The differences between warranties and mechanical breakdown insurance can be subtle. Those looking at options for their RV’s, it is important to keep in mind that mechanical breakdown insurance is much more of an insurance product than a warranty. There are standard differences that set the two apart.
Covering Parts and Labor
In general, a warranty guarantees that specifics parts of the vehicle as they are produced from a factory. Mechanical breakdown insurance policies focus more on ensuring the RV is operational. There is more risk assessment in writing these policies and in calculating the cost of fixing the RV if damaged.
Warranties are not known for their flexibility. Insurance products have more customization and usually come with deductibles and the ability to include certain coverage for aspects of your RV. Warranties have no variables – you either have coverage, or you don’t.
A warranty is often offered as part of the purchasing process. Essentially, manufacturers make a deal directly with the buyer as they buy their new RV. A mechanical breakdown policy happens after purchase and as a completely separate deal. The owner of the RV must go out and purchase the policy. This is a major difference between the two.
Manufacturer direct warranties usually require the buyer to bring the RV to a certified mechanic in scheduled intervals. The most common type of warranty requires the owner to bring the RV to the dealer for any maintenance. This is not the case with mechanical breakdown insurance. With an insurance policy, you can take your RV to any mechanic for repairs and be reimbursed according to market standard prices.
These are the major differences between the two. Warranties are more traditional and are easy to obtain as they are guarantees from the manufacturers that the components of your RV will function properly for a determined period of time. Mechanical breakdown insurance policies are generally more flexible and comprehensive and allow for more varied protections. RV policies can be tweaked and some portions of the policy can be suspended while the RV is not in use.
The kind of coverage you need is up to you and how you will be using your RV. If you are looking into mechanical breakdown insurance, be sure to conduct research and find the best policies that will offer the best coverage.