Extended warranty on coaches good investment ?

[nova 42qd]

Originally Posted by skigramp

Warranty companies are similar to casinos in the sense that they expect to "payout" a majority (let's say 80% as an example) of the premiums they collect. They use the other 20% for processing and profit.

When you go to a casino, and put money in the slot machine, the casino knows they will get their share (for operating expenses and profit) ... and if you go there and gamble long enough that over the entire course of time the casino will keep it's share ... and you will end up with less ...

Over the short haul, you may hit some jackpots and win ... but if you keep going back you are bound to lose.

A certain class of statisticians study this by simulating this on computers.

What does this have to do with warranties ... when you submit a claim and they pay that is a jackpot ... all the other folks who paid their premiums that day and did not file a claim got nothing in return...

Should you buy a warranty ... maybe if you do not have the financial resources to pay your repair bill on your own ...

Over the life of your motorhome (and all like it) it is unlikely that you (and the other owners) will be paid more in claims than the total premiums (that all of you paid)

I don't think a casino is the best example since if you play long enough they will get everything.

In any event the warranty is insurance...just like any other you may have. The premise is shared risk so that payments made by the pool (many) cover the loss suffered by the individual.

[gbaroni]

That was not the total repairs for three years. I renew my policy every year. The first year I had the AC Compressor on the enging go bad, one HRH leveling leg and some other item (would have to check my maintenance and repair journal for details). My comments were based on 2014 repairs only.

[jerichorick]

With all of the electronics, and other not easy to fix yourself stuff on board I think they are a good idea. My '05 Vectra had many issues and the extended coverage saved us a bundle. We have not had to use Cornerstone yet but have heard good reports. The $500 deductible keeps trivial claims down.

[sstehman]

Even though it was a pain dealing with the warranty company and I am thankful I had Cummins PowerPro on my side, they just managed to have $1700 of a $3300 overall bill paid under the warranty. I've only had the coach since April. Two weeks into having the coach the camera went out and they paid another $450 towards that repair.

Score right now is $2100 for them and $1900 for me and a lot of lessons learned.

And....I had one tire with a 1" slit in it that needed replaced. Ironically, just joined FMCA at the Hershey RV show the week before. Called FMCA and saved $75.00 on the tire.

(And I am praying hard there are no more bills for awhile so I really can retire.)

[Mike and Cha]

It sounds like the warranties can vary quite a bit in price and coverage. We bought ours new and the dealer sold us the warranty for $2000 total. It covers the entire house bumper to bumper for 7 years, with a $100 deductable per visit. So if you have multiple things fixed during one visit, it is still only $100. The Chassis/Drive train ect. is covered under the original warranty for 5 years.

I know it may be overkill with a new MH as some of the things are already covered for multiple years anyway, but it is still peace of mind. You don't get that at the casino, so I don't think that's a fair comparison, at least you have something to show for your money. Even though I can fix many things myself if there is a big money part I need or something I can't fix at least I know I'm covered with a minimal investment. And I've probably blown $2000(or more) at the Casino in the last year.

[XBoater]

Has anyone priced or purchased the extended warranty from Freightliner directly on the chassis?