extended service plans

[WETSNAIL]

I have just paid a huge bill to have my 1999 Vectra Grand Tour emergency brake fixed. Has anyone used the Good Sam extended service plan? I am not sure whether it would be worth $2,000 a year or not. I know i'll start having problems, but how good are these plans?
Thanks, Cork

[Bigdog]

I have had aftermarket warranties on both my previous Excursion and Suburban and came out ahead,except that they didn't pay for the three injectors that went bad in the middle of a vacation.
I posted this before,but when I bought this MH used in 2010,I looked at several service contracts,but the one I finally decided on didn't cover fridges. I listened to the folks that said to put the money in the bank instead,so $4K went into the bank and in the first 6 months I paid out over $6K in repairs of which my total cash outlay with the contract would have been $800 in $200 deductible payments.Since then,the only thing wouldn't have been covered that hasn't broken has been the fridge.
I now have a Cornerstone service contract that I got thru Wholesale warrenties out of San Diego that's good for another 4 years with $100 deductible. Wholesale warrenties, a broker, has been going to all the major RV rallies for a couple of years now and have had prety good reviews.

On edit; I just had to take the MH in for a hot fridge and they found a bad cooling unit and it was fully covered. :B :B

[Ductape]

Exactly right Jayco. And as someone else wrote, you're really wagering against the house.
The companies offering these have much more information than we do about failure rates and repair costs, and they are not in business to lose money.

But for people who value the certainty of the contract vs the uncertainty of paying for the repair, go ahead. After all an RV is completely discretionary spending, so if someone feels better having a service contract, then why shouldn't they have it?

[Jayco-noslide]

For deciding whether or not to purchase an ext. warranty, for me it's all about the true cost of keeping a motorhome on the road over a long period of time. It's going to be expensive with or without a warranty but I believe that in the long run it will be less without an ext. warranty.

[dougrainer]

Executive wrote:

Passin Thru wrote:
If they are so great why does Consumers Reports highly recommend you stay away from them?

Because they DO NOT ! Please POST WHERE you get this information. :S:S

Be sure to specify where they "HIGHLY RECOMMEND" you stay away from RV, MOTOR HOME, TRAILER etc. service policies. Thank you....Dennis

As 20 year subscriber to CR, they have NEVER recommended ANY type ESC for any product. The have stated to NOT purchase any type ESC. They have never reviewed an RV at all. As a 35 YEAR RV TECH, I would purchase a ESC for my new motorhome or trailer. Just like Auto's over the past 20 years, there are a LOT more complicated expensive items that can break down and cost a lot of money to fix. The main thing is, the PRICE, just like negotiating the price of your new RV, is negotiable also. If you have the money in the bank to pay for your problems, then don't buy, but very few people have that level of money in the bank. You must READ and UNDERSTAND what is covered and NOT covered in any ESC. They are NOT a warranty, they only cover what is in the contract, and a LOT of people do not understand that. Doug

[Executive45]

Passin Thru wrote:
If they are so great why does Consumers Reports highly recommend you stay away from them?

Because they DO NOT ! Please POST WHERE you get this information. :S:S

Be sure to specify where they "HIGHLY RECOMMEND" you stay away from RV, MOTOR HOME, TRAILER etc. service policies. Thank you....Dennis

[Passin_Thru]

If they are so great why does Consumers Reports highly recommend you stay away from them?

[Jayco-noslide]

In the long run, best to save up some money yourself and have it available for inevitable repairs. And, the older your unit is, the more an extended service plan is going to be or else it will cover less. If I can't afford the repair, then I can't afford the product.

[lj2654]

Read it closely . Mine is $2000 a year and gonna be done with it at 16 years old on my coach deadline for coverage of an 01. In almost three years I have paid $6000 into it and had about almost $4000 in repair bills on covered items paid by the plan. So its a toss-up.......do it or not do it!

They wouldn't cover my refrigerator as they said the cooling unit was too rusty...I argued the point but they didnt budge!..that was almost $2000 out of pocket, if they had covered that I would have broke even.

[dougrainer]

Get a copy of the Good Sam 1 year ESC and read it. SEE if what you had fixed was a covered component. The 1 year ESC's are very restrictive on what they cover. They usually do NOT cover the same complete items a multiyear contract covers. Doug

[Executive45]

Real life experiences here....I've had two policies and have been pleased with both. The first paid for a third member that lost a gear, $5400, a middle A/C, transfer switch and microwave, $7800 and the second has paid for a front A/C, $1900, slide repair, $450, an Amish unit for my Norcold, and a blow out, $733. So, yes, I believe they are worth it.

That said, a couple of caveats...first they are NOT warranties, they are service contracts. Contracts should be read VERY CAREFULLY. My current contract cost just shy of $5k for 4 yrs. I opted for a $50 ded, tire add-on as well as an extra fee to have the 'weasel' clause removed. That's the clause that says "If a covered part fails due to the failure of a non covered part, the covered part is not covered." Also, make sure, if you do buy, that it's an "Exclusionary" contract. Those contracts list the items that are excluded from coverage. If it's not listed, it's covered. That way you know exactly what you're buying. They also will pay for mobile mechanics that will come to you. Keep in mind, though, that there are specific instructions that will need to be followed to get reimbursed. So far, I've not had a claim denied.

I'm pretty handy at fixing things, but having the peace of mind knowing if I don't want to do it myself, I have a valid backup. For instance, I replaced two solenoids this past year that the insurance would have covered. It simply wasn't worth it to me to file the claims. I hope this helps...good luck with your decision.....Dennis

[10forty2]

For any insurance plan you buy, you are actually making a wager with the company. You are betting them that you WILL have a claim before they make their money back and they are betting that you WON'T have a claim before they make their money back. Like any casino in Vegas.....they payout much less than they take your money. Not saying that we don't need insurance plans and/or warranty plans, but just saying what they are.

I say take the bet against yourself and invest the money you would spend on premiums for extended warranties. That way if you don't have a claim, you are making the money yourself (interest or dividends)and if you DO have a claim, well, you have saved the money to pay for it.

To me, it's kind of like using the federal income tax refund as a savings plan. I hear of many people that are soooo happy that they will be getting a refund, and in fact they withhold more of their paycheck each month to ensure that they get a refund at the end of the year. Not sure why that's a good thing since what you're doing is letting the government use your money interest free.

[Not_a_Clue]

You might want to check to see if you can get an extended warranty on an older coach. I think most only go out 13 to 15 years. And $2000.00 a year seems high. Try Wholesale warranties.

[gbopp]

Extended Service

Extended Service Plan

Extended Warranty

Extended Warranty Plan

Lots of reading and different opinions.

[Dick_B]

I just searched this Forum for `extended service plans' and found 13 previous posts. I believe, in general, those service plans are very helpful to the providers bottom line. It's like an insurance policy and you will note that the tallest buildings are built by insurance companies.