Extended service (Good Sam) lesson learned

[navychaps]

Sometimes it pays to do the math. I have figured out that I have paid GS Extended service plan over 109,000 dollars in premiums. They in turn have paid out approximately $3000 in claims, $2000 of which they paid only after I caught the Adjuster they sent to the shop conspiring with the mechanic to deny my claim for what they claim was a failure of maintenance that "did not happen," prior to my owning the rig ( I was told at purchase of the plan that I could not be held liable for something a previous owner failed to do). This week they denied another claim costing me $1200 out of pocket and refused to pay diagnostics for a second issue that could have cost me up to $3200 out of pocket. I could have bought a new rig for what I have paid GS. To this point I say, good riddance.

[Kahoona]

Agreed. Those insurance plans exist to enrich the seller of the plan. If the payout was less than the cost they would go out of business right away. I set money aside instead and pay out of pocket. The words "Good Sam" alone should tell you to be careful.

[Crasher]

Your experience and thousands like yours are the main reason the ESC is such a big profit center for the company and the selling dealer. The sad thing is that all it takes are a few satisfied owners that report more claims paid than premiums paid that keep the gullible people buying them. I understood this over 50 years ago and have saved thousands even after paying for needed repairs.

[Gary RVRoamer]

It's the very nature of insurance - many pay more than they receive so as to provide greater benefits for the small number who have high dollar claims. If you thought the repair insurance was always supposed to pay for itself, you fell for the typical salesman's BS.



$109k in premiums? WOW! You must have bought a lot of ESP-type insurance over the years. Even at a typical $5k-$7k for a 4-5 year motorhome plan, that would be 15-20 ESP contracts.

[navychaps]

Originally Posted by navychaps

Sometimes it pays to do the math. I have figured out that I have paid GS Extended service plan over 109,000 dollars in premiums. ... I could have bought a new rig for what I have paid GS.

I made a math error that I need to correct, does not change my feelings or premise I said $109,000 when the actual number is $25,000. Still cancelling! Wish I could buy a new rig for that!

[harleyjt]

Originally Posted by navychaps

I made a math error that I need to correct, does not change my feelings or premise I said $109,000 when the actual number is $25,000. Still cancelling! Wish I could buy a new rig for that!

Yeah I was trying to figure how in the world someone could pay over $100k.

Anyway, its just insurance. For the few that have a catastrophic engine or transmission or drive axle failure, its great. For anyone else, its just protection against those catastrophic repair bills. It just depends on your degree of comfort in assuming risk. Insurance, plain and simple.
jt

[Kahoona]

Originally Posted by Gary RVRoamer

It's the very nature of insurance - many pay more than they receive so as to provide greater benefits for the small number who have high dollar claims. If you thought the repair insurance was always supposed to pay for itself, you fell for the typical salesman's BS.
.

Agreed. Some of the Office Despot stores ran laptop computer prices near cost and the big money was in the insurance. They would refuse to sell without insurance.
Insurance is for disasters and things I cannot possibly pay for. Anything less is not worth it.

[RRR]

Originally Posted by navychaps

I made a math error that I need to correct, does not change my feelings or premise I said $109,000 when the actual number is $25,000. Still cancelling! Wish I could buy a new rig for that!

Stick with the original amount. It makes a better story.

[Ray,IN]

No ESC will pay diagnostic fees. "Adjusters" are independent, they do not work for GS, wholesale warranties, or other extended contract issuer. The one I knew actually worked with 5 different ESC issuers.
My experience with Good Sam ESC was entirely opposite, it paid out more than my premiums + deductibles. If there is a secret, it is to read and follow the fine print.

[NXR]

That number ($25,000) is astonishingly high. We were quoted just over $5,000 for seven years of extended service through Wholesale Warranties.

Ray

[RVPioneer]

How’s everybody doing on homeowners and auto insurance?

I’ve had a couple of auto claims that have come nowhere close to what I’ve paid in premiums over the years. No home owners claims, so I’m basically out a boat load of cash for insurance I never needed, but was forced to buy.

An ESP is a personal decision made of our own free will. It isn’t mandatory and no one made us buy it. If it isn’t working out, don’t renew it.

We had an AC unit replaced under a GS ESP with no issues. I’ve gotten more out of the GS plan than I have from my home owners plan, so if I were inclined to pitch a fit, it would be about the home owners plan.

[navychaps]

Originally Posted by RVPioneer

How’s everybody doing on homeowners and auto insurance?

I’ve had a couple of auto claims that have come nowhere close to what I’ve paid in premiums over the years. No home owners claims, so I’m basically out a boat load of cash for insurance I never needed, but was forced to buy.

An ESP is a personal decision made of our own free will. It isn’t mandatory and no one made us buy it. If it isn’t working out, don’t renew it.

We had an AC unit replaced under a GS ESP with no issues. I’ve gotten more out of the GS plan than I have from my home owners plan, so if I were inclined to pitch a fit, it would be about the home owners plan.

This is not about pitching a fit, it is about coverage When I have used my auto or homeowner's insurance, they never tried to come up with ways not to pay. This company constantly does and I have had my last of them. Yes no one made me buy this plan, that once again is not the issue. My home owner's plan is much cheaper and they have never failed to cover or pay and they have never attempted to find ways to not cover my issues and I have used them many times.

To another comment, that adjusters do not work for them, that may be so but they have a list of "preferred" adjusters whom they use all the time and I am quite sure independent contractors prefer to please the one's who send the check vice the insured.

Once again, not pitching a fit! Just a warning to those who are on the fence about these plans, buyer beware.

[navychaps]

Originally Posted by NXR

That number ($25,000) is astonishingly high. We were quoted just over $5,000 for seven years of extended service through Wholesale Warranties.

Ray

Why yes, yes it is!

[navychaps]

Originally Posted by RRR

Stick with the original amount. It makes a better story.

It really does but I refuse to lie or not correct my error. I really want to be as honest as I can about this issue.