When it comes to RV extended warranties, costs can vary widely, from roughly $1,000 for a year or two of coverage for a travel trailer to $20,000 for a ten-year premium plan for a diesel motorhome.
The price depends on a number of factors, and because not every warranty offers the same coverage, benefits, or term length, it can be difficult to determine which company is cheapest overall. Eight key factors affect cost:
1. Make and Model
Top-of-the-line models feature more expensive appliances and parts and can also incur higher labor bills, making them more expensive to cover.
2. RV Type
Motorhomes require more coverage than travel trailers and toy haulers, and so cost more.
3. Mileage and Age
The longer they are in service, the more likely they are to break down, and the more expensive they are to cover.
4. Coverage Type
Exclusionary plans cost more than inclusionary plans, and coach-only coverage will be cheaper than coverage that includes the automotive components.
5. Coverage Term Length
Longer plans cost more overall but feature a lower annual cost. The shortest term length available is one year, and such a short plan is not commonly offered for all RV types. The longest term length that most companies offer is seven years.
The comparing one-year and seven-year plans, the difference in price per year of coverage is often hundreds of dollars.
6. Additional Coverage
Additional coverage for things like consequential loss, full-time use, or commercial use add to the price.
7. Where You Buy
Generally, coverage is more expensive when it is purchased from the dealership at the time of sale. RV owners can save money by purchasing directly from an extended warranty company.
8. Pay Structure
Most companies offer a price reduction for plans that are paid in full at the beginning of the term. Another popular option is a payment plan, which usually requires a down payment. Monthly payment plans without a down payment make it easy to get started but usually cost more per year.
If financing the warranty through the dealership, be aware that the balance will earn interest. Depending on the length of the loan, the interest could amount to several thousand dollars of additional cost to the RV owner.
