RV Extended Warranty vs RV Insurance: What Is Best for Your RV?

n light of the ongoing COVID-19 pandemic, recreational vehicles are fast becoming a popular choice for vacations and family trips. As many states in the US roll back restrictions, nearly 46 million Americans plan to take an RV road trip in the next 12 months, 51% of those saying that current health concerns increased their interest in RV camping.  

While RVs offer comfortable and safe travel, they do come with a few problems of their own. Most RV owners have to deal with common RV problems like engine trouble, water pump breakdowns, broken windows and roofs, and plumbing issues. These unplanned RV repairs can take your vacation budget for a toss. Fortunately, you can save yourself from this burden with two options, an RV extended warranty, and RV insurance.

Let’s see which is the better choice for you. 

1. What Are RV Extended Warranties?

 A recreational vehicle extended warranty covers the repair costs for mechanical and electrical breakdowns. It usually covers components like axles, engine, and RV transmission. But some companies may also cover RV towing coverage at varying price points. You can choose the coverage depending on your needs.

There are two types of RV extended warranties, Exclusionary and Inclusionary. The exclusionary policy covers everything on your RV except for the items specifically not listed in the contract. It is often considered the best RV extended warranty because it offers comprehensive coverage.

An inclusionary policy, on the other hand, covers only the items listed in your contract. So, it offers relatively limited coverage. The cost of extended warranties varies greatly depending on the type of RV, year and mileage, make or model, and usage (recreational or full-time residence). 

Coverage level and length (time) will also determine the cost of your policy. That’s why the exclusionary policy is often more expensive. Similarly, motorhomes typically need expensive coverage because the mechanical components and appliances fit into one unit. 

Moreover, waiting to buy a recreational vehicle warrantyuntil the original manufacturer’s coverage expires will cost you more. It is better to get the policy before the original RV warranty expires.

2. What is RV Insurance?

 RV insurance protects you from expensive RV repairs and medical costs in the event of an accident. Depending on your coverage, your policy can cover bodily injuries or property damages to others as well as your own vehicle. Most RV insurance companies offer coverage options such as collision, comprehensive, uninsured or underinsured motorist, and more. 

  • Collision: This option covers damages to vehicles and property due to accidents. It is usually no-fault coverage.
  • Uninsured/Underinsured Motorist: This coverage protects you against uninsured or underinsured drivers.  
  • Comprehensive: This coverage can protect you from theft, vandalism, windshield damage, fire, floods, storms, and even collisions or accidents involving animals.
  • Medical Costs: This coverage pays for the medical costs for you and your passengers if involved in an accident. It can also cover the medical bills for others if you opt for the coverage. 

The RV insurance cost will depend on your coverage size, how you use your vehicle, and the make and model of your RV, among other things. Usually, the more extensive your coverage is, the higher premium you will have to pay.

Likewise, recreational vehicles used as full-time residences will attract a higher premium. You will also need separate liability coverage for motorhomes. There may be no need for additional liability coverage for travel trailers. If the vehicle towing the trailer is insured, it will cover the liability for the trailer as well. But, check with your insurance provider first. 

3. Pros and Cons of Extended Warranties 

 The most significant advantage of an RV extended warranty is peace of mind. As most mechanical failures are technical, they need to be repaired by an expert or dealership mechanic. An extended warranty can protect you from these costly repairs, which could otherwise drain your bank account.

Another important benefit is resale value. The prospective buyers would prefer to buy an RV in excellent condition. And a recreational vehicle extended warranty is a sign that your RV is well-maintained. If your extended warranty is transferable, it may help you fetch a better resale value.

Although you should purchase an extended warranty for RV, there are a few downsides that you should know. For starters, the extended warranty policy will not cover regular maintenance items and pre-existing defects. It will not cover rust, corrosion, and dents, or poorly maintained RVs. Moreover, It can’t protect you against damages caused by accidents, natural disasters like floods and fires, and vandalism or theft.

4. Pros and Cons of RV Insurance

 RV insurance intends to protect you from accidents and property damages. Depending on your policy, your RV insurance provider will cover the cost of medical bills for injured passengers in your vehicle and other people involved in the accident. They will also pay for physical damages resulting from an accident.

Most importantly, insurance will protect you against floods, fires, falling objects, theft, and vandalism. And you can get this protection even when your RV is not on the road. In short, RV insurance will protect all valuables on your RV, usually ranging from appliances to windows and roofs.

The major con is the RV insurance cost. Typically, expensive recreational vehicles will need more coverage and a higher premium. The coverage will also be expensive if your location has more risk of natural disasters or a high crime rate. 

5. Whats the Better Choice?

 Ideally, it would be best if you had both RV insurance and an RV extended warranty to ensure complete protection for your recreational vehicle. However, the extended warranty will protect you from mechanical failures, which are more common than you think.  

Nearly 30% of RVs will have a major breakdown within two years on the road. The labor cost can be anywhere between $120 to $190. And that doesn’t include the cost of replacements, which can easily run you a few thousand dollars.

A recreational vehicle warranty is the best way to mitigate these unexpected expenses. And more importantly, it can prevent your trip from spoiling. However, whether you want to buy an extended warranty or insurance, make sure it covers everything you need. 

If you are interested in buying an extended warranty or insurance for your RV, RVing Solutions can help. We specialize in providing RV extended warranties and insurance for RVs with a wide range of coverage options. Reach out to us for a free quote today!

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