Extended Warranty

Never heard of it. That's a dealer thing.

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If you use the search function, there have been dozens of threads on this (they are not extended "warranties," they are insurance policies). Grand Design does not offer one.

My wife found a very good description of extended service plans a while back (as stated, they are not warranties, but rather insurance policies with lots of fine print). They are another form of legalized gambling. The company is betting that nothing breaks that would cause them to pay out more than you paid for the policy; you're betting it will. As in all forms of legalized gambling, the house usually wins. Otherwise, these companies wouldn't be in business or make a profit.

Dave Ramsey and Clark Howard have commented on these plans many times, too. The standard seems to be that 80% of extended service plan revenue goes toward commissions and marketing. Only 20% goes toward paying for actual repairs, which means most people are getting a really bad deal. We prefer to set money aside regularly (earning interest) and pay for repairs as they come up.

Rob
 
they are not extended "warranties," they are insurance policies
IMO this bears repeating, over and over, so people understand what warranties really are. Even the original factory warranty is just an insurance policy, but the premium is hidden in the purchase price. I don't like to make blanket statements that extended plans aren't worthwhile, provided you know what you're buying. Just like any insurance plan, you are purchasing a little peace-of-mind that you are shielded from large out-of-pocket surprise expenses. The value of the policy is equal to whatever that peace of mind is worth to you. As with all insurance policies, the expected payout is for certain less than the total of the premiums.

I personally only do insurance policies on high-value items where I don't want to risk absorbing the total loss (e.g. my house, my life, my hands [hey, I write software, my hands are valuable :)], or my RV, maybe my car). On average you always come out ahead by not spending money on insurance, but some people will come out way behind. YMMV.
 
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