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RV Warranties - Are They Worth The Money?

RV Warranties - Extended Service Contracts

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,

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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.

Best Rate Financial Services RV

Warranties