As the Title Says Extended Warranties, Are they worth it. Well that depends on a lot of factors. What follows is a few case histories of my own personal experience with them and why I will probably never buy another Extended Warranty. I would have been lots of money ahead if I would have put the money for the cost of the warranty in the bank. I will let you be the judge.
I bought a 2 year old 5th Wheel While traveling and in Texas. I traded in the Old 5th wheel because of some problems. The 5th wheel that I bought was like new, but had been sitting on the Dealers lot for over a year. So I bought a Extended warranty to cover the axles and the appliances for 5 years. Cost was $2,500 4 months later I traded it off for a bigger 5th wheel. I contacted the selling dealer in Texas and the Warranty company for a refund of the unused portion of the warranty. Most extended warranties are prorated. Well I am supposed to get around $2,000 Back. I was assured that after a couple of weeks I would get a check. Several phone calls and was told it would be 6 to 8 weeks. It has now been 10 weeks and still no check. I am going to call them again today. Will post the results at a later date.
5 year old Motor Home Used 38,000 Miles on it. 4 year 70,000 Mile Extended Warranty $3,500 $100 Deductable unless taken to a route 66 Dealer then $33 Deductible. This was the only warranty that was worth it and almost paid for its self. In the first 60 days the fuel pump went out. Cost $1,100 for repairs. in the next 3 years I had Generator Repairs, Air Cond, Electrical, inverter, Leveling Jacks, and a few other repairs at a cost of $1,900. My out of pocket for the 4 years including the cost of the warranty was around $600 Depending on how you look at it. It was not a bad deal for the Peace of Mind it afforded My wife and myself.
I bought a 10 year old Motor Home with 45000 miles on it. It was serviced by the selling dealer and new brakes and Safety checked. Everything was working when it was delivered. I bought a extended warranty 5 years and 70,000 Miles for $4,500 4 months later I used the warranty to get the Fridge Fixed. Total repairs $179 with $100 deductable The warranty company paid $79. A year later I sold the Motor Home and cashed in the remainder of the Extended Warranty. I got back $2,009 dollars after waiting almost 6 months and numerous phone calls and letters to the Extended warranty Company. $2,500 out of pocket for a return of $79. (Not a Very Good Deal)
Brand New Honda Van. Bought it right when it was delivered to the Dealer. I did not want an Extended Warranty on a new product. I figure if the Factory warranty was not good enough or the product was that bad then why buy it to begin with. Well the Sales man scared the Dear Wife and said that the electronic module was only factory warranted for 1 year and cost $1,700 to Replace. So against my better judgement We got the Extended Warranty, 70,000 Miles 7 years for $2,000 with $100 deductible. about 3 years later the powered rear wing windows. Stopped working. Repairs were $495 with $100 deductible Warranty paid $395. 2 weeks over the mileage 7,382 Miles on Speedometer, and 5 years old, The drivers side window regulator had to be replaced. Not covered by warranty over mileage. $1,600 out of pocket. (Not a good deal for me).
Used Cadillac 3 years old with the Notorious HT 4100 Aluminum Block Engine and 51,000 Miles. Bought Extended Warranty 100,000 Miles and 5 years for $500 Deductible for $1,178. 1 year later the Engine started to Over Heat. Called wrecker and had it towed to Dealer. Dealer said that Camshaft had spun bearing out and engine had a blown head gasket causing engine to over heat. Cost to repair $5,487 for a new short block. Extended Warranty Company Out of Business. The Bonding Company would not pay claim because engine had been overheated. I got a lawyer and he said that all of these extended warranty companies have all kinds of loop holes to get out of a big claim. He also said that it would not be worth fighting because even if I won the attorney fee’s would be more than what is recovered. Most of these contracts have a Lawyer clause in them. I did manage to get the Bonding company to pay $1,100 of the bill for the camshaft damage. Out of pocket $3,500. (Not a good deal at all).