Extended warranty...? Yay or Nay or does it depend?

[dkoldman]

Originally Posted by BobC

Strange, when my traditional insurance companies (auto, rv, homeowners) pay out, they generally cut me a check immediately for their assessment of the damage and tell me to contact them if the repair shop says it will cost more. I'd think the extended warranty companies would be smarter than you describe.

Insurance companies are regulated, ESPs are protected by the fine print of their legal contract. They know every which way to Sunday to legally by their contract to deny you a claim. My insurance agent once wrote me a $900 check out of some slush fund account to give us because the wind had blown over a Cedar Elm tree that we had bought for $300. If that is not enough, we didn't call or intend to file a claim about the tree. We were talking something else and we were just talking about the recent storm.

CreativePart & Morich describe my perspective to the Tee.

There is a reason why everyone has Insurance but only a few buy the ESPs. I get the peace of mind perspective of some, but that process they may view as piece of mind would be living hell for me. As I stated above, the fact they would not allow me to buy a new Fridge was nothing short of unbelievable.

Simply put, I self insure my Auto/RV/ boat/ motorcycles repairs beyond Mfg and OEM warranty, and if I have doubts that major failures may occur, I either did not buy product or will sell as the product has aged.

[BobC]

I think a lot depends on a person's financial resources and DIY skills, and, as with any investment, their risk tolerance. It's very much a personal decision.

[dkoldman]

Originally Posted by BobC

I think a lot depends on a person's financial resources and DIY skills, and, as with any investment, their risk tolerance. It's very much a personal decision.

I certainly agree it is personal decision or choice.

I think perspective being made is a financial one because it can be supported by empirical data when an open question is made as to whether an ESP made sense when buying a new RV auto etc.

The irony and what I have never understood is why is it assumed that if one finances are implied not as strong; they should spend $7k to $10k on these plans? I only try to point out to educate because the hard reality is the vast majority of those that purchase these plans loose money. If it were beneficial for 51% of the owners that buy, the ESP Providers would go out of business in 3 months.

Also, I don't put my DIY skills very high when it comes to RVs. I also consider myself cheap ( not poor); but as Morich put it; I tend to just enjoy saving money out of habit.

Again, your point is made and clear to me. I was hopefully just trying to point out my belief that in the big picture; it is not financially sound except for the few that may have success story. Those success stories like the few casino winners are NOT the norm. If someone conveyed financial concerns to me, gambling is the last thing I would recommend for them.

[Morich]

When I have known folks who buy lottery tickets often, it has been the folks who SHOULD NOT be gambling the food funds on tickets!
ESP is one that I feel falls into near that territory.

I'm sure it varies a bunch depending on the policy but we know that insurance companies make lots of money. We know that they spend lots on things like adverts that must bring in money, even though it does nothing for repairing things!

One of the things I got caught on was the deductable. I had an electrical problem which nobody seemed able to fix. So I had to keep searching for that one special Ford dealership that could do the "special" job of finding and fixing the problem.
I went throught three different dealers in at each, they started with the battery needed to be changed, even though they agreed the battery had just been changed.
The deductable, paid upfront before repair, was $100, then the battery was not a covered item, so that was another $150 ($50 more than I could buy the same battery!)
At some point, I simply said it was too much trouble and costing too much and traded the car!
Yes, there is the theory that I could have gone legal and laid a bunch more money on the table, gambling that I might break even, but I'm way too old to wait out that game!

[AJMike]

It depends.

My rule is: New RV, no extended warranty. Used RV, extended warranty for first year, but not from RV dealership. Get one from Good Sam or some other responsible vendor.

RV dealers ask ridiculous prices for their extended warranties, and they are used as a profit center by the dealers. When we bought our last (new) RV the Finance guy tried to talk me into one of those warranties, saying it was only $8,000. Only $8,000, I asked, laughing?

Are you a veteran, he asked? Yes. Oh. For veterans we have a special price. Only $4,000. So even offering a small pushback they halved the price.

Don’t do it. Go to Good Sam and get their ESP, or CoachNet. Or someone else, if you want an extended warranty.

Just my opinion.

[CGLAKE]

I’ve had two policies since 2016 that covered two different Winnebago ERA’s. Broke about even on both of them, that is the policy covered a little more for repairs than I pd. So for me, it was worth it since I could of had more stuff go wrong. I have Good Sam. Pretty satisfied with them and a whole lot cheaper than going through dealer. Some people are lucky and don’t need it. I’m not one of them🙈

[dkoldman]

Originally Posted by CGLAKE

I’ve had two policies since 2016 that covered two different Winnebago ERA’s. Broke about even on both of them, that is the policy covered a little more for repairs than I pd. So for me, it was worth it since I could of had more stuff go wrong. I have Good Sam. Pretty satisfied with them and a whole lot cheaper than going through dealer. Some people are lucky and don’t need it. I’m not one of them🙈

Or could it be that you are lucky, and don't know it to have broken even When I am in Vegas and I get back home about even, I feel as if I have won

[fyreplug]

There are so, so many what ifs when deciding whether to purchase a ESP or not. On all my non-RV vehicles it always paid me to purchase one. Now after reading all the replies and looking extremely close at the exclusions on several different ones I say, "Why would I even think about it." There are a lot of loop holes in the exclusions. I had one person who could not find the exclusion page when I asked for it and he was the one pushing to sell it. He had to go search for it.

I have come to the conclusion to put aside the funds what you would have paid for it and enjoy the great outdoors.

Blessings to All.