Why Mechanical Breakdown Insurance is Better Than A Warranty

8/6/2014 – Good Sam Extended Service Plan

When purchasing a RV you want to make sure you, your family and your RV are protected. You need the peace of mind that should something go wrong and you breakdown, someone is there to help you. There are many reasons why purchasing mechanical breakdown insurance, to pay for your repairs, is a better alternative than a warranty.

What is a Manufacturer's RV Warranty?

A manufacturer's warranty guarantees that the manufacturer will fix repairs that stem from defective materials or improper manufacturing. Usually every RV comes with multiple warranties. Each individual component, like the refrigerator, can have its own specific warranty. Motorhomes, for example, typically have two or more separate warranties—one for the coach and one or more for the chassis components.

What is an Extended Warranty?

An extended warranty, also known as a service contract or extended service contract, is sold separately by the dealership and covers components after the original manufacturer's warranty expires. It can be backed by the Dealer or by the plan administrator.

What is Mechanical Breakdown Insurance?

Good Sam Extended Service Plan is not an RV warranty program; it is insurance against a mechanical breakdown. Similar to home owner's insurance and automobile accident insurance, mechanical breakdown insurance is a policy written to cover parts, labor and repairs to vehicles.

Good Sam Extended Service Plan is strictly regulated and fully insured by an A+ rated underwriter. It complies with stringent insurance regulations. For vehicles still with manufacturer's warranty remaining, our Plan seamlessly dovetails with the original manufacturer's warranty. When each of the original manufacturer's warranties expires, you can be assured that you have continuous coverage. Also, with Good Sam Extended Service Plan, you get travel benefits from day one (these benefits help pay for rental car/ hotel/ dining expenses when your RV is being repaired in the shop).

Unlike an extended warranty, mechanical breakdown insurance is administered by an underwriter so you know they will be there to pay your repair bills. Should an extended warranty company go out of business they may not be there to pay your repairs. Mechanical breakdown insurance is available to both new and used RVs. It is a policy customers can afford. Customers choose their deductible and can make payments on a monthly, quarterly, or annual basis. Rates can be locked in for 3-7 years on new policies depending on the vehicle coverage. Mechanical breakdown insurance also offers the customer a single year option if they choose.

Some extended warranties do not allow the customer the freedom to choose the RV repair center. With mechanical breakdown insurance you can take your rig to any repair facility or call for a referral to one of Good Sam’s preferred providers.

What to review when purchasing an Extended Warranty or Mechanical Breakdown Insurance?

  • Cost of the service plan
  • Term limits
  • Exclusions (unless expressed explicitly, an item is not covered)
  • Pre-approval process—is it realistic to follow authorization requirements when you're on the road?
  • Overlap of original warranty
  • Deductibles and increases in charges for usage
  • Transfer or cancellation fees if you sell your RV
  • Restrictions on service locations
  • Timeframe of eligibility to purchase service plan
  • Who is the underwriter, if anyone?

If you are in the market for protection against breakdowns make sure to receive a FREE quote from Good Sam Extended Service Plan today. Good Sam ESP will be there when you need your repair bills paid. Ensure peace of mind and enroll today.

All program benefits are subject to the limitations set forth in the current terms and conditions. ©2014