Are Extended Service Agreements Worth It?

[forest]

Originally Posted by rseymour

We have a 2008 Winnebago Adventurer. We purchased an Extended Service Agreement at the time we bought our RV new in 2007. That Warranty is due to expire on July 9, 2014.

To continue the Warranty for 4 more years will cost $5182.00 with $100.00 deductible. It does cover a lot of major and minor breakdowns.

We have XRide Protective.

Does anyone have an opinion to offer us on this type of protection?

I guess the question to you should be, how much of that original warranty did you use?

[Sky_Boss]

Originally Posted by forest

I have found that many repairs done with warranty companies end up costing much more than if they are paid for by the customer. An example would be where a dealer says the hot water heater needs replacing. I have never had to replace a complete water heater, but a circuit board or electrode may be bad. So the guy who bought the warranty feels all warm and fuzzy because the warranty company has paid for his new HWH, at a cost of $900. The guy who is paying out of his own pocket put in a ignitor board for $200.

IMO, I like the put the money in high interest account theory, and call that your warranty.

I hear what you are saying and your example could make sense IF the EW company chose not to have an inspector look at it. In my case the HWH tank was leaking. So far MY experience has not resembled your example. In fact, I just had a warrantee job that was the opposite. And YES...shocked the heck out of me. They replace worn drive axle air bags that had not yet started to leak and both tag wheel inner seals that were "weeping" but had not failed. On top of that, they are replacing a front engine seal that is showing some signs of a VERY MINOR "leak" that one mechanic told me he wouldn't mess with it if it was his coach and had to pay for it.

Listen, I'm not trying to say your observations are wrong because you have seen what you have seen. I'm just saying that my experience has been the total opposite of yours. I won't even try to say my experience is what the majority of folks do.

Let me also say this about bankrolling your own repair fund. Unless you have a whole lot of money set aside and getting a very healthy return (never mind 2008-2009 market problems), you could return enough money to pay for an ESW. That is cool. However, no one (at least in my income bracket) has ever been able to prove they could make enough interest in investments to pay for an engine replacement or at least a major overhaul. OTOH, if one has had the "average" luck of avoiding these things and only has to deal with the more typical and less expensive things that might be covered by a warrantee, then they are probably ahead with any reasonably good investment strategy.

Now, if some investment wizard can tell me how I can invest $20K - $30K in a moderate to low risk tool and double that in a few years when my ESW ends...I'm all ears. LOL

OK...FOLKS...I'm not trying to turn this into a manhood contest on the subject of ESWs nor Investment strategies.

My last comment on this subject (I KNOW...you hope so. LOL) is that it still boils down to what I have said earlier. Decide what risks you want to take, consider the odds and make a choice based on your gut feeling. I did and it has paid off for ME.

BTW...until Uncle Sam turned off online poker, I was a successful player that understood odds. Odds don't guarantee anything. They are just tools to consider when deciding to play your hand and when to fold.

[Old Scout]

Lots of stories here---some good, and some not so good. Risk tolerance and gambling are probably the key words here. Only difference is that in Vegas, you generally know the odds--with EWs the "house" keeps all the rules. Keep detailed notes and receipts for everything you do--from the day you bought your rig, and follow their claim procedures exactly...would help if you are a lawyer too. Bottom line--you dont know the "odds" nor the long-term financial stabilty of the company--they play the game with your money in their pocket--EWs tend to pay on small items but something like an engine or tranny replacement--get ready to "prove" it wasnt your fault......so roll the dice and good luck

[Cwasp]

I have little to add on whether they are worth it or not... However, I will tell you my experience with the Jayco warranty folks.
I just got back from a short stay near Buellton, Ca. I had problems with a slide out that was stuck about halfway out. Since I could not travel that way I called the warranty folks. I told them the problem and was told all techs were busy at the time but would receive a call later.
I got bored and started to look at the slide drives and found a bolt coupling the two drives missing. I searched and found the bolt but no nut. Apparently whenever Camping World folks did some work on the slide previously they left off the nut and the bolt eventually fell out. OK I'm happy. I moved to another location about 50 miles away and had problems with my tankless water heater not making hot water. Comes on I hear numerous clicks but does not light. I also developed a water leak under the galley sink. Calle warranty service again, now keep in mind I had not received a call from the first service request and this was 3 days later.
The warranty folks acknowledged I had the open call but was not in the least concerned I never received a call back. They said they would check for the nearest repair shop and call me back, and they did, the nearest shop was 300 miles away and would have to be there this Monday... Labor Day!
I told them of a shop that could do the repairs back at my original site ans was on 50 miles away and they would come out to my camp site.
I was told if I did that it would void my warranty!
I am in the process of contacting Jayco and if all this is true I will ask for a refund on my extended warranty I paid dearly for!
OH yeah I have a 2014 Seneca with 3700 miles as of this last trip! Nuff Said!

[SpursMVP]

We had an ESW from Good Sams for 2 years. It certainly gave me peace of mind thinking it would cover most issues until we made our first claim in regards to a leveling jack.

We had the "Seals/o-rings, etc" coverage included in the policy and one of the jacks went out due to the seal going out. My goodness we fought (myself and the qualified repair facility) with them for 2 weeks, including escalating up the food chain, to no avail. They kept reverting back to the seal failing due to an "external factor" (ie dirt) which the repair facility photographed the piston, etc so show how clean it was.

We cancelled the policy, got our refund and moved on. The theory here is if they balked on this pretty straight forward repair, what would happen if its a CAPS fuel pump on our HR which runs $4-6k? What if its the motor?

Anyhow we have saved the $1k+ annual premium for the past 5 years and just had to have our fuel pump worked on to the tune of $2k. So far I figure we're still ahead. Good luck in your decision because there are many who love the ESWs and those who don't.

[okcnewbie]

My two cents.....
If you can self insure and have the money available for the repair than these don't make sense. it's not the same as car insurance. That's mandatory.
If you would have to postpone your FTing or buying your RV because you couldn't afford the repair than consider the extended warranty.
You don't know what tomorrow holds. I've heard many people say that they wish they would have bought their RV and retired earlier.

[RJsfishin]

But,......if a person can afford the pmts on the EXTW, pmts on the repairs will be less,.......again, if you are the average person.

[dezolen]

Or they would be out of business. I'm sure they are making the most money and paying out a lot less than they take in.
I rather take my own chances. 4 rv's so far and none were in need of any dealer repairs. I'd say I'm well ahead. $$$$

[bobkathy95]

Rv insurance is like buying a generator for your home - you may never need it. But if the power goes out, you are the envy of the neighbors. It comes down to "what is peace of mind worth?". That being said - not all polices are created equal. You can call 10 places and get 10 different rates for what seems like the same policy (and in most cases is). Try Wholesale Warranties.com - that is where we found the cheapest "full coverage" policy with the highest rating. Note: if you use a Florida address, you will either not find coverage, or, it will be MUCH higher than anywhere else. This is because Florida is the ONLY state that classifies these as insurance policies and therefore regulates their prices.

[Scooter]

What did you do, Forrest? You can find a good service contract for about $800 a year, if you are still pondering.

[anotherone]

I have wholesale warranty. Got my rig in feb and purchased a $4200 warranty.
Had $3800 worth of work done in aug and when I get home this month I will be all caught up $$$$$ . I have a $50 deductible and the warranty will have totally paid for itself with 4 yrs to go.

[AggieDad]

Well, as someone else said earlier, "it is a simple bet."

For me the bet turned out pretty good. But it was easy to make because it was an 8 year old, 2006 coach. No matter how little the previous owner used it, everything is 8 years old.

My bet was that things that are 8 years old have a reasonable probability of failing. It has turned out to be a good bet. I have now at least broken even, with five years left on the policy.

My only problem with these plans is that if something goes wrong when you are on the road, the prior approval requirement might take some time you really don't have. Then it's decision time, wait or just pay the cost yourself. I can live with that issue. But all you have to do is read all the whiners who write in to the MotorHome Magazine Help Desk to know that there are many others who cannot. You know better than anyone which one you are.

[Ray,IN]

Originally Posted by rseymour

We have a 2008 Winnebago Adventurer. We purchased an Extended Service Agreement at the time we bought our RV new in 2007. That Warranty is due to expire on July 9, 2014.

To continue the Warranty for 4 more years will cost $5182.00 with $100.00 deductible. It does cover a lot of major and minor breakdowns.

We have XRide Protective.

Does anyone have an opinion to offer us on this type of protection?

We bought a Good Sam extended service contract (it is not a warranty) when we bought our MH april 2013. The contract cost $4,800 for 3 years. Good protection IMO. Here we are 18 months later, the contract has paid-out just over $4,000 to date, and we have 18 months remaining. Taking the MH to CW Tuesday to have the black tank valve replaced- 6hrs labor @ $125/hr. + cost of parts. Refrigerator controls "eyebrow" failed last Wed., that is approaching $300 to replace. SO, yes, I think my money is well-spent.
BTW, Good Sam ESC has never questioned any covered repairs/replacements. I just pay my $50 deductible (per repair ticket, not each part) and drive back home.

[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 !!