Many consumers are uncertain when it comes to the question of
Extended Service Contracts, or RV Warranties, as they are more
commonly called. They're not sure if they need the additional
protection and coverage that an extended RV warranty can offer.
Many people have been lead to believe that extended RV
warranties are simply a profit center for the RV dealer. This is
true to some extent. Many RV dealers mark up the warranty prices
from 100% to 300%, however Internet based companies can be much
more competitive when it comes to RV warranty prices.
You shouldn't allow yourself to be pressured by the dealer to
add the coverage when you are signing the purchase papers on
your new RV. You may decide to add it at that time, but you
should shop around and compare coverages and costs, just as you
did when you purchased your RV.
Most RV manufacturers warranty their new units from 1 to 2
years. If the RV is motorized, the chassis manufacturer may
warranty the engine and drive line for a longer period.
If you have purchased a used RV from a dealer, there is
generally a very limited warranty, if any... normally lasting
approximately 30 days. If you have purchased a used unit from an
individual, there is generally no warranty whatsoever.
In most cases, you must initiate your warranty coverage before
your manufacturers warranty runs out. Many companies however,
will allow you to warranty a vehicle which you have purchased
used, or after the manufacturer's coverage has expired.
An extended RV warranty is an excellent way to protect your
investment. Many RVs cost nearly as much as a new home, and in
some cases, even more. Why not spend a little extra for a LOT of
additional peace of mind while you travel?
Internet Based RV Warranty Companies
Just as the RV dealer has a very high overhead, commissions and
other costs to consider when pricing the coverages he offers;
Internet based companies usually have much lower operating
costs. Don't assume that the Internet based RV Warranty
coverages are less comprehensive than what the dealer has
offered.
Internet companies can normally provide many of the same
warranty programs available from RV dealers. The are not only
able to provide the same, or very similar warranty program the
dealer offers, but at a much lower cost.
Consumers should always investigate the company that administers
the warranty and claims, as well as the company that re-insures
the policy. In other words, if the primary company went out of
business, you are insured that the "re-insuring" company would
step in and continue to honor and administer claims on existing
policies.
Points to Consider
Claims Payments
You need to be aware of how the claims are paid. The preferred
method of claims payment is through the Warranty Company's
corporate credit card. This allows payment to be made directly
to the repair facility. Some companies require you to pay for
the repairs first - and then submit the claim. It can take weeks
or even months to recover your out of pocket expenses in this
case.
Deductibles
You will have a choice of deductible amounts, normally ranging
from ZERO to $200, or more. There is normally very little cost
difference between the lower and higher deductible amounts. It
is usually advantageous to choose a lower deductible amount
since the deductible will apply to each and every repair done to
the RV.
Termination and Transferability
Your warranty coverage should be transferable if you sell your
RV. It should have a prorated refund policy if you decide to
terminate the coverage at any time during the warranty period.
Repair Facilities and Coverage Areas
You should also be sure that you could have any covered repair
done at any authorized RV repair facility. The coverage should
be good anywhere in the United States or Canada. Rarely, if ever
will a warranty cover you in Mexico, so keep that in mind if you
decide to take a vacation south of the border.
Additional Benefits
Many RV warranties have additional benefits such as towing
reimbursement, rental car allowances, towing and road service,
and lost key and lockout service. Some plans will even pay for
your meals and lodging while your RV is being repaired.
Optional Coverages
Most policies also offer optional benefits at an additional
cost. These options can cover items such as: Seals and gaskets,
audio and video components, additional towing benefits,
commercial use and even normal wear and tear.
You should also be aware that California is now a "dealer
obligor" state. The dealer is responsible for the performance of
the service contract, and not the administrator, nor the
insurance company. Online and telephone solicitor warranty
companies are prohibited to sell directly to California
Residents and that means any online or warranty company.
Summary
Most experienced RV'ers will tell you that a good warranty is
like a gun... It is better to have it and not need it, than to
need it and not have it. The key is to find the best coverage
possible for the best price.
You depend on your RV when you're on the road for lodging and
transportation and you want it to work properly, especially when
you're hundreds or even thousands of miles from home.
Extended RV warranties can provide peace of mind and are usually
well worth the money spent. It's up to you to research the
various companies and programs offered to obtain the best
coverage for the money. Thanks to the Internet, it is much
easier to compare pricing and plans and chooses the coverage
that's just right for you and your RV.
Barry Wilder
President - Best Rate, Inc.
About the author:
Barry Wilder has been involved in various areas of the RV
business for over 25 years. He is currently the owner of Best
Rate Financial Services, providing loans and refinancing for
RVs, boats and aircraft. They also provide RV and Boat
Warranties.
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