretty common discussion topic here. If you research the topic using the “magnifying glass” search function at the top of the page, you can probably find some more recent provider names and experiences.

 

[Gary RV_Wizard]

Can you share the company you chose for warranty and do you recommend?

13 years ago and I've forgotten. I bought it thru Warranty Direct (a broker), but they are no longer in business