RV Warranties & Extended Service Contracts

How to find the best RV Warranties aka: Service Contracts or Agreements.

Many consumers are uncertain when it comes to the question of extended service contracts, or RV warranties, as they are more commonly referred to by consumers. They're not sure if they need the extra protection an extended RV warranty can offer.

They have been lead to believe that warranties are simply a profit center for the RV dealer. This is true to some extent. Many RV dealers mark up their warranty prices from 30% to 50%, however, Internet-based companies can be much more competitive when it comes to RV warranty prices.

You depend on your RV when you're on the road for lodging and transportation and you want it to perform properly, especially when you,re hundreds or even thousands of miles from home.

But WHY Limit the Amount to $50,000 or More?

Since our processing costs are about the same, no matter if it is a $25,000 loan or a $250,000 loan. These costs, (and processing time), when added to the rates in loans under $50,000, would make us less competitive than some other sources.

You should be aware that many other online brokers will all be looking at many, if not all of the same lenders. These national and larger regional lenders, like our own, tend to specialize in amounts over $50,000, so be careful who you authorize to pull your credit reports if you submit an actual application.

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.

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 manufacturer's warranty runs out. Many companies, however, will allow you to warranty a used vehicle you have purchased, or after the manufacturer's coverage has expired, although an inspection is normally required.

Internet Based RV Warranty Companies

Just as the RV dealer has a very high overhead, commissions and other costs to consider when pricing the coverage he offers, Internet based companies usually have much lower operating costs.

Internet companies can normally provide warranty programs that are very similar to those offered from RV dealers. In some cases, they may even be able to provide the same warranty program the dealer uses, but at a 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 guaranteed that the "re-insuring" company would step in and continue to honor claims on existing policies.

RV Warranties - Points to Consider

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 and then submit the claim. It can take weeks or even months to recover your out of pocket expenses in this case.

You will have a choice of deductible amounts, usually ranging from $50 to $200. There is normally very little cost difference between the lower and higher deductible amounts, so it may be advisable to choose a lower deductible amount since the deductible may apply to each repair done to the RV.

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. You should also be sure that you may have covered repairs done at any authorized 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.

Many RV warranties have additional benefits such as towing reimbursement, rental car allowances, towing and road service, and lost key and lock-out service. Some plans will even pay for your meals and lodging while your RV is being repaired.

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 and Florida are now "dealer obligor" states. The dealer is responsible for the performance of the service contract, and not the administrator or the insurance company. Online and telephone solicitor warranty companies are prohibited to sell directly to California and/or Florida residents - and that means any online or warranty company.

RV Warranty - Summary

You depend on your RV when you're on the road for lodging and transportation and you want it to perform 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 choose the coverage that,s just right for you and your RV.