Extended Warranties?

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Extended Warranties for your RV

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We spent about six months, trying to get a handle on extended warranties. We wanted to know if they are worth buying. Should they be worth buying, what kinds of warranties are out there, and lastly which ones would yield the best value for the dollar spent.  It is no wonder it took us six months to decide on a warranty company.

We purchased our RV somewhere near its sixth birthday. We purchased a 40 foot diesel pusher;  a 2006 Holiday Rambler Ambassador 40 PLQ. Before we purchased the RV, we had the rig inspected by Cummins Northwest. They did a thorough mechanical check yielding no defects in the drive train components. We also did a thorough inspection of the RV for structural defects. Some defects were found and the dealer Paul Everett RV immediately took care of them. When we took delivery of the RV, we knew we had an RV with a clean bill of health.

On signing we were offered a 4 year warranty for a fee of $8,000.00. The dealer, was not trying to rip us off.  That is what one can expect from any dealer selling warranties on an RV of this type and vintage. The down payment on the RV was not chump change for us, so we had to turn down the warranty at that time. We were also very unsure of the value of such a warranty. At $8,000 we felt we could self insure. It is our general notion, that if extended warranties are to generate a profit to the underwriting company, the statistical chance that we would ever incur an expense large enough to justify the warranty would be low.

Once we were home with the RV, we got to thinking about all of the pieces that propel our house down the road. There is a Cummins 330 diesel engine, an Allison transmission, and a whole bunch of stuff that we have no idea what is, but we are sure is expensive. I looked up the cost of an engine or transmission replacement. The cost is astounding. With labor I was quoted $35,000 for the transmission, and $40,000 for the engine. The chances of a major overhaul being needed on either of these is low, but what if you are somewhere between Aberdeen Texas and Tuscon and some part dies and destroys the engine? Do you have $35,000 in cash to pay the bill? Or will you suddenly become a resident of the Southern desert?

When posed with these questions we decided we were not rich enough to self insure. We were also not rich enough to fork out $8,000 cash to our dealer.  Never the less, we asked for a coverage book and sample contract from our dealer. When we read these we still did not get $8,000 worth of warm fuzziness.  We contacted about a dozen different warranty companies, and most would not even let us see a copy of the contract before signing it. We did however save a quote from Acc Warranty, and one from Good Sam Club.

Several months passed by and I was contemplating the heat pumps, and wondering how long they would hold up. Athena began wondering what the cost of repairing the refrigerator water heater, and other appliance might be. We found heat pumps to for this RV to be about $1500 each, the Refrigerator would be about $6000 mostly due to labor cost. No one of these failing would justify the cost of that warranty, but the possibility of engine and transmission failure was keeping me awake at night.

In our travels we have seen a lot of RV’s on the side of the freeway with various mechanical issues, keeping the warranty in the forefront of our mind. One day a friend of ours was fortunately close to home when his Cummins engine in his pickup lost a cylinder while he was pulling his 5th wheel. He took it into the shop and they found a fuel injector had blown apart and fallen into the cylinder. This broken injector completely destroyed the engine. A new engine was $17,000 with labor for his Dodge truck. We decided we had to get a warranty. It does not matter what the statistics say, when an event like this happens to you, you’re in trouble! Unless you have the cash resources to deal with it.

Two Kinds of Extended Warranties

There are two kinds of extended warranties, the one to buy, and all the others. We began looking at Warranties and found that the exclusionary (covers all part on the RV not listed in the exclusions list of the contract.)  policy is the only one to buyThe exclusionary policy needs to be one with the fewest number of things you can accidentally do, or accidentally not do; to void your warranty.  The last critical component you need is Non Covered Part, and Covered part as cause of loss as a rider on the policy. Here is why, using my friends truck from above we rightly note that fuel injectors are a part of the engine that are considered a consumable.

Fuel injectors are rarely if ever covered by a warranty. Sounds fair right? Maybe, Maybe not!  Lets say the engine issue above occurred on truck covered by a top notch exclusionary extended warranty. One would assume that since the engine was destroyed the warranty would provide an engine, and the customer, would pay for the fuel injector.  In the days of good ol’ boy business done on a hand shake, that would be the correct assumption; today, not so. In this situation the customer pays for the engine, and the injector even though he spent the money on the extended warranty. The customer would only have had to pay for the injector if he would have purchased a warranty with the Non covered part and covered part option. It is sad, that as customers we have to be so careful when we buy a policy. Why would any policy fail to cover damage caused by other parts? covered or not?

The main thing you need to make sure you have, is an exclusionary policy where all the covered parts are actually covered irregardless of the cause.  Our research only turned up one such company “Wholesale Warranties”  If you stopped reading this article, clicked on the image below, and asked Dave Scott at Wholesale Warranties for an exclusionary warranty with the covered and non covered part option, he would get you the best possible warranty.
Wholesale Warranties
Click the link above and get your quote Now.

We really believe that a warranty that only covers certain parts or does not cover parts damaged by another part is not worth the paper it is written on. The actuarial folks have figured out the little or no risk parts to cover, and have insulated themselves from ever paying out in the event of a break down. For us it had to be a fully covered warranty or none at all.  We narrowed our search down to three companies:

Acc Warranty – came in at about $4,000 for four years. They have a distinct advantage of stocking most of the parts one might need on the shelf in house, and claim to be able to overnight nearly any part one might need. At the time we spoke with them, they also claimed to have technicians that will walk a person through installing a part himself in the event there is no service center near by. They also will send a mobile RV repair unit out in the event that one is needed. The downside was that it was a 100% cash up front contract, and the real biggie for me was they were not willing to provide a clear document showing what is covered and what is not.

Good Sam Club ESP – We know people who purchased their standard service plan, and like we said earlier, it was not worth the cost of the paper they wrote it on. They did not cover a single repair. They always found a way out. He eventually got a portion of his money refunded and went elsewhere.  They have an exclusionary plan on their website that you can look at. We know folks who bought this plan and are very happy with it. Our biggest knock against it, is that it is expensive.  The advantage over ACC Warranty, is one can by this plan one year at a time and make monthly payments. They wanted $1,500 per year when we got the quote from them, and the cost can go up each year. The monthly payment option was a real selling point to us, as we would have been forced to dip into our retirement funds to pay the full amount.

Wholesale Warranties – Upon a recommendation from a friend, we called David Scott at Wholesale Warranties. David, was able to take our entire situation into account and shop the market on our behalf. In about a day he came back with a contract that would have covered everything but the fiberglass, and structure of the RV. The plan even had a rider to cover tire failure.  This was a Cadillac plan coming in at right about $4000.00. Which is half of what the RV dealers were selling lower quality contracts for. When we explained to Dave that we did not have the $4,000 and we were looking at the Good Sam Club warranty because of the their payment plans, his company provided us that service to with a very reasonable down payment.  Wholesale Warranties is our first choice.

What you need to Know about all Extended Warranties

We know of no extended warranty on the market that will cover structural and cosmetic issues. Today, RV’s are typically made of fiberglass and may even be fully painted like a car. The fiberglass exterior is fixed to a plywood paneling that is attached to foam, then the aluminum structure. None of this structure is covered, aluminum can break welds, fiberglass can chip and blister, floors can rot out. To the best of our knowledge none of this is ever covered by any extended warranty company. Extended warranties really only cover mechanical components such as engines, transmissions, and the appliances. These it will only cover if you have receipts proving you maintained all these things according to the schedule in the maintenance manual. Everything else, we RV owners are on the hook for. For us the extended warranty allows us to sleep at night knowing that the expensive things like the engine and transmission will be covered in the event of their premature demise.

One last note, if you are getting the warranty an out of warranty RV, they will likely require an inspection by a service department of their choice. They attempt to make it as convenient as possible,but it is never fun packing up the RV and bringing it in to a service center.  We had to get out inspection within 30 days of the contract signing date, for some unknown reason to us. It took them up to the last few days to find a dealer, and the person scheduling us became very persnickety  so much so I nearly canceled the contract. When working with them, make sure a solid plan is in place to get the inspection done if need be. In the end our RV passed with no issues at all, but had they found any, our contract gave us 10 days to get them corrected which when working with RV’s, and RV service center the time limit is less than reasonable.  Even with the cranky lady doing the scheduling we would still recommend you go to them today.

 

 Sample Extended Warranty contract

This is a sample of what a solid service contract looks like, but it is only a sample. What ever you choose to buy, you must read for your self.  Every company  is different, and every contract is different. If you are buying from the is company you want the elite package.

 

II. SCHEDULE OF COVERAGES

We will pay or reimburse You for Reasonable Costs to repair or replace any Breakdown of a mechanical part or component (Covered Part(s)) listed below
based on the coverage purchased, less any Deductible(s) You are required to pay. The amount authorized by the Administrator will be paid to the repair
facility or directly to you, whichever the Administrator deems appropriate. Replacement parts may be new, remanufactured, non-OEM or like-kind-and
quality (used). Reimbursement is based on the Manufacturer’s Suggested Retail Price (MSRP) for parts and labor will be based on a nationally recognized
labor manual.

COACH COVERAGE

1. Hot Water Heater: Burner Assembly, Tank, Thermostat, Fittings, Control Panel Switches, Thermocouple, Gas Valve, Electronic Ignition
Assembly, Printed Circuit Boards.
2. Waste System: Shower, Toilet (except Electrical Toilets), Sinks, Holding Tanks, Vacuum Breaker, Gate Valves, Fittings and Connections.
3. Fresh Water System: Water Pump, Compressor, Water Tanks, Water Lines, Traps, Fittings, Faucets.
4. Central/Roof AC: Central Air or Roof Mounted (110V) Compressor, Evaporator, Capacitors, Relays, Thermostat, Condenser, Heat Strips,
Control Panel, Switches, Receiver Dryer, Blower Motor, Fan Motor, Bathroom Vent Motor, High/Low Cut-Off Switch, Pressure Cycling Switch,
Electronic Module.
5. Range and Ovens: Burner Assembly, Thermostat, Thermocouple, Burner Valve, Microwave Oven, Power Hood, Printed Circuit Boards.
6. L.P. Gas System: Regulators, Gas Bottles, Mounting Brackets, Pigtails, Automatic Shut-Off System, L/P Lines, Fittings, Gauges.
7. Heating System: Furnace, Igniter, Heat Pump, Burner Assembly, Thermocouple, Gas Valve, Thermostat, Blower Motor, Fans, Printed Circuit
Boards.
8. Refrigerator: Thermostat, Thermocouple, Cooling Unit Compressor and Evaporator, Condenser, Fans, Burner Assembly, Igniter, Printed Circuit
Boards.
9. Auxiliary Power plant/Generator: All internally lubricated parts of the Power plant Engine, plus the Starter and Switches, Generator Assembly
and Head (if damaged as a result of a Breakdown of a covered internally lubricated part), Power Converters, Printed Circuit Boards, Inverter,
Voltage Regulator Gauges.
PREMIUM COVERAGE
1. Engine (Including Diesels): Cylinder Block, Cylinder Head(s) and all internal lubricated parts contained within the engine including: Pistons,
Piston Rings, Connecting Rod Bearings, Crankshaft, Crankshaft Main Bearings, Camshaft, Camshaft Bearings, Cam Followers, Timing Chain or
Belt, Timing Gears, Guides, Timing Chain or Timing Belt Tensioners, Rocker Arms, Rocker Shafts, Rocker Bushings, Cylinder Head Valves,
Valve Guides, Valve Lifters, Valve Springs, Valve Seals, Valve Retainers, Valve Seats, Push Rods, Water Pump, Oil Pump and Oil Pump
Housing, Vacuum Pump, Harmonic Balancer, Oil Pan, Timing Chain Cover, Intake and Exhaust Manifold, Valve Covers, Engine Mounts, Engine
Torque Struts, Dipstick & Filler Tube, Pulleys.
2. Turbocharger/Supercharger (Factory Installed Only): Turbocharger/Supercharger Housing and all Internal Parts.
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3. Transmission (Automatic or Standard): Transmission Case and all Internal Parts plus: Torque Converter, Flywheel/Flex Plate, Vacuum
Modulator, Electronic Shift Control Unit and Solenoids, Transmission Cooler, Transmission Mounts, Oil Pan, Cooler Lines, Dipstick and Filler
Tube.
4. Drive Axle (Front and Rear): Differential Case, Transaxle Case, Final Drive Case and all Internal Parts thereof, Locking Hubs, Drive
Axles/Shafts, Universal Joints, Constant Velocity Joints, Bearings, Supports and Retainers.
5. Steering: Power Steering Pump, Steering Gear Box/Housing, All Internal Parts contained within the Steering Box, Rack and Pinion Gear Power
Cylinder, Steering Knuckles, Pitman Arm, Idler Arm, Tie Rod/Ends and Drag Link, Steering Dampener, Upper and Lower Steering Column Shafts
and Couplings, Control Valve and Cylinder, Tilt Telescoping Steering Assembly, Center Link, Cooler & Cooler Lines.
6. Brake: Master Cylinder, Power Brake Cylinder, Vacuum Assist Booster, Hydro Boost, Disc Brake Caliper, Wheel Cylinders, Brake Hydraulic Lines
and Fittings, Backing Plates, Springs, Clips and Actuator, and Air Brake Compressor, Diaphragm, Treadle Disc, Caliper, Equalizer Valve,
Combination Valve, Brake Pedal Assembly, Parking Brake and Linkages/Cables, Compensating Valve and Slack Adjusters. The following ABS
parts are also covered: Electronic Control Module, Wheel Speed Sensors, Hydraulic Pump/Motor Assembly, Pressure Modulator Valve/Isolation
Dump Valve, ABS Relay, Accumulator.
7. Electrical: Alternator, Voltage Regulator, Starter Motor, Starter Solenoid and Starter Drive, Engine Compartment Wiring Harness, Relays,
Computerized Timing Control Unit, Electronic Ignition Module, Crank Angle Sensor, Knock Sensor, Ignition Switch, Ignition Switch Lock Cylinder,
Front and Rear Window Wiper Motor and P.C. Board, Washer Pump and Switch, Stop Lamp Switch, Headlamp Switch, Turn Signal Switch,
Heater/A.C. Blower Speed Switch, Manual Heater/A.C. Control Head, Front and Rear Defroster, Dash Board Clock, Dial Battery Paralleling
Switch, Back-Up Alarm, Gauges, Horns, Power Door Motor, Relays, also covered are Electric Step Mechanical/Hydraulic Components.
8. Air Conditioner: Condenser, Compressor, Compressor Clutch & Coils, Evaporator, Expansion & Suction Valves, P.C. Boards, Idler Pulley and
Idler Pulley Bearing, High/Low Compressor Cut-Off Switch, POA Valve, Pressure Cycling Switch, Accumulator/Receiver Dryer, Orifice Tube.
9. Front and Rear Suspension: Upper and Lower Control Arms, Control Arm Shafts and Bearings or Bushings, Upper and Lower Ball Joints, Struts
(excluding replaceable cartridges), Strut Bearing Mount/Plates, Radius Arm and Bushings, Torsion Bars and Mounts or Bushings, Stabilizer Bars,
Links and Bushings, Spindle and Spindle Support, Hub or Wheel Bearings, Coil and Leaf Springs, Air Bags, Actuators, and Air Suspension
Compressor, Air Dryer, Lines and Bags.
10. Fuel Delivery: Fuel Pump, Fuel Injection Pump, Fuel Injectors (except for wear and tear and contamination), Vacuum Pump, Fuel Pressure
Regulator, Diesel Fuel Heater, Fuel Tank, Metal Fuel Delivery Lines, Fuel Distributor, Auxiliary Tank Switch.
11. Cooling: Engine Cooling Fan/Motor and Motor Controller Module, Thermostat, Fan Clutch, Belt Tensioner, Radiator, Heater Core, Blower Motor,
Coolant Recovery Unit, Fan Shroud, Electric Block Heater.
12. Enhanced Electrical: Automatic Climate Control Programmer, Electronic Instrument Cluster, Distributor, Cruise Control Module, Transducer and
Servo, Power Window Motor and Regulator, Power Seat Motor, Awning Motor, Power Mirror Motor, Power Antenna Motor/Mast Assembly, Power
Window Switch, Cruise Control Engagement Switch, Power Seat Switch, Power Mirror Motor Switch, Rear Defogger Switch, Power Door Lock
Actuator and Switch, Fuel Injection Sensors, Electronic Mixture Control Unit and Sensors.
13. Hot Water Heater: Burner Assembly, Tank, Thermostat, Fittings, Control Panel Switches, Thermocouple, Gas Valve, Electronic Ignition
Assembly, Printed Circuit Boards.
14. Waste System: Shower, Toilet (except Electrical Toilets), Sinks, Holding Tanks, Vacuum Breaker, Gate Valves, Fittings and Connections.
15. Fresh Water System: Water Pump, Compressor, Water Tanks, Water Lines, Traps, Fittings, Faucets.
16. Central/Roof AC: Central Air or Roof Mounted (110V) Compressor, Evaporator, Capacitors, Relays, Thermostat, Condenser, Heat Strips, Control
Panel, Switches, Receiver Dryer, Blower Motor, Fan Motor, Bathroom Vent Motor, High/Low Cut-Off Switch, Pressure Cycling Switch, Electronic
Module.
17. Range and Ovens: Burner Assembly, Thermostat, Thermocouple, Burner Valve, Microwave Oven, Power Hood, Printed Circuit Boards.
18. L.P. Gas System: Regulators, Gas Bottles, Mounting Brackets, Pigtails, Automatic Shut-Off System, L/P Lines, Fittings and Connections,
Gauges.
19. Heating System: Furnace, Igniter, Heat Pump, Burner Assembly, Thermocouple, Gas Valve, Thermostat, Blower Motor, Fans, Printed Circuit
Boards.
20. Refrigerator: Thermostat, Thermocouple, Cooling Unit Compressor and Evaporator, Condenser, Fans, Burner Assembly, Igniter, Printed Circuit
Boards.
21. Auxiliary Power plant/Generator: All internally lubricated parts of the Power plant Engine, plus the Starter and Switches, Generator Assembly
and Head (if damaged as a result of a Breakdown of a covered internally lubricated part), Power Converters, Printed Circuit Boards, Inverter,
Voltage Regulator Gauges.
ELITE COVERAGE – (AKA Exclusionary coverage)
We will pay or reimburse You for Reasonable Costs to repair or replace any Breakdown of ALL MECHANICAL AND ELECTRICAL PARTS except those
listed under Section V. WHAT IS NOT COVERED, less any Deductible, in accordance with Section III. GENERAL PROVISIONS contained in this Contract.
Reimbursement amounts for replacement parts or components may be based on new, remanufactured or used parts at Our sole discretion.
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OPTIONAL COVERAGES
22. Optional Leveling System: All Mechanical, Hydraulic and Electrical Components. (Included in Elite Coverage.)
23. Optional Slide Outs: All Mechanical and Hydraulic Ram Assemblies. (Included in Elite Coverage.)
24. Optional Engine Retarder/Jake Brake: Main Throttle Control Switch, Solenoid, Linkage Butterfly Plate. (Included in Elite Coverage.)
25. Optional Deluxe Appliance Coverage: Ice Maker, Trash Compactor, Central Vacuum Cleaner System, Washer/ Dryer, Dishwasher, Rear View
Monitor System, Built-in Food Processor, Built-In Coffeemaker, In-sink Disposal, Smoke and CO2 Detector(s). (Included in Elite Coverage.)
26. Optional Enhanced Towing Benefit: Receipted towing expenses up to five hundred ($500.00) dollars per occurrence. No Deductible will apply to
this benefit.
27. Optional Hi-Tech Package: CB Radio, Satellite Dish, Radar Detector, Stereo Equalizer, On Board Global Positioning System (GPS), Fax Modem,
Built-in Television (32 inches or less), Built-In VCR/DVD Player(s), Built-in Compact Disc Player(s), Built-in Radio, Built-in Video Game Systems,
Personal Computer Systems including Monitors and Printers. (Included in Elite Coverage.)
28. Optional Enhanced Television Coverage: Factory installed TV’s over 32 inches in size (maximum 42 inches).
29. Optional Non-Covered Part Cause of Loss: In the event a Breakdown occurs on a Covered Part under the Service Contract due to the failure of a
non-covered part, the Covered Part will be repaired (as an exception to the standard exclusion).
30. Optional Covered Part Cause of Loss: The non-covered part will be repaired (as an exception to the standard exclusion).
31. Optional Seals and Gaskets and Sealing Boots (excluding Weather Stripping): All Seals and Gaskets and including interior and exterior slide
out bubble seals are covered (Included in Elite Coverage.).
32. Optional Tire Coverage: If YOU have selected and paid for this option, WE will reimburse YOU for the cost of repair, or if non-repairable, to replace
YOUR tires (original tires as supplied by the manufacturer and replacement tires of like kind and quality), for the length of this AGREEMENT, if
damaged from blowout, glass, punctures or other road hazard as permitted by law in YOUR state. Some states allow coverage for repair/
replacement ONLY DUE TO DEFECTS IN MATERIAL OR WORKMANSHIP. In all cases, YOUR tire must have 5/32” of tread depth at time of
occurrence to apply. The maximum amount payable under this coverage is $35.00 per tire repair and $150.00 per tire replacement, with a maximum
AGREEMENT benefit of $900.00. Prior authorization is required from ADMINISTRATOR. This benefit is extended to the Towed Vehicle while the
Vehicle is being towed by the covered Vehicle listed on the Application page.
III. ADDITIONAL BENEFITS – (This benefit is too low, you need to buy it from another company.)
1. Towing Benefit: In the event of a Breakdown covered by this Contract, We will pay or reimburse You for receipted towing expenses up to two
hundred ($200.00) dollars per occurrence. No Deductible will apply to this benefit.
2. Rental: In the event of a Breakdown covered by this service Contract, We will pay for or reimburse You for receipted expenses to rent a replacement
vehicle from a licensed rental agency. Coverage will be provided to You up to a maximum of fifty dollars ($50.00) for every eight (8) labor hours, or
portion thereof for applicable labor time required to complete the repair, for up to five (5) days up to a maximum of two hundred fifty dollars ($250.00)
for each repair visit. No Deductible will apply to this benefit. Parts and Inspection Delay – Included in the above rental benefit options, is a maximum
of four (4) additional days of rental Coverage for parts delays and/or unit inspection requested by the Administrator. No Deductible will apply to this
benefit.
3. Trip Interruption: In the event a Breakdown covered by this service Contract occurs more than one hundred (100) miles from Your home and results
in a Licensed Repair Facility keeping the Motor Home overnight, We will reimburse You for receipted motel and restaurant expenses, up to one
hundred twenty-five dollars ($125.00) per day up to a maximum of three (3) days. Total benefit per occurrence of three hundred seventy-five dollars
($375.00) applies. No Deductible will apply to this benefit.
4. Food Spoilage: In the event of a mechanical breakdown of a covered refrigerator or freezer component, We will reimburse YOU for actual receipted
expense for food and beverage spoilage, not to exceed one hundred dollars ($100.00) per occurrence.
“Sign and Drive” Emergency Roadside Assistance
If you are in need of non-accident related emergency roadside assistance as listed below, You must call (866) 994-4667. Only service requests
provided through this number will be honored. Emergency roadside assistance services are not available in areas where state providers are
exclusively utilized. The maximum amount of benefits payable is one hundred dollars ($100.00) and total benefit throughout the term of this
warranty is five hundred dollars ($500). If the cost of service rendered exceeds one hundred dollars ($100.00), then you will be required to pay
the difference at the time of service. The following benefits are available 24 hours a day, 365 days a year, anywhere in the United States and
Canada. No Deductible will apply to this benefit. Benefit may be prohibited in certain states.
♦ Jump Starts
♦ Flat Tire Changes – utilizing your vehicle’s inflated spare.
♦ Fluid Delivery – the cost of fluids is not covered and must be paid by you when service is rendered.
♦ Lockout Service – cost of key cutting/replacement is not covered and must be paid by you when service is rendered.
♦ Concierge/Navigational Assistance – includes courtesy assistance and emergency phone call support to relatives, police, etc.
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IV. GENERAL PROVISIONS
This service Contract is between You and Us, and is subject to all the terms and conditions contained herein:
A. Service Contract Coverage Period: The time and mileage limits of the term selected start on the SALE / PURCHASE DATE located on page 1 of this
AGREEMENT and from the mileage on the odometer on that date. Coverage expires when the length of time of the COVERAGE TERM selected as
shown in the application section of this AGREEMENT is reached or total mileage on the vehicle is equal to the sum of the selected mileage plus the stated
mileage on the VEHICLE at the SALE DATE, whichever occurs first. If the Contract purchase date is more than ten (10) days after the Motor Home
Purchase Date, then a MANDATORY “Elimination Period” will apply before Coverage begins (see below). The Contract will expire according to the time or
mileage of the plan You selected, whichever occurs first, as shown on the Application. Coverage is provided only for claims made and reported to the
Administrator during the Contract Period. Elimination Period means thirty (30) days AND five hundred (500) miles from the date this Contract is
purchased. Coverage will commence the day following the Elimination Period. Claims incurred during the Elimination Period are not covered. Once the
ADMINISTRATOR accepts this application, if shall be retroactive to the IN-SERVICE DATE and coverage may NOT be changed.
B. Limit of Liability: – Per Repair Visit – Our liability for any one (1) repair visit shall in no event exceed the Trade-In Value of Your Motor Home at the
time of said repair visit as listed in the recognized and published Used Motor Home NADA Price Guide. Aggregate: The aggregate limit of liability of all
benefits payable shall never exceed the Actual Cash Value of YOUR VEHICLE at time of purchase / lease, or $100,000.00 (one hundred-thousand
dollars), whichever amount is less. WE will not be liable to YOU for consequential damages or injuries, nor for any costs or expenses that provide
betterment, upgrade, or enhancement to YOU or YOUR VEHICLE. This limit of liability applies regardless of the cause and regardless of the legal theory
asserted. There are no warranties that extend beyond the description on the face hereof. The warranties of merchantability and fitness for a particular
purpose are expressly excluded and disclaimed.
C. Deductible(s): DEDUCTIBLE: Means the amount YOU must pay for covered repairs per visit, as marked on the ADMINISTRATOR copy of YOUR
AGREEMENT. If YOU have a factory warranty deductible charge (for a repair covered by YOUR AGREEMENT), this AGREEMENT will pay charges
in excess of YOUR AGREEMENT DEDUCTIBLE (up to a $100.00 maximum per occurrence) Optional DISAPPEARING $100 DEDUCTIBLE: Means
if YOUR VEHICLE is returned to the SELLING DEALER for repairs covered by this Contract, YOUR Deductible will be waived.
D. Transferability: Your service Contract may be transferable to someone to whom You sell or otherwise transfer Your Vehicle while this service
Contract is still in force. This service Contract cannot be transferred if the title transfer of Your Vehicle passes through an entity other than the
subsequent buyer, or Your Vehicle is sold or traded to a dealership, leasing agency or entity/individual in the business of selling vehicles. This service
Contract can only be transferred once and the transfer must be initiated by the original service Contract holder. In order to transfer the service
Contract, the following must be submitted to the Administrator within thirty (30) days of the change of ownership to the subsequent individual
purchaser.
• Original service Contract Application;
• Letter requesting transfer signed by You and the purchaser of Your Vehicle and listing the date of transfer and the
current odometer mileage;
• Seventy-Five Dollar ($75.00) Transfer Fee made payable to the Administrator; and
• Copies of all maintenance records.
Forward all required documentation to the Administrator at the address shown in the service Contract. Any manufacturer’s warranty must also be
transferred at the same time as vehicle ownership transfer. Note: The term and/or coverage under some vehicle manufacturer’s warranties are
reduced upon transfer to a subsequent vehicle owner. Breakdowns to components covered by the manufacturer during the term of the original
manufacturer’s warranty are not covered under this service Contract regardless of transfer. Copies of all maintenance records and original receipts
showing actual oil changes and manufacturer’s recommended maintenance must be given to the new owner and provided to the Administrator at the
time of submission of the transfer request. These maintenance records must be retained along with similar documentation for future maintenance
work that the new owner has performed in accordance with Section VI. CONTRACT HOLDER’S RESPONSIBILITIES. If these requirements are not
met, the Administrator has the right to deny transfer of this service Contract.
E. Cancellation of Your Contract: You may cancel the Contract at any time by 1) Contacting the Seller to complete and sign a cancellation form or 2)
Mailing written notice to the Seller of Your desire to cancel the Contract. In either instance above, the request must be accompanied by a notarized
affidavit indicating the odometer reading at the date of the request. The request for cancellation must be made no later than forty-five (45) days of the
date that the cancellation is to become effective (except in the case of repossession, stolen or totaled vehicles). The Administrator may request
supporting documentation from the primary insurance company or police reports indicating dates and mileage at time of incident. We may cancel, at
any time if a) Your Vehicle is totaled or is repossessed, b) Your Vehicle’s odometer is disconnected or altered or the true and actual miles cannot be
determined, c) Your Vehicle is used in a manner not covered by the Contract, including vehicle modifications not recommended by the manufacturer,
d) The charge for the Contract is not paid, e) You employed intentional misrepresentation in obtaining the Contract, f) You employed intentional
misrepresentation in the submission of a claim, g) Your Vehicle does not have a valid manufacturer VIN, h) Your Vehicle’s title is branded as salvage,
junk, rebuilt, totaled, flood damaged or manufacturer buyback, i) Your claim total aggregate has reached the Vehicle Purchase Price. Notice of such
cancellation will be delivered to You by first class mail. The notice of cancellation will state one of the above mentioned basis of cancellation and will
include any reimbursement required. The cancellation will be effective as of the date of termination as stated in the notice of cancellation.
F. Refund Calculation: If no claim has been made under this Contract, You may return this Contract within sixty (60) days of the Contract Purchase
Date. Upon Your return of the Contract within the applicable time period, this Contract will be null and void and We will refund to You, or credit to Your
account, the full amount of the purchase price of this Contract. This right to void the Contract is not transferable and applies only to You, the original
Contract Purchaser. If you cancel this Contract after the sixty (60) day period has expired, or if a claim has been authorized or paid on your behalf
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pursuant to the Contract, the cancellation refund will be calculated on a pro-rata method which reflects the greater of the days in force of the miles
driven based on the term of the plan selected and the date Coverage began, less any claims authorized or paid on the Contract where applicable by
law, and less a seventy-five dollar ($75.00) administrative fee.
G. Right of Removal: In the event of any dispute between Us and the Licensed Repair Facility, We shall have the right, with Your permission, to remove
the Vehicle to a Licensed Repair Facility of Our choice.
H. Subrogation: In the event that coverage is provided under this AGREEMENT, WE shall be subrogated to all the rights. YOU may have to recover
against any person or organization arising out of any safety defect which is the subject of a voluntary or mandatory recall campaign, as well as out of
any order, judgment, consent decree, or other settlement, and YOU shall execute and deliver instruments and papers and do whatever is necessary
to secure such rights. YOU shall do nothing to prejudice those rights. Further, all amounts recovered by YOU for which YOU have received benefits
under this AGREEMENT shall belong to, and be paid to US, up to the amount of benefits paid under this AGREEMENT.

V. WHAT IS NOT COVERED

This Contract does not provide Coverage:

A. For repairs to any part or parts of the described motor home not specifically listed in the schedule of coverage section of this contract (not applicable to
elite coverage).
B. For any of the following parts: battery, battery cables, strut cartridges, shock absorbers, manual transmission clutch assembly (friction clutch disc,
pressure plate and throw out and pilot bearing), manual and hydraulic linkages, transmission and brake cables, distributor cap and rotor, safety restraint
systems (including air bags), glass, lenses, headlamps and projection lamp assemblies, sealed beams, light bulbs, fuses, circuit breakers, brake rotors
and drums, exhaust pipes, emission components, windshield wiper arms, weather strips, built-in televisions in excess of 32” (unless optional coverage is
purchased), trim, moldings, bright metal, chrome, upholstery and carpet zippers, nuts, bolts, and fasteners, freeze plugs, cup holders, ash trays, dash pad,
squeaks, rattles, water leaks, wind noise, seat frames, paint, outside ornamentation, inside and outside door handles, hinges, mirrors, mirror hinges, mirror
housings, hubcaps, bumpers, body sheet metal and panels, body parts, frames, brackets and structural body parts, tires, and wheels/rims/studs.
C. For maintenance services and parts described in your motor home’s owner manual as supplied by the manufacturer and other normal maintenance
services and parts which include, but are not limited to: alignments, adjustments, cleaning, wheel balancing, tune-ups, spark plugs, spark plug wires, glow
plugs, hoses (except high pressure steering and air conditioning), drive belts, brake pads, brake linings/shoes, wiper blades, shop supplies and
environmental waste charges. Filters, lubricants, coolants, fluids and refrigerants may be covered if replacement is required in connection with a
breakdown.

D. For damage and/or breakdown resulting from collision, road hazard, fire, theft, vandalism, riot, explosion, lightning, earthquake, windstorm, volcanic

eruption, freezing, rust or corrosion, hail, water or flood, acts of god, salt, environmental damage, chemicals, contamination of fluids, fuels, coolants, or
lubricants.
E. For any breakdown caused by misuse, abuse, negligence, lack of scheduled maintenance required by the manufacturer’s maintenance schedule for your
motor home, or improper servicing or repairs performed by you or a repair facility. For any breakdown caused by sludge build-up, lubricant blockage or the
failure to maintain proper levels of lubricants, and/or coolants, or any breakdown resulting from failure to protect your motor home from further damage
when breakdown has occurred.
F. For any repair or replacement of any covered part if a breakdown has not occurred or if the wear on that part has not exceeded the published field
tolerances allowed by the manufacturer.
G. If any alterations have been made to your motor home or you are using or have used your motor home in a manner not recommended by the
manufacturer, including, but not limited to damage resulting from: the failure of any custom or add-on part, all frame or suspension modifications, lift kits,
oversized/undersized tires, trailer hitches, engine modifications, transmission modifications, and/or drive axle modifications, emissions and/or exhaust
systems modifications.
H. For motor homes that do not have valid manufacturer VIN or are title branded as salvage, junk, rebuilt, totaled, flood damaged or manufacturer buyback.
I. For breakdowns, if the motor home odometer is broken, has been altered and/or ceased to operate so the actual motor home mileage cannot be
determined.
J. For any liability for property damage, or for injury to or death of any person, arising out of the operation, maintenance or use of your motor home,
described in this contract, whether or not related to the parts covered. For loss of use, time, shop delays, profit, inconvenience, or any other loss or
incidental or consequential damages, (except as otherwise may be provided under optional coverage) including any consequential damage to a noncovered
part that results from a breakdown.
K. For Voice Recognition Systems; Perimeter Warning Systems or any part thereof; Infrared Systems or any part thereof.
L. When the responsibility for the repair is covered by an insurance policy, supplier or repairer guarantee/warranty, manufacturer and/or dealer customer
assistance program or any warranty from the manufacturer such as extended drive train, major component or full coverage warranties (regardless of the
remaining manufacturer’s warranty when you purchased this contract). Further, coverage under this contract is similarly limited in the event of a
breakdown if the manufacturer has announced its responsibility through any means, including public recalls and factory service bulletins.
M. If your motor home is used for towing a trailer or another motor home or object unless your motor home is equipped with factory installed or factory
authorized tow package, or is used as a commercial unit, or is used for rental, taxi, limousine or shuttle, delivery, towing or road repair operations,
construction, job site activities, hauling, police or emergency service, principally off-road use, racing or competitive driving, snow removal, route-work,
service or repair. Rental use coverage is provided if elected on the application.
N. For any breakdown occurring prior to the contract purchase date, or during any applicable elimination period.
O. For any breakdown, if the repair information provided by you or the repair facility is not true.
P. For breakdowns that occur to your motor home outside the United States of America or Canada.
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Q. New vehicles for which the full manufacturer warranty is not in place or acknowledged by the manufacturer.
R. FOR TIRE COVERAGE, THE FOLLOWING EXCLUSIONS ALSO APPLY:
1. Tire damage incurred outside the United States of America or Canada.
2. Tire damage resulting from off-road use, racing, collision with curb or another vehicle, misuse, abuse, lack of proper maintenance,
misalignment, suspension problems, vandalism, fire, upset, manufacturer defects and driving on tires which are deflated or
improperly inflated.
3. Tires which are undersized, oversized or otherwise not recommended by the vehicle manufacturer for your vehicle
4. Tires transferred from another vehicle.
5. Tires which do not have at least 5/32 inch tread depth remaining
6. Tires mounted on vehicles other than on-road use vehicles
7. Damage to tires that do not affect their performance or safety
8. Tires not retained by you for inspection when requested by the administrator
VI. CONTRACT HOLDER’S RESPONSIBILITIES
A. Maintenance Requirements and Service History: You must have Your Motor Home checked and serviced in accordance with the manufacturer’s
recommendations, as outlined in the Owner’s Manual for Your Motor Home. NOTE: Your Owner’s Manual lists different servicing recommendations
based on Your individual driving habits and climate conditions. You are required to follow the normal or severe maintenance schedule that applies to
Your conditions. Failure to follow the manufacturer’s recommendations that apply to Your specific conditions may result in the denial of Coverage. It
is required that You retain “Proof” of maintenance for the service and/or repair work performed on Your Motor Home, regardless if the work was
performed by You or a Licensed Repair Facility. “Proof” means repair orders from a Licensed Repair Facility and/or a self-maintained
maintenance log that has corresponding “purchase receipts” for oil, filter, coolant, brake system flush, etc. A self-maintained log without corresponding
“purchase receipts” is not acceptable as “Proof” of maintenance. Repair orders from a Licensed Repair Facility must be readable and
understandable, with maintenance service performed, Vehicle Identification Number (VIN), date, mileage, Your name and signature, repair facility
name, address, and phone number. “Proof” of maintenance and/or Your self-maintained log, with corresponding original receipts, may be requested
by the Administrator for related repairs.
B. In Case of Mechanical Breakdown or Failure
1. You must contact the Administrator for instructions at: 877-356-1500, Fax: 614-652-3640. Services performed outside the issuing dealer will be
paid at a rate established by the Administrator. Mail all authorized claims to: National Administrative Service Co., Ltd., 400 Metro Place North
Suite 300, Dublin, Ohio 43017. Prior authorization from the Administrator is always required prior to any services being performed
under this Contract, except for emergency repairs. (See section B.3 for details.) Under certain conditions You may be required to have the
Vehicle sent to a Licensed Repair Facility selected by the Administrator.
2. Submitting a Claim – After the Administrator has authorized the claim, You are responsible for payment of the Deductible, co-pay and any
item(s) not covered by the Contract. Within thirty (30) days of the authorized claim, submit a legible, itemized and signed original repair order
including all sublet and rental bills when applicable, to the Administrator for claims reimbursement. (Keep a copy for Your records.)
3. Emergency Repairs – Emergency Repairs can be performed without prior approval from the Administrator provided the loss and repair meet
all of the following criteria:
a. The Breakdown or failure must prevent You from safely operating Your Vehicle,
b. The need for repair is immediate and the Administrator’s office is closed,
c. The Breakdown or failure must be of a Covered Part of your Contract and
d. The total cost of the repair/replacement must not exceed $500.
In the event You need to have an Emergency Repair performed, follow these instructions: You must have the Licensed Repair Facility call the
Administrator the next business day to report the Emergency Repair, provide the Administrator with proof of maintenance upon request and cooperate
in the investigation of any loss; Retain all parts which You authorize a Licensed Repair Facility to replace and, if the Administrator requests, bring
Your Vehicle and the parts You had replaced to a Licensed Repair Facility of the Administrator’s choice for inspection; Provide the Administrator with
proof of loss (original receipts – no photocopies) within thirty (30) days of the authorized repair.

Though we recommend Wholesale Warranties you need to read and understand your contracts.

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