Are Extended RV Service Plans Right For You?

Someone e-mailed me recently and wanted to knowagreements. If you don't understand something, ask
what my thoughts were on extended service plansto have it explained to you. You will also want to
for RV's. I replied that I thought extended servicemake sure that the company offering the plan is
plans offered great protection as long as youreputable and will be acknowledged by other RV
understand a little about them and how they work.dealers and RV repair centers. It should offer
When you are doing the finance paperwork on yourcoverage in all of the USA and/or Canada. If you plan
RV most RV dealers will offer you some type ofto travel outside your country of origin make sure
extended service plan that you can purchase. Beforethe coverage is still available. You will also want to
you agree to purchase a plan make sure youcheck on how a claim is paid. I have seen cases
understand all of your options. You should not bewhere you pay for the repairs up front and then get
pressured into buying an extended service contract.reimbursed when you send in a copy of the service
If you buy a new RV and purchase an extendedorder or repair bill. If the repair facility agrees to file
service plan that covers both the coach and thethe claim most plans only require that you call for
chassis, the plan would take over the day after all ofapproval before any repairs are made. A good plan
the original factory warranties expire. For example, ifshould be transferable if you sell your RV, it should
you purchase a seven year extended service planbe renewable so you can extend the coverage and it
and the motorhome has a one year warranty on theshould offer a pro rated refund if coverage is
coach and a three year warranty on the chassis theterminated during the term of the contract.
service plan would be in affect for six years afterPricing for these plans will be based on several
the coach warranty expires and for four additionalfactors. I have already mentioned some; the length
years after the chassis warranty expires. Theof the plan, the extent of coverage, if the RV is
advantage of purchasing the plan when the RV isnew or used, the age and mileage, and the
new is that it will be less expensive for a new unit asdeductible. The deductible can range from $0 to over
opposed to a used unit. Most plans can be purchased$200. This is not bad considering a $500 or $1,000
anytime up until the factory warranties expire if youaverage repair bill if an appliance fails. Some items on
don't purchase the plan when you initially buy the RV.the RV, like slide outs and entertainment systems
Some extended service plans will offer coverage onmay not be covered unless you pay an additional
used units that meet the plans criteria if yousurcharge. Make sure you understand what these
purchase the plan when you buy the used unit.items are and if you want them to be covered by
Coverage on a used unit will cost more. It is usuallythe plan.
based on the age of the unit and the mileage if it's aDo not be pressured into purchasing a plan. Ask your
motorized RV.RV dealer to give you a price on the plan they have
I mentioned if you buy coverage for the coach andto offer and then you can shop around and compare
the chassis. That's because most of these servicepricing for extended service plans. Just make sure
plans offer different levels of coverage. You maythe plans you are comparing offer similar coverage.
only want additional coverage on the coach portionResearch and know in advance what you plan to do
or on the chassis portion. In addition to differentabout an extended service plan before you go in to
levels of coverage, plans are available for differentsign the finance paperwork.
terms.Happy Camping!
Make sure you read and understand the extent andMark
time period of coverage before signing anyCopyright 2007 by Mark J.