What are everyone's thoughts on "Service Protection" plans?

[philippo]

I would be really interested in what your honest thoughts are on the value of the extended protection plans that are offered at the time of purchase of a new RV?

My personal take on "extended warranties" has always been to politely decline, but that's all been the type of "service plans" that are offered on...say, a tool from home depot or even a fairly expensive appliance for the home. I think they're all pretty statistically calculated to be nothing but another bit of cash flow coming out of your pocket to whoever is running that show...

BUT...an RV just might be a different story, way more complex with quite a few more ways to have things go wrong.
And of course the basic tenant of insurance holds true; if it turns out that you DO need it the cost is very well worth it -- there's a lot of big ticket items in an RV.
But that money would also pay for quite a few campgrounds or tanks of fuel.

So...your thoughts, everyone?
philippo

[NLOVNIT]

I feel a lot of it depends on how handy you are at fixing stuff. If you're handy & can tackle the things that break/fail to work...etc, then you're better off putting the payments you'd make to that contract into a bank account & drawing on it when needed. If you don't know a nut from a bolt or get that deer in the headlights look when faced with tracing down a dead circuit or having to fix a jack that won't go down (or up), then the service contract is worth the peace of mind.

When we bought our prior (Bounder) coach new, we didn't know what we didn't know & we did get the extended service contract from the dealer. I did negotiate it down a couple thousand for the term from what they originally offered (contracts are ALWAYS negotiable) & over the 7 years it was in effect, we did just about break even on using it over the time it was in effect.

If getting one, I would shop around. Don't just take what the dealer offers. It's a HUGE profit for them. There are other independent companies out there from which to choose.

Also, carefully scrutinize what is/is not covered. In my experience, exclusionary policies are easier to understand than inclusionary ones. It seems there's less stuff listed as NOT covered on the exclusionary policies than stuff IS covered on inclusionary.

Just my 2-cents worth.

Lori-

[no3putt]

If your looking buying new, most RV manufactures come with at least 1 year, also many things like AC, stove, hot water heater, furnace come with seperate manufactures warranty which might be 2 or 3 years. Skip

[jacwjames]

I was never a proponent of extended warranties. In grad school the statistics professor had a lecture on them and how they were not worth it.

That being said, most new equipment/appliances is dominated by electronics that seem to fail for no apparent reason.

I just built a new sticks and bricks house and purchased all new appliances for 2 kitchens and laundry room. I opted to take the extended warranty on all of them.

I've already had a warranty claim on a Frigidaire refrigerator and am waiting for service call on a Samsung washer. both still within the 1 year warranty.



Depending on cost I might consider buying an extended warranty on a new coach. Considering how complicated all the systems have become and how difficult they are to self diagnose and fix it may be cheap insurance.

[Ray,IN]

This is just My opinion; for a trailer I doubt I would purchase one, for a very complex MH I did buy an ESC. My reasoning was, complex machine and living quarters, used MH that had sat in the previous owners barn for 6 years after he became too ill to use it, low mileage @24,xxx for a-then 13 yr old MH.
The Camping World ESC more than paid for itself, including deductibles and travel expenses, during the 3 yr contract period. All claims submitted were for the chassis part, only one for the coach part- when the SCS-Frigette remote door locking system failed.
Some folks have the money to "self-insure" for a major expense, I don't.

[jarata]

do a search hundreds of posts on it

[FatChance]

Lori has it right. If you are handy and resourceful, it will probably be a waste of money and a source of profit for the service contract company.

[TonyDi]

When I bought my MH years ago I decided not to buy an extended warranty, instead I Place the money I would have paid in premiums and put it in an account to be used for repairs. I am very much ahead of the game. Granted a huge repair like an engine, tranny etc. would be a game changer. However that's part of the risk I'm willing to assume.

If I never use the money, then I'm sure I'll find something fun to spend it on.

[Lv2Roam2]

We've always declined service policies for appliances, vehicles, etc. The accumulated savings easily exceed the costs of repairs not covered by warranty or manufacturer/dealer good will, and that includes 5 years in our coach.

In our visits to RV dealers and manufacturer service sites we've noticed that some will no longer deal with some/all service plans. When they do, there can be a delay of a day to 3 - 4 while the repair facility communicates with the insurer seeking approval for repairs.

Among our FTing friends about 40% report benefiting (costs of repairs > cost of policy) and the remaining didn't benefit.

[philippo]

Thanks for all your replies!
Let me throw out some specifics that will add some more detail to my post.

1) The RV we purchased is a 2020 Northern Lite EXCD camper. (We previously owned a secondhand 2005 Northern Lite 8 11 QE that we traveled in for years so I'm fairly familiar with the workings of this beast).
Also, I'm a custom cabinetmaker by trade (with earlier boatbuilding experience) so the structural aspect of it all has a ring of familiarity.

2) I've negotiated a bit and the service contract cost would be $2600+tax and the term is for 7 years.

3) Covered are the appliances (reefer/water heater/range and oven), heating system/plumbing system (fresh/grey/black), LP system, awnings, electric jacks, electronics (TV/DVD/stereo, antenna), propane & CO2 detectors, fans, door handles, locks, and hinges.
Not sure yet about the solar system (factory installed, 200 watts now standard!).
It also has what looks like a fairly generous set of reimbursemants for travel expenses, towing (hopefully not needed for a Camper ), food spoillage, and the like.
philippo

[NLOVNIT]

If you're looking for us to tell you to or not to buy, that's not going to happen. This is a decision only you can make based on your comfort level with your RV.

Lori-

[ThePowells]

Here is a link to over 4100 previous discussions on your question.


https://www.google.com/search?q=%22e...earch=irv2.com


As Lori said, it is entirely fact dependent based on your circumstances.


We bought our Class C new. ESP was never a consideration. Chassis still under FoMoCo warranty, so right now the A/C is my biggest concern.
Our next / last coach will be an Entegra Cornerstone / Anthem. An ESP will be a serious consideration for many reasons. Among mine will the the vast amount of electronics, that the first maybe 2 years no place to do more than normal services, and I am not equipped tool wise to handle anything semi serious on chassis / drivetrain. Lots of variables to consider, but the most important going forward is to totally understand the plan, what is included and EXCLUDED, gasket and seals rider, plus any maintenance required and documented by the plan.

[Itchytoe]

Originally Posted by philippo

So...your thoughts, everyone?
philippo

They calculate the average cost of a repair in the time frame they are insuring you for against repairs, then add a few percent so that they make money. You are essentially pre-paying for a repair that may or may not happen.
That's a bad deal in my book.

[MSHappyCampers]

Originally Posted by NLOVNIT

I feel a lot of it depends on how handy you are at fixing stuff. If you're handy & can tackle the things that break/fail to work...etc, then you're better off putting the payments you'd make to that contract into a bank account & drawing on it when needed. If you don't know a nut from a bolt or get that deer in the headlights look when faced with tracing down a dead circuit or having to fix a jack that won't go down (or up), then the service contract is worth the peace of mind.

When we bought our prior (Bounder) coach new, we didn't know what we didn't know & we did get the extended service contract from the dealer. I did negotiate it down a couple thousand for the term from what they originally offered (contracts are ALWAYS negotiable) & over the 7 years it was in effect, we did just about break even on using it over the time it was in effect.

If getting one, I would shop around. Don't just take what the dealer offers. It's a HUGE profit for them. There are other independent companies out there from which to choose.

Also, carefully scrutinize what is/is not covered. In my experience, exclusionary policies are easier to understand than inclusionary ones. It seems there's less stuff listed as NOT covered on the exclusionary policies than stuff IS covered on inclusionary.

Just my 2-cents worth.

Lori-

X2! Totally agree!