Benefits of an Extended Service Agreement
If you’re over 30 and have been at a gathering around a firepit, a dinner party, or even just social chat at work, you’ve probably heard someone say how they dream of buying an RV and traveling around the country. It’s that dream of freedom and the open road, of being immersed in nature and of experiencing various landscapes. But the transition from dream to reality is an expensive one, with the average costs of RVs running from around $35,000 for the most basic tow trailers to over $300,000 for Class A motorhomes. With that kind of investment in your dream, who wouldn’t want to protect it?
New RVs may come with warranties, but they will be limited by types of coverage, length of time, and/or distance traveled. An extended service agreement, which you may also hear called an extended warranty is additional coverage that lasts as long as you keep the contract. As you ask yourself why you should pay for extended service, consider that RVs are not precision engineered by robots, so quality can vary greatly even within the same make and model. In fact, an examination of RV warranty claims records shows that “at least 3 out of 10 RVs will require a major repair in their second year on the road. By the 5th year, that leaps up to 8 out of 10.” That means the likelihood of a repair is high.
According to most experts, the average RV repair, including cost of parts and labor, runs around $300 per hour. With repairs ranging in average cost from $300 to as much as $30,000, it quickly becomes clear why having extended coverage for your vehicle is important. Here are just a few of the benefits of having an extended service agreement for your RV:
- Peace of mind: Considering that it’s likely you will encounter a repair and that the repair may be expensive. It’s good to know that you have coverage that will keep you on the road and financially protected.
- Coverage:While manufacturer warranties may be limited in coverage, extended service agreements are designed to cover mechanical and electrical breakdowns as well as things like repair costs of slide-outs, furnaces, air conditioners, water heaters, appliances, engines, and more. An exclusionary policy will cover anything not specifically excluded from coverage on the policy. You can also buy supplementary coverage for excluded items.
- Budget control: Rather than having to lay out large cash sums for expensive repairs, you pay a monthly premium for an extended service contract so that those repairs don’t drain your accounts when the time comes.
- A hedge against rising prices: Good extended service plans pay existing retail prices for replacement of things like appliances. That means your monthly payment for the contract remains the same, but your protection for replacement costs rises with inflation.
- Flexibility: A manufacturer’s warranty may limit your repairs to certain dealerships, but an extended service contract allows you to seek repairs wherever you are.
Ivan Young is a writer from Happy Writers, Co. in partnership with online faxing service, Faxage.