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Hi, my caravan turns 3 years old at the end of the month and I am considering whether it is worth buying an extended warranty.  My dealer has offered me a 3 year extension for £299.

What is the view on extended warranties; are they worth it?

Does £299 sound reasonable?

Many thanks

You need to know what the extended warranty covers.  First of all, I would check to see if it covers damp/ delamination and any of the usual headaches.  Then ask what the excess would be on each claim.  Is the warranty with the dealer or the company that made the van.  Is the warranty transferable if you were to sell the van? - could be a useful selling point.  Would any insured repair work be possible at any authorised repairer?  If you fell out with your dealer, or lost confidence in their repair work, you would need to know what your options are.  Presumably you would have to have your van serviced regularly - with whom?

These are the first questions that I would ask before making a decision.  I'm sure someone else will be along with more questions to ask, or who has had experience.

As a general rule an extended warranty is of little benefit unless the product covered is an expensive item. So many electrical products are not worth covering as (a) they don’t go wrong and (b) if they do then you would probably want the latest gismo anyway rather than a repaired old piece of technology. The OFT investigated extended warranties some years back and concluded that the consumer was being ripped off, but limited its investigation to electrical goods and not warranties for items such as caravans. We have one for our washing machine and its been rebuilt twice for no charge other than the policy premium. Brilliant value for money

On the face of it an extended warranty for an expensive item like a caravan for £299 for three years is quite cheap. However, as David says, check first to see just what it covers. If it covers the same matters as the warranty issued when the van was new then it covers items that could be quite expensive to remedy, so £299 is considerable peace of mind. I’m almost at the bite his hand off stage!!!

Does the warranty cover parts AND Labour? If both then its very good, but I suspect that at that premium it may be just one or the other. Could still be a saving over the three year term.

If you look at the policies of say, Motorcare Warranties Limited (MWL) or Mechanical Breakdown & General Insurance Services Limited, (MBGISL) their extended warranties cover mechanical breakdown of the main components such as body leaks; braking systems; chassis; running gear; suspension; towing mechanism; auxillary electrics; toilet; cooker; fridge; gas system; heating and water systems; manufacturers fitted units. If you consider the cost of repairs or replacement parts for any of these items then £299 may seem like small beer. NOTE its “mechanical” breakdown and not just breakdown. When reading a policy don’t just assume that the words mean what you think they mean.

It may be worth checking that the policy also covers GRP and plastic panel repairs (MBGISL does but I think that MWL may not. )

Chances are that what you are being offered is a product underwritten by an insurance group. That is not necessarily a bad thing. All you want is peace of mind and the breakdown repaired whoever organises it. It may matter where it is organised so you need to check that any work can be undertaken locally.

The following are usually excluded -Tyres, batteries, gas bottles, glass, paint, brightwork and all similar trim and finish. Soft furnishings, carpets, floor coverings, work surfaces and all similar decor. Windows, window catches, stays and associated fittings. Adjustment of blinds, hinges, catches stays and doors. Replacement of bulbs, fluorescent tubes, fuses and electrical connections. “A” frame covers and wheel spats. Entertainment/communications systems and connected equipment. Normal wear and tear/servicing items and other components subject to routine maintenance.  

You get what you pay for and many companies offer different levels of cover for you to choose. Gold Silver Bonze that kind of approach.

You will have to regularly service the van, but you would do anyway.

 Phil

We paid £500 for a 3 year independent warranty when we bought our van. It was only 2 years old when we bought it but the previous owner had missed the first service so the manufacturers warranty was null and void.

We have had a couple of small jobs done under the warranty. Our dealer has dealt with the company direct and we have not had to pay any excess. It covers everything including water ingress and we feel it has been good value for money for our peace of mind.