Wow so many places to start here.
1st Sorry about your ordeal, hoping to learn more about Onan and Good Sams who I am a member of but [disclaimer] I don't have any of their products or services.
#2. You said "They are refusing to file a claim against the Good Sam Extended Service Plan." Is it really that they want you to guarantee or insure payment if insurance does not pay? We have do that all that time at a Doctor's office or medical coverage. This is not a routine repair job and why should Onan get the shaft if Good Sams refuses to pay?
#3. When was the Generator last serviced? Whether warranty transferred or not, it is / was under 3 years old. If you can show where it was at an Authorized Dealer for service, it may weigh in on their covering a true defect.
#4. How long have you owned and how many of the 1600 hrs did you put on it? My Onan has service call at 1st 50 hours and every 150 hours after that. That would be 10 Service calls in 3 years. If you had that much paperwork, I am pretty sure they find a way to cover or help you with the cost to repair without insurance? I don't think I would have made 10 service calls but if I was doing 550 hours / year on my gen set, I would have it serviced at least twice a year. If it was serviced, someone would have / should have noticed a faulty Throttle bottle due to poor idling etc.
#5 What would I do now? I call Good Sam and find out what they say. I am as nice as possible and throw myself to the mercy of their court. You can dump the Good Sams warranty later; but that is different story
Regardless I take what I can get and move on.
#6 Assume Good Sams will do absolutely nothing. I then contact Onan National Customer Service Center and plea for their help. Tell them you are willing to pay out of pocket. If you are sincere and get the right person, they may cover the parts and force you to pay for all of the labor and incidentals.
Thanks for sharing your story. I think when dust settles you will want the genset fixed. If they say they replace for $3k and give you new 3 year warranty that would be intriguing but I think I just get it repaired expected to spend around $1,000. During interim, I will make sure my genset is serviced by Authorized dealer at least until after year 3. Good luck
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