What a joke
I bought this hopping for peace of mind. I bought a $50,000 fifth wheel spend a extra $5000 for extended coverage that according to the sales people cover all major expenses but when the furnace quit...
Forum Discussion
Scott Blanc wrote:
The reason people buy extended warranties or Mechanical Breakdown Insurance is because they are not willing to play the odds. Just like your homeowner's insurance or your auto insurance, the odds are that if you just kept your premium payments over a 20 year period, you would be money ahead. BUT a significant percentage of our customers fall on the other side of the equation as well, they have major repair bills paid by Good Sam for them. In fact, one out of every three Good Sam ESP customers has a claim paid EVERY YEAR. That's a much higher percentage than you will find for homeowner's insurance or auto insurance yet we would never dream of not protecting our homes or our cars.
You mention wear and tear, and this is a big issue. Good Sam ESP cover parts that fail due to wear and tear, and we will continue to cover your RV until it is either eighteen model years old, or exceeds 150,000 miles. While a lot of failure do occur during those later years, we find that there are enough mechanical components that can go wrong that we save our customers major repair bills for RVs and trailers of all ages.
Yes it is all about risk taking. The risk is still in buyers favor because insurance companies need to pay their sales commissions and other expenses which includes making a profit. Also if one is handy and can do many of the repairs the odds even get better for them. It is all in the math and actuary calculations. The risk of extended warranty considerations is much different than home owners or auto accidents and should not be put in the same risk taking category because one would not get sued for a broken appliance on other RV parts. Also there is no legal or loan requirement to get extended service agreements-- like there is for auto and home.
As far as wear and tear is concerned I stand by my assertion because many repair organization tell me they seem to get into arguments with insurance companies on these issues to determine cause and fault even though it simply wore out. The insurance companies are quick to blame to avoid paying the bill.
