katoom400 wrote:
it cost ~$1600 for 5 years of coverage with $75 deductible...
1. You will already have at least a 1 year warranty on the RV and its appliances, so you will be only buying 4 years.
2. It is an insurance policy not a warranty. You should read the policy, not the sales brochure, to understand what is and is not covered. You should also thoroughly understand what procedures you have to follow to recover any claim.
3. You should only buy insurance for anything you could not afford to repair or replace should a failure occur. On a trailer, the two biggest items that fail are the refrigerator and air conditioner. The Fridge is about $1500 and the A/C is about $700. Both of these have a life expectancy of 10+ years so it is very unlikely either would fail during your insurance policy.
4. The policies are very big profit centers for the dealer, so expect high pressure to get you to buy.
5. You will hear people say they have made money on their policy. That may or may not be true. Most people will not admit they made a poor money decision, so they will rationalize the purchase by exaggerating its merits.
6. Regardless, the policy seller is in the business to make money. They will collect money from many people and pay out to few. The odds are not in your favor.
7. These "extended warranty" companies are not regulated. Many companies have "gone out of business" leaving the policy holders with a worthless piece of paper.
