extended warranty or self-insure

[salwolfe]

It's a toss up financially, I think. The big selling point for me after negotiating them down on the extended service contract, is that I get more for my RV when I sell it because of the peace of mind of the new owner. They always pay lots more because they don't have to worry about problems when the extended service contract is transferred to them. Has always been good for me plus the payments on parts, labor and travel away from home benefits.

[mtnlvr]

Originally Posted by sailski

I have a 2017 Forester MBS 2401WS built on a 2016 Sprinter chassis with 32,000 miles. I bought a 5 year warranty from an online broker for about $2,550. I have viewed the warranty as for the coach and not the chassis. Thus far I needed one repair during the first year FR guarantee for a battery charging problem. I might have used the warranty for some other problems I have had but felt it was better to fix them myself or at least pay for the repair than to bother submitting a claim. The fact that I live in the country and am 100 miles away from the closest RV repair or dealer plays a part here though.

Mercedes has been great In taking care of problems with the chassis by towing the motorhome hundreds of miles when there was a problem at their expense. I've been towed from home to Denver ,235 miles, because 2 150 amp fuses blew and I couldn't start the engine and on a trip from Texas it went into limp home mode and I needed a 4+ hour tow to to fix a problem with the clean air exhaust system. I have used Mercedes for oil changes and scheduled maintence however, because I think it can eliminate any finger pointing when I have a problem. I do not feel confident with this vehicle since I have experienced a check engine light on 4 occasions. My daily driver, a Honda CRV, has been trouble free for the 82,000 miles and 5 years of ownership.

Agreed on those dang check engine lights! One came on during a recent trip for the DEF light even though it was full. I’ve considered switching to a Ford engine in the future for proposed cross country or Alaska trips. I don’t want to be hundreds of miles from a Mercedes dealership.
I made the mistake of letting a rv dealer in Ventura, CA ( Barber), do my first oil service. They blew up my engine using an off label filter. I was only five miles into a planned six week trip. I ending up waiting over a month for a new engine to be shipped from Germany. It was their fault and their insurance covered it- over $20,000. Now, I ONLY will use Mercedes dealerships.

[n1acguy]

Originally Posted by medalguy

I figure the reason dealers sell extended warranties is not much because they want you to use it but because they make a lot of money on them. True some folks do have issues and need them, but if you can afford a $100k motor home then you can probably afford any repairs after warranty. I have never bought an extended warranty on anything.

Yep. they really can't be making that much off the sale itself. Just like auto dealers they make more from manufacturer incentives, financing, and dealer add ons.
I don't buy extended warranties either. The one time I did, the issue I had wasn't covered.

[Oaklevel]

The extended warranty is insurance great if you need it, a waste if you don't.

40 years of owning vehicles and campers never needed to use one.

[Tiggerdad]

Thing to think about:
What is the remaining warranty on the chassis? Does the warranty cover 5 years beyond manufactures warranty. If not, subtract the existing warranty from the 5 years to determine the actual length of coverage

Does the warranty require you to take to a dealer for annual inspection of the systems and you pay out of pocket for those inspection?

The manufacturer of the appliance, AC etc. usually have a warranty of 2 years. If so, does the extended warranty cover an additional 5 years.

Point I am trying to make is that often time these warranties are not truly 5 years.

[The Evil Twin]

Originally Posted by Tiggerdad

Thing to think about:
What is the remaining warranty on the chassis? Does the warranty cover 5 years beyond manufactures warranty. If not, subtract the existing warranty from the 5 years to determine the actual length of coverage

Does the warranty require you to take to a dealer for annual inspection of the systems and you pay out of pocket for those inspection?

The manufacturer of the appliance, AC etc. usually have a warranty of 2 years. If so, does the extended warranty cover an additional 5 years.

Point I am trying to make is that often time these warranties are not truly 5 years.

You bring up a VERY good point! That was actually one of my arguments with the dealer on my Ford. I got them to drop the price and increase the term to 8yr/ 120k. For $2700 I couldn't turn it down. Upper oil pan leak and a DEF heater made it all worth it.

[RJOL]

Do what makes you most comfortable, but remember.... If you buy this from a dealer, or even on your own, there is a very large mark up for these policies and we have all heard the horror stories about getting the insurer to pay. The dealers love these as they can make thousands off a sale... You might be ahead to set up a savings account and put some into each month for emergency repairs.

[babock]

On a trailer, its a no brainer to self insure. On a Mercedes Sprinter with all the electrical harness issues they have had, I might actually buy one for it.

[Darryl Honda]

I live in Manitoba, Canada, for what that's worth. You can buy extended insurance;at the dealer with no deductible at the dealer, if you have a problem. {like a lot of places as I have learned after being on this forum,thank you}. But you really don't get the contract (when you buy)until you pay and are ready to leave with your brand new trailer. {unless of course you are like all of us and read the entire contract before we leave..ha}... Which I have to say, you are more excited to leave with your brand new trailer then seeing your first born arrive. Sorry Ladies. Only thing I have to say is that even though the contract cost you 2,995.00 ${like mine} you only get back 2000.$ if you don't use it(as per contract,if you read it). And, they tell you ....you get all your money back, if you don't use it. Great, I thought..But you don't you only get 2000$.
So...as of today it will cost me 995.$ for not using my insurance contract. Suffice to say,I did buy a Propane Detector Sensor after 1 year because it went cow ****. If I would have put a claim on it, My free 89.99$ detector from Amazon would have cost me 2995.00$... Sorry,, and the big hype about the fridge going on year 2 of owner ship. Well..I'm sure it's not 2995.00$..... I,m just saying...
I am also just wondering how many people bought trailers/moter homes/anything camping and had problems that needed or used insurance to fix there problems.

[friverc]

I appreciate all of the good input. Lots of helpful experiences. I ended up buying the extended warranty. Insurance is a perverse thing. The only way to get my value is to have a problem, or even to die, as with life insurance. That is hardly winning.

[Darryl Honda]

Originally Posted by BehindBars

There is no question in my mind, I would self insure. You can bank the money instead, and do a lot of repairs, if they’re even needed, for $6000.

And Yes I have to Agree''''

[cekkk]

I can probably pay for my next car with the $$ I've NOT spent on extended warranties.

[Darryl Honda]

No Kidding.....Good for you... My son is one of those computer geeks.... Ha. yeah I hate that to. Used to work for Best Buy. He told me don't buy the warranty. It;s a ripp off.. For the money you spend you will see no return. They all last One year,,,,,they fail after 6/7. For the money you pay then for insurance you can buy a new and probably bigger one. I'm just saying......

[FFred]

"The only way to get my value is to have a problem, or even to die, as with life insurance. That is hardly winning."

Not true , a paid up whole life policy can be borrowed against at no cost .

And no tax cost, unlike stocks , bonds ....

[babock]

Originally Posted by FFred

Not true , a paid up whole life policy can be borrowed against at no cost .

Whole life policy...the worst thing financially you could ever do....maybe annuities as well.

[1eyeky]

Don't buy the policy from Camping World. We tried to use our last Dec when heavy rain ,tornado,knocked out our furnace controll board. Assurance insurance which was the policy we bought wouldn't pay. Our 27RLS is only 2 yrs old. I have been trying to cancel the policy since then and I get no response,even after sending all required paperwork.
It's up to their discretion.
Just a waste of hard earned$$$!.

[MR.M]

Originally Posted by 1eyeky

Don't buy the policy from Camping World. We tried to use our last Dec when heavy rain ,tornado,knocked out our furnace controll board. Assurance insurance which was the policy we bought wouldn't pay. Our 27RLS is only 2 yrs old. I have been trying to cancel the policy since then and I get no response,even after sending all required paperwork.
It's up to their discretion.
Just a waste of hard earned$$$!.

They have to refund you the money prorated from the day you cancelled it . may be time to have a lawyer give them a call , or walk in in person and deal with it .

[Darryl Honda]

Not exactly sure were this should be an have never started my own post thing.
But since we are on the warranty issue.
This guys day started out pretty good until he got to the lake. I can here him saying "Follow me I'll show you were the Big Ones are". Goes to show you the ice is not the same thickness everywhere.
Gone Fishing.jpg

[pgandw]

Originally Posted by babock

Whole life policy...the worst thing financially you could ever do....maybe annuities as well.

Buying term life and investing the difference only works if you actually invest the difference.

All too many of us will have a health issue later in life that will make term life insurance too expensive to be worthwhile. Or we have children in our 40s and need to buy term insurance in our 60s when the price starts skyrocketing.

The relatively small whole life policy that I bought and kept current (became universal life with a better rate of return) will be the only policy I have when I turn 70. A congenital heart condition discovered in my 40s, and the wife's cancer discovered in her 60s means very little insurance for either of us should the other pass.

Fred W

[babock]

Of course you invest the difference. That's the whole point.

Just think of the people who bought whole life in 2009. They missed out on a period of investing, we have never seen before.

And, by the time you are 70, there is really no point in having life insurance.

Originally Posted by pgandw

Buying term life and investing the difference only works if you actually invest the difference.

All too many of us will have a health issue later in life that will make term life insurance too expensive to be worthwhile. Or we have children in our 40s and need to buy term insurance in our 60s when the price starts skyrocketing.

The relatively small whole life policy that I bought and kept current (became universal life with a better rate of return) will be the only policy I have when I turn 70. A congenital heart condition discovered in my 40s, and the wife's cancer discovered in her 60s means very little insurance for either of us should the other pass.

Fred W