Forum Discussion
DownTheAvenue
Aug 11, 2017Explorer
An "extended warranty" is really an insurance policy. For money you pay the provider, they promise to pay you for repairs for anything that fails that you insured with them. The problem is that these insurers know what fails and what doesn't and usually carefully word their policies to exclude common failures. In addition, these policies have massive profits for the seller and the underwriter, so much of the policy costs go to profits. That tells you how much they reserve for payouts for policy claims. The odds are not in your favor.
Sure, something very expensive could fail and you could recover all your policy costs on one repair. But, you could buy a lottery ticket and win big, too. Many policies have significant hoops you have to jump through to recover any repair expense, and the Good Sam policy requires you use a Camping World location for maximum payouts. With all the problems they have, that is a big issue.
The bottom line, read the actual policy, not the sales brochure, to understand what is covered and not covered. Then make up your own mind.
Sure, something very expensive could fail and you could recover all your policy costs on one repair. But, you could buy a lottery ticket and win big, too. Many policies have significant hoops you have to jump through to recover any repair expense, and the Good Sam policy requires you use a Camping World location for maximum payouts. With all the problems they have, that is a big issue.
The bottom line, read the actual policy, not the sales brochure, to understand what is covered and not covered. Then make up your own mind.
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