Service Contracts - California

[mromberg1]

I am almost always opposed to buying any type of 'extended warranty' or service contract on any products I buy. That being said I thought I would at least get a couple of quotes and read the fine print for a soon to be purchased 2017 coach. Unfortunately am getting responses that we live in California and they cannot quote us. Anyone else run into this? I wouldn't most likely never buy one of these contracts but for those that would like to I'm sure that by limiting competition the dealers are making out here in the wonderful state of California.

[R.Wold]

Call a couple local RV dealers, especially if you have a relationship with one so you can trust the response. Ive mentioned that I would probably buy a 5 year warranty on a new coach and was quoted around $7000-$9000 depending on the contract, but no mention of exclusions for Ca. That said, I didn’t get a specific quote either.

[Gary RVRoamer]

I think you have just contacted insurers that aren't licensed in CA. Each state has regulations and not everybody chooses to play in every state. Try some of the big names, e.g. Good Sam, Coach-Net, etc. Better yet, contact Wholesale Warranties (wholesalewarranties.com) and let them find a source for you and get the quote. They can tell you about the terms of the warranty, the price and whatever else you want to know.

[R.Wold]

Originally Posted by Gary RVRoamer

I think you have just contacted insurers that aren't licensed in CA. Each state has regulations and not everybody chooses to play in every state. Try some of the big names, e.g. Good Sam, Coach-Net, etc. Better yet, contact Wholesale Warranties (wholesalewarranties.com) and let them find a source for you and get the quote. They can tell you about the terms of the warranty, the price and whatever else you want to know.

Just sent wholesale warranties a request for a quote. I’ll report back with the results

[dp7]

Originally Posted by mromberg1

I am almost always opposed to buying any type of 'extended warranty' or service contract on any products I buy. That being said I thought I would at least get a couple of quotes and read the fine print for a soon to be purchased 2017 coach. Unfortunately am getting responses that we live in California and they cannot quote us. Anyone else run into this? I wouldn't most likely never buy one of these contracts but for those that would like to I'm sure that by limiting competition the dealers are making out here in the wonderful state of California.

I was told they can sell in CA only if purchased as part of the new coach sale. Can not sell in CA after owner takes delivery of coach. Just another perk for living in the Golden State.

[R.Wold]

This is the answer I got from Wholesale Warranties:

Due to California changing some of its tax laws, we are unable to write a policy to a customer whose sole address is in the state of California. The policy is usable in all 50 states including Alaska and Canada, however, to write the policy we will need an address outside of California. The demographic of our customer’s usually means they have other addresses such as vacation homes, mail forwarding, LLC’s, etc.

Would you have an address outside of the state? Please let me know, and I would be happy to send over a quote.
I look forward to hearing back from you. Thank you for your time and consideration.

So, howdaya like that ?

[mromberg1]

That’s the same response I got. Sounds like they are encouraging us to just give them any address so they can write the quote. Hint hint.

I haven’t responded.

[R.Wold]

I gave them my NH address and I’m now reviewing several policy options. One interesting detail is that raising the deductible saves about $1200 over life of a six year life of the policy - $7200 v. $8400.

I have a lot of homework to do but at least I have something to digest now. Also they offer a $400 discount if you pay for the entire policy rather than paying an annual premium.

I’d have to amortize it out, but at a glance I think you’d make more interest a say 4% on the unpaid balance over the life of the policy than $400. Lots to think about. it will be interesting to compare these quotes to a dealership offering.

[R.Wold]

Originally Posted by mromberg1

That’s the same response I got. Sounds like they are encouraging us to just give them any address so they can write the quote. Hint hint.

I haven’t responded.

Yeah give em Cousin Earnie’s address in Nashville....

[NXR]

Originally Posted by R.Wold

I gave them my NH address and I’m now reviewing several policy options. One interesting detail is that raising the deductible saves about $1200 over life of a six year life of the policy - $7200 v. $8400.

Our home/auto insurance company keeps telling us we should raise our deductible from $250 to $750 or $1,000. I finally got tired and did the math and asked them this question:

"I did the math for $1,000 and it will take five years of the reduced premiums to equal the deductible increase. So if I have one claim within the first five years I lose."

Then they told me the usual story about how my history showed I historically have zero claims. So I countered with:

"Then why would I just not go with the state minimum auto insurance and drop the home insurance completely? That would save me a lot more money."

Their response:

"You win."

And they've ever brought it up again.

Ray

[TXTiger]

Originally Posted by R.Wold

This is the answer I got from Wholesale Warranties:

Due to California changing some of its tax laws, we are unable to write a policy to a customer whose sole address is in the state of California. The policy is usable in all 50 states including Alaska and Canada, however, to write the policy we will need an address outside of California. The demographic of our customer’s usually means they have other addresses such as vacation homes, mail forwarding, LLC’s, etc.

Would you have an address outside of the state? Please let me know, and I would be happy to send over a quote.
I look forward to hearing back from you. Thank you for your time and consideration.

So, howdaya like that ?

That’s funny. Wholesale Warranties is located in San Diego CA and they can’t even write a policy using a CA address.

[R.Wold]

Yeah there’s some wonky policy round here...

[CalifCruiser]

I got the same response from Wholesale Warranties as well. I called them because I had heard a few good things about them and their office is about 5 miles away from me, here in San Diego. I eventually gave up on the idea and established an "RV repair fund" bank account.

[Ljwt330]

This is a very interesting thread. After reading, I did a little research, but could not find any California tax changes that would prevent Wholesale Warranties from selling contracts to sole residents. What I did find is that sales tax on an optional service contract is not collected.


I can only conclude that there was some tax changes for companies doing business with customers who are sole residents of California, and Wholesale Warranties chose not to participate to save themselves the increase cost. This would explain the "encouragement" to declare an outside address for those wanting a contract. I suspect there is a difference between companies that "do business in California", and that "do business for Californians".



I did find that California is one of only a few states (maybe the only state) that will double tax small businesses. Most states follow the federal tax guideline of taxing the income of a business as personal income for the owners, and not tax on the company's income. California does both. The gross income for the company is taxed, and the income received by the owners is also taxed on their individual returns.


So, without getting political, this may be the reason for Wholesale Warranties position regarding sole California residents.