01/30: Extended Warranties Continued--Good Sam
Category: General
Posted by: Lee Litchfield
I was asked yesterday what I thought about a Good Sam's extended warranty. I've honored them at the dealership for many years, but we've never sold them. I looked them over and have some observations. The main thing is to know what you're buying.
It is sort of a hybrid policy. It's mainly an inclusionary policy, but unlike some others who only tell you what they cover, Good Sam tells you a few things that it doesn't cover, which you normally only see on an exclusionary policy. Another positive is they are backed by insurance, which many aren't.
What's not surprising is how limited the coverages are. That's OK as long as you know it's not going to cover much that's likely to break. Most of the potentially expensive repairs are excluded. If you expect a continuation of the manufacturer's warranty, you're probably not going to be very happy when you go in for most repairs. If you look at it as an insurance policy that will take care of catastrophic failure of the engine or an appliance, then you'll be fine.
Our experience with GS has been good as far as them paying claims on items covered. The policies just don't cover a lot of items or the deductible gets you. So many customer's expectations are too high and get upset. I suspect that most buy online and it's easy to not realize the hundreds of items that are not covered. That's why I like the exclusionary policies. It's all there in black and white. It more closely mirrors the manufacturer's warranty, which the customer is used to. However, a good exclusionary policy is going to cost more. Included in the note, it will usually be much less a month, but for a longer term.
If you have bought a new unit and didn't get an extended warranty, you can still get it, although you won't be able to put it on the loan. However, it is VERY IMPORTANT that you purchase the service contract while it is still in the manufacturer's warranty. If you don't, you will be required to have an RV service center inspect your entire coach and certify it is all in working order. The inspection will cost at least $200 or $300. Anything not working will be required to be repaired. And here's the real kicker--you could have got a 7-year warranty for about the same as a used 2 or 3 year warranty! The warranty companies consider them used if purchased after the manufacturer's warranty runs out. The thinking is there is less likely to have immediate or fraudulent claims if the policy is taken out when the owner is not liable for repairs.
Go camping more--have more fun! Lee
It is sort of a hybrid policy. It's mainly an inclusionary policy, but unlike some others who only tell you what they cover, Good Sam tells you a few things that it doesn't cover, which you normally only see on an exclusionary policy. Another positive is they are backed by insurance, which many aren't.
What's not surprising is how limited the coverages are. That's OK as long as you know it's not going to cover much that's likely to break. Most of the potentially expensive repairs are excluded. If you expect a continuation of the manufacturer's warranty, you're probably not going to be very happy when you go in for most repairs. If you look at it as an insurance policy that will take care of catastrophic failure of the engine or an appliance, then you'll be fine.
Our experience with GS has been good as far as them paying claims on items covered. The policies just don't cover a lot of items or the deductible gets you. So many customer's expectations are too high and get upset. I suspect that most buy online and it's easy to not realize the hundreds of items that are not covered. That's why I like the exclusionary policies. It's all there in black and white. It more closely mirrors the manufacturer's warranty, which the customer is used to. However, a good exclusionary policy is going to cost more. Included in the note, it will usually be much less a month, but for a longer term.
If you have bought a new unit and didn't get an extended warranty, you can still get it, although you won't be able to put it on the loan. However, it is VERY IMPORTANT that you purchase the service contract while it is still in the manufacturer's warranty. If you don't, you will be required to have an RV service center inspect your entire coach and certify it is all in working order. The inspection will cost at least $200 or $300. Anything not working will be required to be repaired. And here's the real kicker--you could have got a 7-year warranty for about the same as a used 2 or 3 year warranty! The warranty companies consider them used if purchased after the manufacturer's warranty runs out. The thinking is there is less likely to have immediate or fraudulent claims if the policy is taken out when the owner is not liable for repairs.
Go camping more--have more fun! Lee