Extended Warranty - an informative post

There are several different philosophies about extended warranties. Should you buy into one or not? When we bought the Alfa four years ago, we passed on the extended warranty offered by the dealer and purchased one recommended by another blogger. It was more reasonable and seemed to cover more.  As it turned out, we tried making a couple of claims that were denied, or only covered a very small amount, so we just took care of it ourselves. But it did pay out on two claims, not in full, but enough that we got about 1/2 of the original premium back. 

So when it came time to consider getting another extended warranty on our eight year old motorhome, we were willing to do it. I looked around and decided on using Wholesale Warranties in San Diego. It had been recommended on the RV Dreams blog, and I could not find anything but positive reviews for the company. 

A three year, 36,000 mile extended warranty for an eight year old diesel pusher is not inexpensive. But as one person put it, it is legalized gambling. We hope we don't have a major breakdown, but if we do it should pay off. Anyway it should lessen the pain. 

One of the things I appreciate about the policy we are getting is that before issuance, a full inspection of the rig was required. That happened yesterday, and the inspector wrote the most glowing evaluation possible! Yes, we had to pay for it, but we know they won't call "pre-existing condition" on us like the other company did. We are as good as a new rig in the eyes of the insurance company (I hope). 

When I started with "there are several different philosophies about extended warranties", I'm thinking of people who "self insure" by putting money away each month toward repairs. When we started, in theory I set $5000 aside for repairs, but as it turned out all our money is sort of lumped together in savings and investments. My theoretical $5000 was quickly used up for new tires, carpeting, satellite dish, TV, etc. These were all necessary, but not necessary emergencies. We expect to spend $1000 per year on normal maintenance, but that wouldn't go very far toward a major engine breakdown.  So we are willing to pay the $132 per month for the extended warranty. For us it is easier than trying to maintain a special fund for repairs vs. maintenance and improvements we just want. It's all money spent.

Those of you who have fifth wheels or travel trailers would certainly have lower costs, but then you still have to have a big, powerful pickup for pulling some of them. I don't know if that is less expensive to maintain (in total) or not. I guess it's all just apples and oranges, and only the insurance companies are winners in the long run.

I just hope we have no breakdowns before September 6. That is the day the old policy expires and the new one starts.

We have gone over the new policy as carefully as we can and think it has as good coverage as we can get on our "old girl". One thing that is attractive to me (but wasn't why we bought this policy) is that it covers four days at a motel if the rig is in the shop. Yes the coverage is only for $60 per night, but it is better than nothing!

Comments that include your thoughts on extended warranties are welcome...