Are Extended Service Agreements Worth It?

[AggieDad]

Originally Posted by RJsfishin

I really cannot believe the outrageous prices some have paid for an EW. ...

... I have advice for all those who came anywhere close to even breaking even on an EW, (a very small %'age... trust me) stay away from the casinos !!

RJ - I think you might make that same argument about any insurance. You have it, but hope you won't need to use it.

How much have you paid for homeowner's insurance over the past xx years? How many claims do you have? Bad bet? Stay away from the casino?

How much have you paid for collision insurance over the past xx years? How many claims do you have? Bad bet? Stay away from the casino?

How much have you paid for life insurance over the past xx years? Do you really want a claim? Bad bet? Stay away from the casino?

An extended warranty is just that -- an insurance policy. The difference is that you pay for the policy entirely up front rather than periodically. This makes the cost seem onerous to some.

However if you have just bought a 5 - 8 year old coach, some insurance may be a good idea. Maybe you'll use it enough to come out ahead or break-even, but probably you won't. After all, no insurance company expects to pay out more than it takes in. But part of what I paid for was peace of mind -- and I get that whether I ever make a claim or not.

In other words, this is not a black or white issue. It is shades of gray (50?). So which shade of gray keeps your wallet in pocket and which shade compels you to take it out? Each of us has to make our own choice.

[King Richard]

I have had one since purchase of my Camelot. I feel it has been great to have, as we full time now. I have has many items that needed replacement, and the company worked with me in every case. I have some mechanical abilities in diagnosis and have been able to do most replacements myself. They waived the deductible and I provided the diagnostic check out. This forum has been extremely helpful with investigating problems and finding troubleshooting guides on many items.
The calculation for expense, they made money, if I had a serious problem???? Who knows what it might have cost? The did cover over $2500.00 in repairs though. I had to pay out only 1 deductible and diag. fee. That was due to a greedy technician.
Many items have self diagnostics, anyone can read it out, free. But, he had to charge.
Oh well, we all have to make a living some way. Just won't return there.
Bottom line, things wear out and fail, $5000.00 is a lot of repair $$.

The insurance company claims dept. admin. gave me a cell phone contact to use day or night, to get assistance, and has contacts all over the US to guide you to a repair facility if you have the need. That has a lot of value and gives some peace of mind when traveling.
Best wishes and safe travels!!

[UFO Pilot]

Originally Posted by RJsfishin

I really cannot believe the outrageous prices some have paid for an EW.
And the truth is, if you turn it down, let them snibble and whine about it, then make them an offer of less than 1/2 the price, they will accept, or at worst, come back w/ a counter. And that again will show you the fortune they gain off EWs !

I have advice for all those who came anywhere close to even breaking even on an EW, (a very small %'age... trust me) stay away from the casinos !!

I paid $3500 for my warranty and had almost $11000 in repairs covered. Just like the casinos, some win and some lose. I just purchased another policy and hope I don't have to use it, just like my other insurances. Peace of mind is worth a lot to some folks.

[Ray,IN]

Well, today Good Sam extended service contract paid my repair bill for the Norcold "eyebrow" and holding tank valve replacements; $1,048, That brought their out-of-pocket to just over $5,000, which is $200 more than contract cost. Still have 17 months remaining on contract.
How many of you that poo-poo extended contracts have banked that much for unexpected repairs in 18 months?

[TomBr]

One point not yet mentioned is that some RV's, like some cars, turn out to be maintenance nightmares, sometimes due to the vehicle and sometimes to the user. You now have a history of what yours is under your use conditions. You also know everything on the unit is aging and that all things will eventually fail. With several good years under my belt I might be tempted to forego the policy.

[RJsfishin]

Of course ALL insurance companys are going to be on the winning end of the stick,.....hardly needs to be explained to normal people.
But this thread is about Extended warrany ins, and its outrageous prices,.......so really should be limited to that.
If a piticular vehicle or any other item is known to have faulty design or workmanship, it could be very profitable to pay those prices.
The class A MH I bought used, had a history of 3 blown rear duals, causing damage to the extent of $12K. (reason unknown) Out of curiosity I checked on the extra ins to cover that, and it was a lousy $15 a year w/ $100 ded. I bought it. If ext warranty ins was priced accordingly, I would probably have it too.
At no time did I ever advise anyone to not buy an EW. I'm just commenting on what a huge rippoff it is for the average person. But don't believe me, look up the stats.

[rodz]

I bought it for my Monaco. They paid out in repairs more than the policy cost and I got a 1,700.00 check back when I sold it early. I bought it again for my Winnebago Journey and never needed it. I bought both of those MH's used. DP's didn't start getting popular until around 2000. Those older ones are what people are now buying getting a high end DP at an affordable price and they're the ones that should have coverage. When something goes down on a DP it gets crazy expensive very fast. A repair can be several thousand. I wouldn't get it on a gasser but I wouldn't be without it on a DP. With personally knowing of several major repairs on 10 yr. old DP's I chose to get a new gasser this time instead of a used DP. Your choice, be prepared.