Ferndale
Ferndale,WA
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Joined: 01/06/2005
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catkins wrote:Ok - my head understands that these are a bad decision finacially BUT my head and sleep patterns tell me I am happier insuring against a major appliance or motortrain failure. I have at year two, already had three claims approaching 60% of what the policy cost me. Four more years to go. Now, I will actually cheer to NOT have problems but if I do, my major costs are covered. This is my secong extended warranty purchase (yes, insurance plan.) Sometimes you just need to follow your gut. Good luck!
Who have your extended warranties been with?
Brian
U.S. Navy Retired
1962-1983
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JaBob
Roswell, Georgia
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Joined: 06/10/2004
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Interesting, 3 people responded who have an extended plan and all were happy. The rest didn't have the plan and by their comments never wood.
I bought a preowned coach that had a transferable 7 year plan. One of my AC units went out 12 days before it expired. My cost $50. Was it economically justified, probably not, but was a nice feeling in this day and age.
Peace of mind, yes. Stop to think about it, how much of RVing is about economics. It's about pleasure. If it floats your boat, do it.
An after thought. Yes an extended warranty is an insurance plan. Just like health, auto, home, etc. If we put a pencil to those plans would they be justified. After all, insurance companies do make money.
Bob
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mowermech
Billings, MT
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Joined: 06/28/2003
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JaBob wrote:Interesting, 3 people responded who have an extended plan and all were happy. The rest didn't have the plan and by their comments never wood.
I bought a preowned coach that had a transferable 7 year plan. One of my AC units went out 12 days before it expired. My cost $50. Was it economically justified, probably not, but was a nice feeling in this day and age.
Peace of mind, yes. Stop to think about it, how much of RVing is about economics. It's about pleasure. If it floats your boat, do it.
An after thought. Yes an extended warranty is an insurance plan. Just like health, auto, home, etc. If we put a pencil to those plans would they be justified. After all, insurance companies do make money.
Bob
Yessir, I am one of those who WOULD never buy such a plan.
Again.
I had one on a Suncrest Class A. After two years, and after reading the plan a little closer, I canceled it and got my money back. Prorated, of course.
My son had one on a fifth wheel that covered everything, even tires. Except, it turned out the tire "warranty" was ONLY for road hazards. When a tire disintegrated, it wasn't covered, so he bought four new tires, and canceled that part of the service plan. A slide gearbox went out, and with the help of an understanding service man, the net cost was nothing. A $750 return on a plan that cost about 2 grand!
Yeah, I been there. I won't go back.
CM1, USN (RET)
'94 Dodge 3500 4X2 CTD, 5 speed, 4.10 LS diff., Jacobs Rambrake, 274,000 Miles
'99 Monaco McKenzie 32' triple slide
'95 Tioga 29H Ford-based Class C
Daily driver: '08 Subaru Outback
Towed: '06 Jeep Rubicon Unlimited/Load Trail 16' flatbed
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jocobe
Maryland
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If everyone that purchased the extended warranty had it pay for itself, in covered repairs, then the insurance companies would no longer sell them. They're betting that the product they are insuring will not fail. You're betting it will fail. They probably know the product's repair rate better then you do. I'll side with them and pocket the money.
Come to think of it, why would someone buy a product that they think will fail?
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popeye59
Zion ,IL
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valhalla360 wrote:Let's see $175/yr by 8 years is an up front cost of $1400. Early fixes would be covered under warranty so lets say the average payout is 6 years down the road. In the mean time they have your money. At say 6% interest on average for 6 years, that is just shy of $2000. Put the money in a savings account and you don't have to worry about most unexpected fixes. And if you are like the average person, you have money left over when the insurance period is over.
Of course if you need the money in year 3, you might not hve enough in savings to cover your repair unless you put all the money in the savings account from day 1. I'm not gonna do the math but the way you figure interest would be based on the buyer giving all the money up front as well.
That being said... I didn't buy a protection plan for my TT and have never bought one for any major purchase yet.
Frank and Jean
Retired Navy (EM1)
'09 Rockwood Roo 233s
'03 1500 Silverado LS
I didn't say it was your fault, I said I was going to blame you.
The things that come to those that wait will be the scraggly crappy junk left by those that got there first.
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jocobe
Maryland
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I was in Dicks tonight buying my 14 year old son new tennis shoes. Upon checking out, the cashier wanted to know if I wanted to purchase an extended warranty on the shoes against wear and tear. I asked her what are the chances my son would out grow them before they're worn out. I gotta dumb look from the cashier, like it suddenly dawned on her. Amazing....
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valhalla360
No paticular place.
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Joined: 08/19/2009
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popeye59 wrote:valhalla360 wrote:Let's see $175/yr by 8 years is an up front cost of $1400. Early fixes would be covered under warranty so lets say the average payout is 6 years down the road. In the mean time they have your money. At say 6% interest on average for 6 years, that is just shy of $2000. Put the money in a savings account and you don't have to worry about most unexpected fixes. And if you are like the average person, you have money left over when the insurance period is over.
Of course if you need the money in year 3, you might not hve enough in savings to cover your repair unless you put all the money in the savings account from day 1. I'm not gonna do the math but the way you figure interest would be based on the buyer giving all the money up front as well.
That being said... I didn't buy a protection plan for my TT and have never bought one for any major purchase yet.
To get a true apples to apples comparison, you need to account for the time value of money (interest), so I had to make an assumption about when the money would be used typicaly. You may have a breakdown that's covered in a year or you may never have one, but typically you are out more than the up front cost. Where I did mess up on the math is not incorporating inflation. Either way I would rather have the money in my bank account until it's needed.
I would put the money into savings and let it grow. Especially if you shop around and look at options, $1400 should take care of the vast majority of repairs that would likely be covered by an extended warranty.
I do assume if we are talking warranties, we are talking about people who are buying new (or darn close to new). I would expect if you can afford a rig that runs from $40K-$300K (includes tow vehicle if needed), you can afford to set aside $2-3K to cover things breaking.
Someone mentioned life, home, health and auto insurance for comparison. The reason to buy insurance is to cover rare events that would be financially devestating. If your house burns down, you could be out hundreds of thousands of dollars with no place to live while you sort it out. Covering that risk makes sense. If $2-3K would be financially devestating should you have put $40K+ into what is essentially a toy?
Another thought for the discussion: Should we discount the value of replacement items under warranty? Under warranty people will push for the best most expensive option because they have nothing to lose y doing so.
- If the AC goes out and I have a warranty, I'm going to argue for getting brand new unit and will encourage my repair shop to justify it (above board and legally of course). Say $1200 for a new unit installed.
- If the AC goes out and I have to pay for it. I'm going to look at whats wrong and try for a less expensive fix. Maybe for $200 they can replace a faulty compressor motor and it's good as new (No I don't know if that is a reasonable cost).
Tammy Mike & the Bilge Rat (AKA: Diego)
Ford F250 7.2L
1997 Sunnybrook 27' 5er
1995 Gemini Sail Catamaran 34'
Full Time spliting time between boat and 5er
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downtheroad
Puget Sound
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Joined: 02/18/2003
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My take....if you can't afford to repair the stuff that might break on an RV - you really can't afford to own an RV.
"If we couldn't laugh we would all go insane"
GMC Duramax/Allison (LBZ)
Komfort 277TS .... Our Rig Picture
Reese Dual Cam HP
Lots of other stuff nobody cares about
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Blue_ToyHauler
Anaheim,Ca
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Well I disagree with everyone on this post.. I bought an extended warranty on my toyhauler. Right as it went into affect, my toyhaulers invertor went out and FRIED everything in the toyhauler they replaced everything in my toyhauler because of the extened warranty. I basiclly got a new toyhauler. So I think its worth it, you NEVER know what will go wrong and how much each item will cost you, so save $ and buy it!
2009 Chevy Silverado Crew Cab 3500 Diesel 4x4 long bed (blue)
2009 Forest River Shockwave 26ft fbspl
* A QUAD FAMILY *
2008 Suzuki LTZ-400 Mine*k*
2008 Yamaha Raptor 350 Grandma *k mom*
2008 Raptor 50 cc Sons
Blue Toyhaulers Rig
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jocobe
Maryland
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Blue_ToyHauler wrote:Well I disagree with everyone on this post.. I bought an extended warranty on my toyhauler. Right as it went into affect, my toyhaulers invertor went out and FRIED everything in the toyhauler they replaced everything in my toyhauler because of the extened warranty. I basiclly got a new toyhauler. So I think its worth it, you NEVER know what will go wrong and how much each item will cost you, so save $ and buy it!
The insurance policy worked well for you, but if everyone had the same story the policies would not be offered for sale. So the majority of people do not recoup their cost of the policy, that's how insurance works.
Not everyone makes out when they go to Las Vegas either 
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