HELP !!!! - RV-Dreams Community Forum

fugazi chef · RV-Dreams Community Member

HELP !!!!

RonC · RV-Dreams Family Member

Depends ... Extended Warranties are a bit like insurance. Definitely a place for it, but if you can afford to self insure, then don't get it, but if a $3,000 repair bill would be unmanageable (for you) then get it. There really is no right answer.

Honeydeaux · RV-Dreams Family Member

I personally chose to avoid them and have done so most of my life. I can't recall a time when I regretted my decision.
I will say that if you are considering a warranty arm yourself with the best information you can get. Fully understanding the product is a must with any extended warranty. Howard wrote a easy to understand break down of RV warrantys and I would highly recommend you read it thoroughly!
Knowledge will empower you to make the right choice for you.

Here is address to Howard's post.
www.rv-dreams.com/rv-extended-warranties.html

Regards

LarryW21 · RV-Dreams Family Member

Money makers for the insurers, not the insured in most cases.

Barbaraok · RV-Dreams Family Member

We purchased a DP and despite all of the naysayers, we put 10% of the purchase price into a repair/replace fund and add a set amount each month that covers yearly maintenance, repairs, remodels, tires, batteries, etc. 11 years and while we have had our ups and downs, we are still going and the fund has always been in the black. The key is to add EVERY single month so that when you need 4 new tires, you have the money to pay for them. When you need new batteries, or to fix a lift pump, you have the money there.

Remember, you will hear from a few who got more back than they paid in, but most people will not. Otherwise they could not stay in business.

Someday · RV-Dreams Family Member

We've followed Barbs lead with the 10% of purchase price and adding to it on a consistent basis. It's worked well for us including needing a replacement engine in 2012 IIRC. We've had our Gas MH since new in 2002 FWIW.

As Barb says there are a few that have found their warranties more than worth while, but for the most part, insurers are in business to make money of course! I think it was Mark and Emily Fagan of www.roadslesstraveled.us that wrote on how they found benefit several times with their warranty program. Might be worth reading on their writings in that regards.

As Mike and Karen said above, just make sure if you go the warranty route you thoroughly read the small print and "understand" exactly what it covers and under what circumstances.

BiggarView · RV-Dreams Family Member

FWIW, IMHO extended warranties are unnecesary insurance. For what you spend you could pay with a credit card (yuck) and then pay it off ASAP and be no worse for the wear relatively speaking. Ditto Barb's excellent repair/replace fund idea. Get in the habit of planning and budgeting for repairs and setting aside money for them. If you have little or no need for the funds, great... money saved. But if you do, then the angst of how you are going to pay for a repair is eliminated. RonC has a valid point if repairs are going to be a cash flow issue then it could make some sense to go that route, but I'd look at other options such as previously suggested before going that route. There is always more than one way to skin a cat.

Also agree with Barb and Someday that insurance companies are in business to make money so they expect pay out less in claims than they rake in with premiums. Their game, their rules... don't fool yourself that you can rig it in your favor, you'd be the exception.

Consider this, corporations self insure because it helps their bottom line in the big picture... so look at yourself as a tiny corporation and do what they do. Your pocket book will thank you later.

In the movie "Wargames" the computer sums this up perfectly... "the best option is not to play"

TheNewhalls · RV-Dreams Family Member

I think it depends on what you're buying. If you're buying a TT or a 5th wheel then an extended warranty might not be needed. The cost to repair most items might not be that expensive. If you're buying a used motorhome the cost to repair can be very expensive. A year ago we had to have our long driver's side slide repaired to the tune of $2600, three months later it was the jacks pump and motor $1100, two months later the awning motor went that was $800. They were all paid for by our extended warranty that we bought from Wholesale Warranties. This warranty has covered two coaches. No problems with the warranty company on any of our repairs. We have three years left on our extended warranty and we are in the black playing with house money.

Barbaraok · RV-Dreams Family Member

Gene & Ellen, you are the exception, and all of those items were House, not chassis, and could also go out on a TT or 5er. If you feel better having that extended insurance policy then it is right for you.

LarryW21 · RV-Dreams Family Member

Barb's plan is a good one.

RonC · RV-Dreams Family Member

LarryW21 wrote:
Money makers for the insurers, not the insured in most cases.

That is true for life insurance and vehicle insurance also. They are betting you'll live or drive accident free and the policy buyer is betting on the opposite outcome. Insurance companies are right more often than not, as is also true of extended warranty sellers. It is their business model and their income must exceed their expenses or they go out of business. They are not a charity, nor do they intend to break even. They want to be right far more often than not. So it's a gamble ... if you happen to be one who benefits from an extended warranty, and most people don't fit that description, it can be a lifesaver in some instances. Again, if you can tolerate/manage the risk, don't buy the warranty. There is no right answer, it's a personal choice.

-- Edited by RonC on Monday 10th of April 2017 06:12:21 PM

-- Edited by RonC on Monday 10th of April 2017 06:17:01 PM

-- Edited by RonC on Monday 10th of April 2017 06:17:32 PM

-- Edited by RonC on Monday 10th of April 2017 06:18:23 PM

-- Edited by RonC on Monday 10th of April 2017 06:19:20 PM