Extended warranty sham/scam

[Bat Dude]

When we purchased our new HR Invicta we were cajoled into adding the "Extended warranty" for a ton of $.
REV RV has been EXCELLENT on all warranty issues for the first year. No questions, simply replaced everything that had an issue.


A few weeks ago our INSIGNIA microwave/convection oven failed. I called the tech support at Insignia and was told if no power and it suddenly began tripping the 30 amp breaker when the door was opened or closed, it was toast and needed to be replaced.


I called the extended warranty outfit to see what we should do. So far we have simply covered all other issues ourselves.

I was told first it MUST be evaluated by a licensed/bonded RV repair facility.


I looked on line and initially Best Buy had the same model listed for $295.
I mentioned that to the warranty customer support person and I was told customer self service would not be covered under the warranty and all replacements must be through an RV repair place.


So I decided OK not a big deal < $300 and ignore the AHEM "Warranty" and replace it on my own.


NO Bat Dude, you have been deceived.


Turns out the unit (Insignia is a Best Buy house brand) is no longer available full stop. So I checked REV RV parts on-line and whoopee they had 6 units in stock. Opps these were $860 or so.


So I found a place that would evaluate the unit while we were traveling with a short 1 hour stop just north of Tucson. Tech walked into the coach and " Yep, no power and unit does not power on", and checked the outlet - full power. "Your unit needs replacing." DUH knew that already but OK lets move forward. Then told replacement would be ~$1,100. I commented I had found an exact replacement from REV RV for around $860... well we need to add OUR mark up to the cost of parts I was told. So it is $1,100 or nothing.

Oh well, when we sell the rig in a few years it will be good that everything is functional. And the Extended warranty?
Of course $100 deductible but... always a but- the MAX they will pay for the replacement is $358 as that was the LAST listed price from Best Buy a few years ago. No amount of discussion with the warranty outfit on the fact I was told directly from Best Buy/Insignia that the unit is NO LONGER available.

So more $$$$ to keep the coach fully operational.
Considered looking for ANY replacement unit , but of course vents etc would not match what were being used with the OEM unit.

So Extended warranty read Sham/scam....that we paid a couple of $K for is nearly useless.


Chalk it up as a joint Xmas gift to ourselves?
Cheers all,
Bat Dude

[NLOVNIT]

It's a racket, I'll agree. And a very profitable one for the selling entity. There's always the "fine print" on extended service policies of what is/is not covered, what one has to do to get something covered by the policy & how much they'll pay. Most always there's a cap, especially on replacements. I know, BTDT, had a thing or 2 not paid for as I had thought because of some clause in the policy. Unfortunately it's up to us to read them, in their entirety, even though it makes our eyes cross to do so.

While not under a service policy, I went through a similar situation for the Aqua-Hot annual maintenance on my Phaeton. I could get the kit direct from AH for around $240 & ship it to them to use. The dealer wanted to charge me over $400 (at least) for the same kit from their inventory. I tried to explain to them I was getting the EXACT SAME kit from AH they were going to use, but their stance was unless I let them use their kit, with their markup on it, they wouldn't warranty their work. It was their price or nothing. That's just how these places operate.

[fcbbob15]

Most likely one of the door switches is bad. Microwaves have a series of interlocking door switches to keep the unit from cooking with the door open. Generally speaking you can get a switch pak and replace it. Mine was $124 for my Maytag. In my case it was worth it because a new one was $800. I have worked on food service equipment for years so had the knowledge to repair. May be worth removing and taking to an appliance service center.

[Old-Biscuit]

Ever wonder how an 'Extended Warranty' (service contract) company stays in business.

Revenue IN vs Claims denied

[BayRunner]

I don’t think that these extended warranties are a “scam”, however, it is a business and in order to stay in business, a profit needs to be made. This is why I am a proponent of self warranty as I contribute a fixed amount each month to my maintenance account. When I need to make a repair, simply pay cash and everyone is happy.

In your particular case, their payout limit is flawed. They insisted you get the repair performed by a licensed RV repair facility but quote a last listed price by Best Buy. In this scenario, your not buying from Best Buy but rather the RV repair facility. So their line of thought does not hold water.

[RRR]

I'll toss this out there on appliance repair as they have saved my rear several times. https://www.applianceblog.com/mainforums/

They have helped me through repair of the convection/microwave, $30 part a refrigerator for a $50 part, a dishwasher for a $25 part, and the washer for $50 part. Good savings for what the cost of each replacement would have been.

[NXR]

My canned thoughts on "extended warranties" if the RV is new:

- Note that THERE IS NO SUCH THING AS AN EXTENDED WARRANTY unless it is offered by the original manufacturer. The companies selling them like to call it a "warranty" because that makes people feel good as opposed to reality, which is "service contract" and what the paperwork will say.

- First, consider not buying one until your real warranty is about to end. The factory warranty is ALWAYS primary so if you buy a 5-year extended service contract at the RV purchase you effectively wasted the first year of coverage, making it 20% more expensive than you thought.

Just ask your finance person when the extended service contact WILL pay for something in the first year that the manufacturer's warranty will NOT pay for and watch them squirm.

- Second, go through the pile of product manuals you will receive. Several items have 2-year warranties, such as our Dometic (Atwood) air conditioners and our Norcold fridge. With the Ford V10 chassis we got 3 years/36,000 miles of warranty but I do not know what the V8 warranty is. In addition, Ford provided 5 years of a Roadside Assistance plan. Again, the manufacturer's warranty is primary so a 5-year extended service contract bought at purchase could really only be two or three years for some things.

- Ask the finance person for the list of what equipment is covered, and for how long, by the equipment manufacturer after one year. They likely won't know but they should. And you should build that list after your purchase.

- Third, if you buy one, buy an "exclusionary" extended service contract. Those list what is NOT covered instead of what is covered. But some major things are not covered, such as structural issues like broken welds, cracked frames, etc.

I looked long and hard at an extended service contract three years ago from Wholesale Warranties for a new motorhome, their best plan. It was under $5,500 if paid up front for 7 years of coverage and could be transferred to a new owner or cancellable for a prorated amount. I was sorely tempted.

I did not buy it because I am fairly handy but someone who always has to "call the guy" could make a good case for buying it.

- I did buy the Tire and Wheel Road Hazard plan from Wholesale Warranties for the motorhome, though. It was about $525 for 7 years, about the price of one tire. I recently started a claim due to a screw in the tread and their carrier confirmed they would pay up to the retail price for a new tire and associated costs if the tire was junk. Fortunately the screw did not actually penetrate the tire so all it cost me was the $38 the truck shop charged me to dismount the tire, inspect it, check it for leaks, and remount the tire. If they would have plugged a hole the policy would have paid me $30.

- When would I consider an "extended "warranty" on a new RV? When it's not really new but lightly used. New, infrequently used RV's can have some significant manufacturing defects that never were repaired because the RV was not used long enough for them to become apparent.

Some RV manufacturers and some of their vendors ONLY provide warranty services to the original purchaser. If you bought an RV that the original owners had for one week and never used, YOU HAVE NO FACTORY WARRANTY AT ALL.

[Mudfrog]

I'm not exactly sure how a person is able to determine that a microwave oven is shot by simply opening and closing the door.

It would have been nice if the OP could have gotten someone to open the microwave up and take a quick look inside. Being that it trips with the door opening makes it sound like it may be something simple. For instance, a door switch wire shorting to ground? It could be an easy, maybe even cost free fix.

I also think it's best to try to save/put money aside to cover the incidentals and repairs we know will be coming sooner or later.

[Country Road]

I do believe that most people, including myself years ago, buy that product for piece of mind. I realize that sometimes they do help with repairs because otherwise, word would get out that the policies truly are not worth the investment.

My thought is that if you really want the warranty or service contract to pay off, you should cut your losses and cash it in for a refund of the prorated amount of time left unused.

[baraff]

I have replaced door switches on both our motorhome and S&B microwave ovens. Bought the switches off eBay, around $4 a piece. Manufacturers use cheap Chinese-made micro-switches and they fail often.
I often wonder how many perfectly good microwave ovens are rusting away in landfills for want of a $4 part.

[2cyber71]

Holy cow, terrible

[glwinger]

Something doesn't make sense. I used to repair microwaves while working for large national retailer. The microwave has it's own internal fuse which will blow before taking out a 30 amp breaker. A bad door switch can and will cause the fuse to blow. There are two or three switches in the door which work in harmony. It's a safety system. I doubt if any RV retailer has a technician capable of troubleshooting a microwave.

The microwave in question is a standard over the range microwave. Nothing special. Insignia does not make M/W specifically for rv's.

Insignia is a lower end $200 unit, Best Buys loss leader brand.

PS: I have never bought a third party extended warranty. Read the fine print!




Any over the range microwave should work. Save all the headaches and just buy a name brand replacement.

[Bigceasar]

Originally Posted by NLOVNIT

It's a racket, I'll agree. And a very profitable one for the selling entity. There's always the "fine print" on extended service policies of what is/is not covered, what one has to do to get something covered by the policy & how much they'll pay. Most always there's a cap, especially on replacements. I know, BTDT, had a thing or 2 not paid for as I had thought because of some clause in the policy. Unfortunately it's up to us to read them, in their entirety, even though it makes our eyes cross to do so.

While not under a service policy, I went through a similar situation for the Aqua-Hot annual maintenance on my Phaeton. I could get the kit direct from AH for around $240 & ship it to them to use. The dealer wanted to charge me over $400 (at least) for the same kit from their inventory. I tried to explain to them I was getting the EXACT SAME kit from AH they were going to use, but their stance was unless I let them use their kit, with their markup on it, they wouldn't warranty their work. It was their price or nothing. That's just how these places operate.

I wouldn’t even cross my mind that a service provider would install parts you brought them in lieu on buying those parts from them. Would you also expect a restaurant to prepare a steak dinner at a discount because you brought in the steak?

[bigb56]

If I am not mistaken the insurance company is supposed to make you whole, less your deductible. This being the case, tell them to locate you a new unit because you can't find one for the amount they came up with.