Preserve Extended Protection Plan, worth it?

[zelmoe]

Hey Friends, has anyone opted for the Preserve Extended Protection Plan pushed by our Airstream dealer? It's a 6 year 60K extended warranty for all the thing Airstream added to the Sprinter and then a little more, is it worth it??

[Rocinante]

No. I have never done that, would never do it. The only extended warranty I would even consider would be the one offered by Mercedes to cover the Sprinter components, and even that would be a tough sell.

[SWH]

Nope. I reject most extended warranties, but especially non-manufacturer vehicle warranties.

[MountainLife]

As new RV owners and the 3rd owners of our AI, we decided to get an extended warranty that covered both Airstream and Sprinter components. In our first year, we did use it repair our awning and it saved us some money. Ultimately, you have to ask yourself how you would pay for repairs should something happen. Some people advocate setting aside the cost of the premium as your repair fund which is one option. We have had a lot of bad luck with vehicle and appliance repairs in our 35 year marriage so opted to buy the extended warranty for peace of mind. Most importantly, read the policy and ask questions before buying. Not all warranties are created equal.

[uncle_bob]

Hi

Spent some time at the counter of a local RV outfit. The delay was the sole person manning the position being on the phone. He went through a *long* list of repairs to an RV. After each item mentioned, there was the phrase " checked with your warranty outfit and it's normal wear and tear. Not covered under warranty". This went on long enough that I finally left and went to another store to get what I needed. Needless to say both that dealer and the warranty outfit lost a customer that day.

There are a whole range of potential gotchas with aftermarket warranties. Some only apply to certain categories ( defective vs wear out ). Others require you go to one of their service locations. Some only work in certain states. Others cover parts, but not labor. Some cover labor at a "standard rate" that is well below what the shop actually charges. The list of problems folks have had goes on and on. Some plans are "sold" by one company and provided by another. Dealing with the selling outfit may be easy, even getting the provider on the phone may be near impossible ......

What is never clear is how much of this was explained when the policy was sold. Folks get rushed. Sometimes they forget what was or was not said. Since there are a wide range of policies (even from the same outfit) any sort of blanket statement is unlikely to be 100% accurate.

From talking to folks here and there, I run into about 10 folks who had trouble with an aftermarket warranty for every one that I meet who feels they got value out of one. Not a scientific sample, but likely more accurate than posts on the internet.

Bob

[Rocinante]

Still saying "No," when it comes to extended warranties for RV-related parts of the van, but if you really really want one anyway, try to find one that only excludes specific items they put on a list instead of one that only includes specific items on a list. With the former, you won't get surprised if they say, "Sorry, not covered," because it should be short, easily-understood list. With the latter, that bad-surprise experience is almost guaranteed, because it will most definitely be a long, detailed, boring, and confusing list that will subtly leave out the most expensive things that might go wrong.

[SWH]

I look at it this way: if you can afford a $200k camper van, you likely purchase many things each year for which someone is trying to sell you an extended warranty or protection plan of some sort (cars, appliances, computers, cell phones, TVs, tires, just about anything these days… Best Buy tried to sell me one on an electric toothbrush). If you decline them all and add up all the money you didn’t spend on them, the odds that you’ll suffer repair costs on enough of those products to exceed what you would have spent on warranties must certainly be very low. Then factor in the small print and headache of dealing with the warranty company, which in many cases won’t cover the full (or any of the) cost of a repair. Ultimately these plans are small, narrow and expensive insurance policies. My thinking is that the only thing you should really insure against are catastrophic expenses that would be a financial hardship to cover should they arise (e.g., auto, home, life, health insurance with deductibles). Otherwise extended warranties are basically just gambling, and just like in gambling, the odds favor the house.

[uncle_bob]

Originally Posted by SWH

...... My thinking is that the only thing you should really insure against are catastrophic expenses that would be a financial hardship to cover should they arise (e.g., auto, home, life, health insurance with deductibles). Otherwise extended warranties are basically just gambling, and just like in gambling, the odds favor the house.

Hi

In this context, I'd include coverage (both liability and catastrophic loss) for the RV to that list. Given how AS trailers generally stay well above "Blue Book Value" for a lot of years, I'd look into the numbers used in the "total loss" box on the policy.

So no, not all insurance is bad. Not all of it should be avoided.

Bob

[SWH]

Originally Posted by uncle_bob

Hi



In this context, I'd include coverage (both liability and catastrophic loss) for the RV to that list. Given how AS trailers generally stay well above "Blue Book Value" for a lot of years, I'd look into the numbers used in the "total loss" box on the policy.



So no, not all insurance is bad. Not all of it should be avoided.



Bob

Couldn’t agree more. Clearly traditional insurance coverage on an AI is essential. A warranty to cover its repairs from breakdowns of operational components definitely is not.

[Titus]

I think that all aftermarket insurance is, on average, a losing deal for the consumer. I suspect that even a manufacturers extended warranty business is a separate profit center, not subsidized by new vehicle or service part sales. So, on average, the consumer comes out behind. The only merit to it that I can see if if a person cannot afford the very-high-dollar repairs that could befall him/her without insurance. But I suspect this is not the case if a person can afford the Interstate to begin with. Same could probably be said about collision or comprehensive (not not liability) insurance on a vehicle.

[uncle_bob]

Originally Posted by Titus

I think that all aftermarket insurance is, on average, a losing deal for the consumer. I suspect that even a manufacturers extended warranty business is a separate profit center, not subsidized by new vehicle or service part sales. So, on average, the consumer comes out behind. The only merit to it that I can see if if a person cannot afford the very-high-dollar repairs that could befall him/her without insurance. But I suspect this is not the case if a person can afford the Interstate to begin with. Same could probably be said about collision or comprehensive (not not liability) insurance on a vehicle.

Hi

If you sit down with your insurance agent, you may find that the cost of this or that policy changes a bit as you increase the deductible. If indeed you can cover that "gap" in an emergency, you likely will come out ahead. As always, you need to check the actual numbers on your policies to see if that's true in your case.

Bob

[CBWELL]

Dealerships love to sell you the "Extended Warranty", because, the Dealership gets 50% or more of the selling price!! It's the easiest money they make. This is right from the mouth of a good friend that owns a car dealership. You negotiate the best price you can and then give a bunch of money for nothing. They love it!! Just my .02 worth.