Your Recreational Vehicle is a major investment. Sometimes nearly as much as your home, or even more! Extended RV Service Contracts, or "Warranties" as they are commonly referred to, are an excellent way to protect your investment. There are however, many things you should know about warranties in general, as well as the various companies that provide and administer them.
Most all experienced RV'ers will tell you that a good warranty is like a gun... It is better to have it and not need it, that to need it and not have it. Hopefully you aren't offended by the analogy, but it makes the point. You'll have to bite the bullet (pardon the pun) and write the check for the cost of the warranty, but you'll only have to do this once.
Deductibles normally range from zero to $200.00 per occurrence, however that's a far cry from the typical $1,500 to $2,800 replacement cost of a refrigerator. (some 4-door units with ice maker can cost over $4,500.00!) Engine and drive line repairs can be substantially more. Even a simple air conditioner, water heater or furnace replacement can exceed $1,500.00.
When considering adding an extended service policy, the key is to find the best coverage possible for the least amount of money. Just as you've hopefully shopped for the best possible price on your RV, you should shop around and compare coverage and costs on warranties as well.
Do not be pressured by ANY RV DEALER to add the coverage when you are signing the purchase documents on your new RV. Most RV dealers commonly mark up their warranties 70% to 200%. While you are shopping for a protection plan, remember that in most cases, you must initiate your extended warranty coverage BEFORE your manufacturers warranty runs out. Some companies will cover a vehicle which you have purchased used, or after the manufacturer's coverage has expired. Most of the time they will require an independent RV inspection and the completion of a checklist on the condition of all main components.
One of the companies that will allow you to purchase a comprehensive extended service contract AFTER your factory warranty has expired is Oldfaithfulwarranty.com, and, of course we also offer coverage on units still under the manufacturer's warranty. There is a free quote form below on the website.
Click Here For A Free Quote
Some Points to Consider
You need to be aware of how claims are paid. Many companies require you to pay the repair bill, and then send in a copy of the repair order to the warranty company. Some companies will pay the repair facility directly, but only if the repair facility will agree to file the claim. More and more dealerships and repair facilities are unwilling to wait for the payment to arrive. It's much easier for them to ask you to pay for the repairs, and request that you file your claim directly with your coverage provider.
Many RV warranties have additional benefits such as towing reimbursement, rental car allowances, towing and road service, and lost key and lock-out service. Some plans will even pay for your meals and lodging while your RV is being repaired.
Your warranty coverage should be transferable if you sell your RV. It should have a prorated refund policy if you decide to terminate the coverage at any time during the warranty period. It should also be renewable. This means that you can keep your RV covered for an indefinite amount of time.
You should also be sure that you can have covered repairs done at any authorized repair facility. The coverage should be good anywhere in the United States or Canada. Rarely, if ever will a warranty cover you in Mexico, so keep that in mind if you decide to take a vacation south of the border.
Additional Options and Surcharges
These additional coverages obviously add further expense to the warranty. You should definitely consider adding many of these applicable coverages to your protection plan. The additional expense of adding these options can offset much larger repair expenses during the term of your coverage. Here is a list of common additional coverages. You would want to choose the options that match the equipment on your RV.
Slide-Out Rooms: This is a biggie. If your RV is equipped with slide-outs, be sure to add this option to your policy. Even though slide-out rooms have become more and more reliable, they still require adjustment, or repair from time to time. These adjustments and repairs can be very costly. Some companies charge by the number of slide outs, so be sure that your warranty covers all of the slides.
Entertainment Systems: This would cover TVs, audio and video components, VCRs, DVDs, stereo equipment, speakers, GPS systems etc.
Deluxe / High Tech Components: This will apply to a variety of items such as ice makers, washer/dryers, anti-theft systems, etc. Check the wording in each policy to see what might not be covered if you elected not to take this option.
Premium Appliances: The Premium Appliance option is similar to the "Deluxe / High Tech" option and would apply to appliances normally found in high-end RVs. This may include ice makers, washer/dryers, convection microwaves, etc. Check the descriptions for which option may be more applicable to your RV.
Diesel Engine / Turbo Charger: If your motor home has a diesel engine and/or turbo charger, you will need to consider adding this type of coverage. HINT: If your drive line is covered by a 5 year - 100,000 mile factory warranty, you should be allowed to omit this coverage. If a warranty company tries to add this EXPENSIVE coverage without inquiring about your factory drive-line coverage you should be cautious about the companies ethics.
You should always compare the cost of a lower-cost coverage PLUS the price of any optional coverages vs. the cost of a top-of-the-line protection plan that may include all or most of the optional coverages. Many times you can purchase a quality coverage for little more than an average plan plus the cost of the optional coverages. You will normally gain additional coverage and benefits by choosing the higher end plan.
Call if you have any questions about warranties and our professional staff will be glad to answer your questions.
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