Why I don't like extended warranties

[dave&ginny]

First off, the extended warranty companies are in business to make money. It's your money they want and they get it by selling you on fear of the unknown. I believe you're better off in putting the cost of the warranty in the bank so you have it when it's needed. That way you never have to hear someone say no when a repair is needed.

Case in point:

while at the AIM rally in TN, someone had approached me for some help. He had a 2019 Cornerstone with a leaking outer axle seal on the drive axle. He said that this was leaking on the way to the rally and that a mobile mechanic had been sent to him while on the road just a week earlier. The extended warranty company had approved the repair and he thought all was good. After parking at the AIM rally, he found evidence of the seal leaking again.

After taking his bub cap off we found 3 bolts only finger tight. They had torqued the bolts but used a paper gasket instead the required RVT sealant. Once the paper gasket failed, there was a leak and a gap. I was going to replace his seal because it's not a difficult job but instead they chose to call another service company out in fear of ruining my vacation. Because the repair was a duplicate repair, the warranty company denied to cover the $360. Thankfully they were able to find another mobile mechanic to fix this problem.

The warranty companies aren't in business to relieve your stress. They make money doing as little as possible while operating within the slim boundaries of their contract with you.

The best advice I've ever read was this:

take the money the warranty companies ask for and put it in the bank in a separate account. Then add about $300 each month to this account until you achieve a balance of $15,000.00 to $20,000.00. Once this dollar amount has been archived, stop saving unless you have to use some of the money. It's always your money, at your access to be carried to multiple coaches over the years. No more worries about general maintenance, tires or repairs.

[UFO Pilot]

What Company is in business to not make money? I had 2 Service Policies over 11 years and never had a claim denied. My paid claims exceeded over 3 times what I paid for the policies. Know the rules and follow them and you most likely will be satisfied.

[Gary.Jones]

Dave is wise on this issue. I have read that advice that he quotes and I think that it is also very wise. Most warranties are terrible wastes of money from my reading.... the only ones to even consider are the ones that specifically exclude X number of specific problems. I have heard them described as "Exclusionary Policies". I have considered those, but I had followed Dave's general advice. I have a "diesel fund" that should handle any of the major things except for collision or total loss, and those I pay dearly for insurance every year.

Gary

[RVFunlovers]

I know these type of warranties are a personal choice. I do not take them on my home, vehicles, boats, or RVs.

I realize I could end up paying more out of pocket for a major repair. Maybe I have just been lucky but over the years I believe I have come out ahead.

I have heard many horror stories about challenges with warranty companies. I am sure some are better than others. Just the situation that I have to use the company the warranty company says can be a challenge.

[LWBAZ]

The only remotely compelling reason to buy an extended warranty on anything is peace of mind. (Note that it’s PEACE of mind, not PIECE of mind which I see as often as not on various forums.)

If spending thousands of dollars up front to cover repair costs you might or might not incur allows you to sleep better at night, go for it. Otherwise keep your money in your pocket until you need to spend it. And comfort yourself with the knowledge that the odds are you’ll spend significantly less doing that than you would buying an extended warranty.

Short version: The companies selling extended warranties would be out of business in short order if the odds were in your favor rather than theirs.

[hogdriver]

I totally understand the economic argument of funding your own repair account vs buying the extended warranty. Those warranties are legal forms of gambling.

The contrary to this is, the coach you buy may not be the coach you thought you were buying. My 2014 Anthem was a stinker. I bought that $5000 extended warranty and got every dime back and then some. I “beat the house” on that one.

Just saying sometimes those extended warranty deals work out. I think perhaps buying a coach (Entegra) with a two year warranty might be less reason to buy an extended warranty than a coach with a one year warranty. In my case, I made out.

[TonyMac]

"Why I don't like extended warranties" is like "why I don't like football cleats". There is a time and place for each. Some people don't need them, some do. Some are overpriced, some fit perfect.

My coach was 8 years old when I bought it, with 15,000 miles on it. It was a repo and the original owner had been hiding it, not using it, and basically neglecting it. No damage, just neglect. I'm pretty mechanically inclined, enough so as to know this is a big unknown. A bumper to bumper, 5 yer, zero down, warranty cost me $5200, which I got back when the trailing arms went bad.

[smiller]

Originally Posted by hogdriver

... and got every dime back and then some.

And to add a note, only at the point that you get every dime back and then some have you saved any money. Only mentioning because in most extended warranty threads someone inevitably says that 'they saved $2,000!', without figuring that they spent $5,000 for the privilege.

[Gary.Jones]

Larry

Really.... ? Piece versus Peace? Given the common mis-spellings one encounters in any forum in 2021, that is one of the least disturbing. I won't go through a list of all the more common. if it induces your mouth to make the same sound when you speak it, or if your brain sort of makes the same "sound" in your mind when you read it, close enough.

Jeezch, you are probably one of those guys that says exactly what you mean also....

Gary

[BobGed]

Originally Posted by Gary.Jones

Larry

Really.... ? Piece versus Peace? Given the common mis-spellings one encounters in any forum in 2021, that is one of the least disturbing. I won't go through a list of all the more common. if it induces your mouth to make the same sound when you speak it, or if your brain sort of makes the same "sound" in your mind when you read it, close enough.

Jeezch, you are probably one of those guys that says exactly what you mean also....

Gary

Well at least you have peace of mind in getting this off your chest, but it doesn't preclude the fact that you may receive a piece of Larry's mind for calling him out on the difference. lol

[Kid Gloves]

If you don’t already have $15-20K of mad money sitting around, you shouldn’t be poking you nose inside a new Entegra.

An extended service plan is an insurance plan. Just like life, home, health, auto, disability, dental or vision. All based on the fear of something going wrong that would cost us a chunk of change without insurance.

An ESP isn’t required, it’s optional. It may bring peace of mind to some owners, others may feel it is unnecessary. I know my home and auto insurance company is in business to make a profit. I want them to stay profitable, and in business, in the event that I need to file a claim. So far, no home claims and only one auto claim in the past ~20 years. It’s an expense that I accept, because there’s just no telling when something might go awry out on the road.

[LWBAZ]

Originally Posted by Gary.Jones

Larry

Really.... ? Piece versus Peace? Given the common mis-spellings one encounters in any forum in 2021, that is one of the least disturbing. I won't go through a list of all the more common. if it induces your mouth to make the same sound when you speak it, or if your brain sort of makes the same "sound" in your mind when you read it, close enough.

Jeezch, you are probably one of those guys that says exactly what you mean also....

Gary

Gary, I am not averse to being called out even though it has an adverse effect on my ever-so-tender psyche.

[LWBAZ]

Insurance policies, extended warranties and the like exist along a spectrum.

One end of the spectrum can be illustrated by a recent purchase I made at our local Best Buy store. I bought a USB-C cable for something like $20. For an additional $5 I could have added an extended warranty. I respectfully declined, and I suspect most of you who favor the purchase of RV extended warranties would have as well.

A good example of the other end of the spectrum is auto or RV liability insurance. Like everything covered by insurance policies and extended warranties, the odds are the purchaser will lose money and the provider will make money. But only a fool or a VERY rich person will pass on liability insurance, and many of us add an umbrella policy for even more coverage.

Why? Because the exposure if something goes wrong can be financially devastating if you don't have such coverage.

RV extended warranties land somewhere in between those two examples. Every time this subject comes up there are testimonials from those who won; i.e., collected more than they spent for the extended warranty. Just like the casinos in Las Vegas, some people do win. But for every winner there are significantly more who lose.

Bottom line, each owner can and should make his or her own determination regarding the risk versus potential reward of purchasing an RV extended warranty. If you do it for peace of mind you'll probably be happy. If you do it expecting to win you'll probably be disappointed.

[Dr. Mike]

My sad attempt at humor:
(Note that it’s PEACE of mind, not PIECE of mind which I see as often as not on various forums.)
I have performed over 4000 autopsies......I can give you a piece of mind!

I got the message about extended warranties, but what about something like Coach-Net that may cost a few hundred, but may save you thousands?

Be safe

Dr. Mike