The demand for RVs has significantly spiked over the last decade, more so over the past year. According to the Recreational Vehicle Industry Association, RV ownership has increased over 62% over the previous 20 years, with a record 11.2 million households owning a unit. North American RV retail sales grew by 4.5% to over 424,400 deliveries in 2020. The growth is expected to spill over to 2021, with July 2021 shipments totaling over 44,537.
Is an RV Extended Warranty Worth It?
An expensive investment such as a new RV may require warranties to cover the costly repairs. It’s nearly impossible to tell when your vehicle will experience a mechanical failure. Industry statistics indicate 30% of all RVs require a major repair by their second year on the road, with nearly all by the eighth. Standard warranties may have tight restrictions and longer repair periods.
With the average RV repair gobbling over $300 per hour, extended RV warranties provide an excellent alternative to minimizing your out-of-pocket costs. The increasingly sophisticated technology in the mechanics of recreational vehicles calls for more expensive repairs. Periodic payments in small amounts allow you to pass the substantial repair costs to the RV extended warranty company if and when you experience a mechanical failure.
Picking the Best RV Extended Warranty
How do you pick the right RV extended warranty company for your vehicle? Here are tips to help you choose the best provider.
1. Research the Contract Issuer
You may need to conduct your due diligence on the RV extended warranty company. It’s the ultimate responsibility of the company to ensure that your claims and repairs are processed as quickly as possible. How long has the company been in business? Longevity may increase your confidence in the RV extended warranties provider still operating while you need significant repairs on your vehicle. Do they have a dedicated customer service department? Do they have national coverage? What do past clients say about their services? Finding answers to these questions can ensure that you find the right fit for you.
2. Learn About Their Insurance Carrier
RV owners may need to watch out for “risk retention groups,” which face less regulatory oversight that protects policyholders. Avoid burning your fingers by picking an RV extended warranty company whose policies are backed by reputable insurance companies. You can use rating agencies such as AM Best that rank insurers in different rating categories, such as A+, A. or B-. Ensuring your warranty is supported by a good and financially stable carrier confirms that the firm will be present to pay for your expensive repairs when you need them.
3. Inquire About Coverage Options
The most critical factor to keep in mind is understanding the RV extended warranty coverage you need. Inquire about what the different policies and benefits entail before signing the contract. Consider the best warranty policy as an investment in your RV’s value and performance. Inquire about the monthly payments that you have to make for your preferred coverage.
4. Examine the Fine Print
It’s understandable that you want to be assured your investments are safe. However, always read the fine print before making any hasty decisions. Review the facts and terms of the contract to understand what is covered or not covered by the plan. Ample time should be invested in this research, as it ensures you have a better understanding of your coverage levels, costs, and service options.
5. Consider Your Budget
Your budget is critical when choosing an RV extended warranty company. Think about how long you plan to own your RV and make sure the monthly insurance payment will not put a strain on your finances. Get a quote to ensure the extended warranty is a good fit for your budget.
RV extended warranties are necessary for avid RVers who need to keep their vehicles in top condition as they hit the road. To discuss your coverage options with a trusted RV extended warranty company, reach out to No Repair Cost.