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> Extended Warranties??
J59T
post Nov 29 2010, 10:51 AM
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We're buying another rig and I've been hearing alot of bad press from extended warranties. Anyone that can be recommended? Avoided? Thanks!
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RFCN2
post Nov 29 2010, 11:01 PM
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We have a policy from Xtra Ride and IMHO they are a very good provider. We bought it when we got our new to us Country Coach a year ago and I am very glad we did. They have been very easy to work with and have done everything they were supposed to. No hassles. Have they paid for everything, no, but they have been fair.


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jan-n-john
post Nov 29 2010, 11:10 PM
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QUOTE(J59T @ Nov 29 2010, 11:51 AM) *

We're buying another rig and I've been hearing alot of bad press from extended warranties. Anyone that can be recommended? Avoided? Thanks!

I have no specific knowledge about any specific extended warranties. I'd just like to say (rant if you will) that IMO these things are always a bad buy and should be avoided, whether for RV's, cars, TV's, or anything else. Period.

Think about it. The company (ies) that sell them have to make a profit. Therefore, they have to take in more money from selling them than they pay out in claims. So the odds are automatically stacked against you from the getgo. In addition, in most cases the outfit that sells the policy to you, eg an RV dealer, gets a commission up front from the actual policy issuer. For some things, these commissions run as high as 50%, so the revenue that the insurer ultimately gets, that must exceed the claims paid, is way less than the face value. So your expected payback from buying the policy is low, certainly less than 75% and more likely 40% or even less.

Unless you simply don't have the means to foot a large (and very unlikely) repair bill, your best strategy is to keep the money and just pay any repair bills that happen. You can set aside a fund for the purpose from the money you saved from not buying the warranty. The vast likelihood is that you will spend less than you would have by buying the warranty.
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RFCN2
post Dec 2 2010, 11:59 PM
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Jan a John - your argument could be used against all forms of insurance, life, health, and so on. If you are rich then go ahead and self insure on all those things. But if not rich sometimes insurance makes life less stressful. I have extended warranty's on all four of our motor vehicles. Over the last 10 years I have been paid more than I have paid.

My motor home policy has been great. Extra ride has paid for a bunch of the first year issues on our used motor home and I still have almost two years of protection.


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jan-n-john
post Dec 4 2010, 09:19 PM
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QUOTE(RFCN2 @ Dec 3 2010, 12:59 AM) *

Jan a John - your argument could be used against all forms of insurance, life, health, and so on. If you are rich then go ahead and self insure on all those things. But if not rich sometimes insurance makes life less stressful. I have extended warranty's on all four of our motor vehicles. Over the last 10 years I have been paid more than I have paid.

My motor home policy has been great. Extra ride has paid for a bunch of the first year issues on our used motor home and I still have almost two years of protection.

Strongly disagree. Yes, everybody needs insurance to cover risks where a loss could be so great relative to his assets that it could ruin him or at least be very destructive financially. That's why most people need for example medical and car (especially liability) insurance. I never suggested otherwise. But any risk that can be covered out-of-pocket without doing serious financial damage is not in that category, and for those risks it is cheaper in the long run to self-insure. Extended warranties are in that category.

The rule-of-thumb is fairly simple. We all have risks in our lives. We can accept those risks or pay somebody else to take them in our place (buy insurance). People who do that (insurance companies) know what they are doing and don't do it to lose money. They charge more, lots more, than they are likely to pay out. So it is always cheaper on an expected value basis to self-insure, and the only rational reason to pay somebody else to take our risk for us is if the potential loss would be a disaster for us, which in turn depends on one's own asset base.

If you have collected more than you have paid, good for you, but others who bought those same policies have collected less, much less on average, or the companies that sell the policies would be out of business, which they're not. Those other buyers and you played the game, and they lost while you won. But you can't know going in that you will be the lucky one, and consequently getting in the game is still a bad decision. It's like somebody who wins in Las Vegas. Good for him, but that doesn't make it a good idea to walk into a casino and lay your money on the table. Just ask your mother. (Full disclosure--I'm not a gambler, but I do own casino stocks, which are doing very well--that's the way to make money from gambling).

As to extended warranties on rv's (and cars and TV's and so on), the financial consequences of having to pay a big repair bill, in the unlikely event it happens, are not great for most people, who ought to be able to stand the (relatively low chance) of that level of payout. Consequently, unless you are living on the razor's edge financially, from a rational standpoint buying an extended warranty is a bad decision. It is an expensive way to achieve "peace of mind." It's an illusion of a free lunch, and in the end the probability is you're giving your hard-earned money away to insurance companies.

Maybe I'll look into buying stock in some of these extended warranty companies and get some of that action for myself. After all, Warren Buffet made a good chunk of his billions on GEICO. Why not me too!
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RFCN2
post Dec 4 2010, 10:39 PM
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With all due respect Jan A John what you say is a general thesis on the pluses and minuses of extended warranty for motorhomes and other vehicles. My specific experience of buying extended warranties for all of my vehicles over the last 10 years is that I am ahead financially, and I have slept better at night knowing I would be covered.

And once again I have had very good experience with Etra Ride motorhome warranty. They actually try to help you when you call. They do not disallow work for petty reasons. And they are fine with any licensed RV repair shop.

And that is my final comment on this subject. Please no more "rants" as you described your first post.

Whoops type just posted Etra Ride and should have been Extra Ride.


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jan-n-john
post Dec 5 2010, 08:46 AM
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QUOTE(RFCN2 @ Dec 4 2010, 11:39 PM) *

With all due respect Jan A John what you say is a general thesis on the pluses and minuses of extended warranty for motorhomes and other vehicles. My specific experience of buying extended warranties for all of my vehicles over the last 10 years is that I am ahead financially, and I have slept better at night knowing I would be covered.

And once again I have had very good experience with Etra Ride motorhome warranty. They actually try to help you when you call. They do not disallow work for petty reasons. And they are fine with any licensed RV repair shop.

And that is my final comment on this subject. Please no more "rants" as you described your first post.

Whoops type just posted Etra Ride and should have been Extra Ride.

And here is my final comment on this subject.

As I said before, I'm glad you find yourself ahead on the deal. That's great.

But you appear to be suggesting I should not post on this subject any more--perhaps you feel my thoughts are valueless, and therefore I should go away. In my view that's inappropriate. The purpose of these boards is to share information and analysis that will be of use to others, particularly in making various decisions. You have your experience to offer, and are in effect telling people they should buy these products. I have said that that's not good advice, and in fact in most cases purchase of these expensive and overpriced products is a losing proposition. Anyone is free to take your advice, or mine, and do whatever they feel is best for them. It's their money. But closing off discussion on these boards is contrary to their purpose. And calling for that is not in the spirit of communication and discourse that should be fostered here.
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wpr
post Dec 5 2010, 10:21 AM
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I don't know about other jurisdictions, but here we have something called "legal warranties", that is when you buy something you can expect it to work for a reasonable length of time. Regardless of the time specified in the manufacturer's warranty, you can very easily get anything repaired or replaced if you go to small claims court for anything under $7000 or regular court for anything above that amount. For example, just the threat of legal action over a TV or a motorhome transmission that bonked out just after the manufacturer's warranty ended will get things moving quickly in your favor, as the merchants know they have no chance to win and it will be quite a hassle for them to go to court. Generally the legal warranties are at least as long as the extended warranties you can buy, but they will be individually assessed by the judge.
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RV Camper
post Dec 11 2010, 10:11 PM
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Let me suggest that you need to understand extended warranties, before you make the decision about buying one. I suggest that you take the time to read The article in this link, from Escapees Magazine, Jan/Feb, 2010.


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Texasrvers
post Dec 11 2010, 10:52 PM
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Good article. Thanks, Kirk.
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nedmtnman
post Dec 12 2010, 09:53 AM
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Before buying an extended warranty I would suggest looking at the warranties for what is being covered. We bought a 5 year extended warranty when we bought our 5er. Later found out that most of the appliances and so on we wanted covered were covered in the manufacturers warranty for two years therefore we only bought a three year extended warranty. Some things were covered by the manufacturer for 5 years.


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weighit
post Dec 12 2010, 11:33 PM
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I always have read all the fine print and what is and what is not covered. Other than one time bought a extended coverage on a lap top, have passed on all the other policy's. If you follow any of the financial guru's they all suggest not purchasing one and putting the amount of money needed to buy into a separate account. Draw off of that account when major needed items arise. Chances are you will be farther ahead.
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DavyD
post Dec 15 2010, 11:12 AM
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I bought a 7 year/75,000 mile service contract (extended warranty) when I bought my new Coachmen Class "C" motorhome two years ago. It covers most everything except normal maintenance wear parts and a rather small list of exclusions. The company is Interstate - Star RV. Check them out on the web at www.inds.com. I had several references given to me by the Coachmen dealer and they were all positive about their Interstate experiences.

I have had to use it once during this past year for a water heater problem and they were very easy to deal with.

Although everyone has a different opinion about extended warranties, I will usually get one on a new car purchase and in this case a motorhome. It not only gives a person peace of mind while traveling but is also a good feature to have when trying to sell a used motohome.
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Pat L.
post Feb 9 2011, 02:22 AM
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QUOTE(DavyD @ Dec 15 2010, 12:12 PM) *

I bought a 7 year/75,000 mile service contract (extended warranty) when I bought my new Coachmen Class "C" motorhome two years ago. It covers most everything except normal maintenance wear parts and a rather small list of exclusions. The company is Interstate - Star RV. Check them out on the web at www.inds.com. I had several references given to me by the Coachmen dealer and they were all positive about their Interstate experiences.

I have had to use it once during this past year for a water heater problem and they were very easy to deal with.

Although everyone has a different opinion about extended warranties, I will usually get one on a new car purchase and in this case a motorhome. It not only gives a person peace of mind while traveling but is also a good feature to have when trying to sell a used motohome.



Has anyone ever had Good Sam's Extended Service Plan (ESP)? I am thinking about adding a plan for my '05 F350 KR Power Stroke DRW. Any input would be greatly appreciated.
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RV Camper
post Feb 27 2011, 08:37 PM
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Let me suggest that in your consideration of extended warranties, you would be well service to read this article from Escapees Magazine on the subject. It will explain how they work, what is good and bad and if you wish, how to choose one.


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