Since I decided to be full-time, I have been on the lookout for an RV insurance plan. My research on essentials to being a full-timer included several items, and one of them is an RV insurance.
What then is RV Insurance? RV insurance covers those individuals who use their recreation vehicles (RV) as their permanent residence for more than six months in a year. Depending on your plan, you can have coverage from injuries, liabilities, and losses that occurred near your RV.
Whether you are a weekend camper or a full-timer, there are several options and items to consider when choosing your RV Insurance.
Yes, You Need To Buy An RV Insurance
RV Insurance comes as an option in most states’ laws as vehicles carry the campers instead of driving themselves. To put it simpler, if you tow the recreational vehicle, insurance is most likely optional.
Recreational vehicles come in different types and sizes. This is also another factor that determines whether there is a need to buy RV insurance or not. For example, when there is no need for another vehicle to help the RV transfer from one point to another, insurance coverage is most likely required.
However, it is better to have coverage for when unexpected things happen. For instance, it is recommended for newer campers to purchase full coverage insurance, so one does not lose his or her investment. Just like any other vehicle, owners are required to put their RVs under protection.
Be Knowledgeable Of The Different Coverage Types for RVs
Bodily injury is any physical damage to a person’s body. It may come in the form of a cut, abrasion, bruise, dislocation, burn, or any other injury to the body, whether permanent or temporary.
In a possible accident while in a recreational vehicle, securing coverage for bodily injury is as important. This coverage will help another person hurt in the accident, which includes all medical expenses and loss of income, up to the limit of the coverage.
Comprehensive coverage can either be used as a stand-alone or jointly with other coverages. It covers any damage in the vehicle and protects it from theft – or basically anything that is not a result of an accident, like vandalism and other acts of nature.
This coverage pays for damage to a recreational vehicle in three situations. Whether the RV hit another vehicle or object, another vehicle hits the RV, or if the vehicle rolls over. This coverage is the opposite of the comprehensive coverage.
Limited Property Damage
The coverage for limited property damage helps the owner pay for any damages to either another person’s vehicle or of its own. This comes after the owner becomes liable under the law as a result of an accident.
Personal Injury Protection
Also known as the PIP coverage, this type of coverage is an extension of a car insurance that covers medical expenses. Note that in this coverage, it does not matter who is at fault. Personal Injury Protection also covers lost wages, aside from the medical costs.
Property protection, also known as property insurance, provides liability coverage for property owners. The coverage offers monetary reimbursement for either the structure’s owner or renter, including its contents. This is in any case that there is damage or theft, and can be for a person other than the renter or owner of the vehicle injured on the property.
Roadside assistance provides towing for recreational vehicles. This coverage is available up to 100 miles from the point of disablement, to any preferred location. Roadside assistance also covers emergency roadside services like extraction (within 100 feet of a road or highway), supply delivery (oil, water, and other fluid included), battery services, inflation or replacement of tires, lockout service, and fuel.
When a driver does not have enough or no liability insurance at all, uninsured or underinsured motorist coverage is useful. The said coverage provides reimbursement for any injuries or damages made by a driver who has insufficient or no liability insurance at all. Note that this is only up to the limits of the insurance coverage.
You Can Benefit More if You Get Specialized Coverage
Specialized coverage offered by companies is essential, especially for custom equipment and other personal effects. This coverage may be of great help at the time of the RV’s loss.
Including a specialized coverage in the RV, the policy may prevent the owner or renter from wasting too much cost. The following are the specialized coverages most companies offer for both RV motorhomes and campers:
Availing custom equipment as a coverage is essential for those who have custom parts on their recreational vehicles. As an owner of an RV with a customized interior or exterior, it is necessary to remember the costs incurred in custom equipment. This will serve as the basis for insuring the vehicle.
In simple words, custom equipment is anything that is considered as an aftermarket part. The recreational vehicle’s manufacturer did not initially place this equipment.
The coverage for personal effects includes the belongings in covered loss during a vacation. An RV policy usually does not cover personal effects, but a homeowner’s policy might help as it can cover the owner or renter’s belongings.
For frequent state travelers, it is essential to check the homeowner’s policy. In cases where one travels across the five boroughs of New York City, the insurance policies of renters and homeowners are not included. Consulting an insurance expert is vital before visiting the Big Apple.
Total Loss Replacement
With Total Loss Replacement, the company pays the owner of the recreational vehicle the full replacement value of the unit, less any deductibles. TLR can also pay a higher amount than the actual price of the RV as they cover the cost of the similar model year or later versions.
One of the many benefits of Total Loss Replacement coverage is that most auto insurance companies stick with the actual cash value basis. This means that the unit the company gives back is at today’s cost, and not depreciate it based on its age.
Another coverage for motorhomes and RVs is the vacation liability. The said specialized coverage provides insurance to any form of bodily injury and property damage while the recreational vehicle serves as a temporary residence for the owner or renter.
The coverage for vacation liability is quite similar to the standard recreational vehicle coverage. Only in this type, the accident happens while the vehicle serves as a temporary residence while on vacation, and not during a trip on the road.
How Much Do RV Insurance Cost?
There are several factors that determine the cost of an RV Insurance. It includes the type of RV or camper one owns, how old the vehicle is and the desired coverage of the owner.
For instance, companies may offer an RV Insurance that only covers damages resulting in bodily injury. As the owner of the vehicle opts to add more features to cover (like collision, comprehension, property protection, etc.), the price of the insurance also goes up.
Some may decide to create their own packages, while some may also prefer the pre-designed ones. The best way to find out how much an RV Insurance costs is by asking for a quotation.
Steps To Take To Save RV Insurance Cost
Buying the best insurance coverage for both the vehicle and the camper or owner is always the top priority. Following other people’s insurance coverage might not be the best thing to do as each camper, and the recreational vehicle has varying needs.
Thus, it is essential for the client to get the most out of the money he or she is paying. Tailoring the coverage perfectly to their needs is only the first step. As RV Insurance does not cost only a small amount, one must be wise and find ways to reduce the cost he or she needs to pay:
Acquiring multiple policies from a company will provide multi-policy discounts. It is a wise move to secure quotations that include the security of other belongings. Only then can one make sure that it is a good option to keep their policies together.
Some examples of policies clients can purchase together with RV insurance are home, life, and auto insurance. It is best to ask the agent on the availability of the mentioned policies first to make sure they are offering it.
Check online first before meeting an agent
There is no doubt on the importance of acquiring RV Insurance. However, it is also equally important to check the validity of an agent online before meeting up. Some people may try and fake their identity, close a deal with a client, only for the person to realize that the agent was not a legitimate one.
Acquiring insurance for a recreational vehicle, or any insurance at all requires a significant amount of money. It will be difficult to trace these fake agents when it is already too late and the client already made their payment.
Be specific with how often you use your RV
Though some owners or renters may think of tweaking data concerning their frequency of use to cut costs, it is important to be as honest and specific as possible. This information will determine the risks involved with the client’s use of the recreational vehicle.
For those who plan to live in their motorhome or RV permanently, their premium comes close to an insurance policy for homes or that of a floating homeowner. On the other hand, seasonal RV users will be given premiums that depend on the number of days of travel and the season it falls on.
Insurance companies may also opt to suspend policies when the recreational vehicle or motorhome is in a secure place. This means suspending any payments for the time being. When the owner has a better understanding of their RV, including how much he or she spends on it, he or she will receive an insurance policy more accurately to the vehicle’s needs.
Mind where you keep your RV
The place of storage of a recreational vehicle also affects the rate for its insurance. Keeping it in a more secure location will positively affect the insurance rate the owner will pay. For example, parking the vehicle out in the middle of a secluded forest will not produce the best rate.
When the owner is not using the RV or if it is an off-season for him or her, it is best to keep the vehicle in a place where it is safe the most.
Be Mindful Of The Factors Considered In RV Insurance
One of the major determinants of the insurance an owner will buy is the scope of the coverage. Depending on the liking of the client, it can create its own combination of features, or it may also avail pre-packaged deals.
In the former part of this article, there is a list of the different coverage types for recreational vehicles which are as follows: bodily injury, comprehensive, collision, limited property damage, personal injury protection, property protection, roadside assistance, and uninsured or underinsured motorist.
The minimum requirement for large recreational vehicles and motorhomes for most states only include bodily injuries and property damage liability. Also known as the Personal Liability and Property Damage coverage (PLPD), it only works if the client is the one at fault in the accident or collision.
Coverage scope is usually interpreted as either collision or comprehensive coverage. Collision coverage includes any compensation for when an inanimate object hits the recreational vehicle. Comprehensive coverage, on the other hand, covers physical damages within the RV that does not involve collision like theft, vandalism, fire, flood, etc.
The rate of an RV Insurance is also dependent on the location where the vehicle is kept. If the owner of the vehicle lives in an area where accident, theft, and natural disaster are most likely to happen, the cost for the insurance is most likely higher.
The state and zip code where the RV is located is also another important factor. Insurance companies refer to “actuarial tables” when determining the rate for a certain RV. The cost of living in that specific state and zip code will tell the range of rates there is in the area. This in return will tell the cost of repairs and the rate if anyone files a claim.
The age of the recreational vehicle or the camper also plays an important role in purchasing insurance for it. An older RV, for example, would yield for a cheaper insurance when a total loss replacement is chosen as coverage. This is because of the lesser cost to compensate the depreciated vehicle than buying a brand new one.
A recreational vehicle that is not in a good shape, on the other hand, may suggest that it is susceptible to breakdowns and other road accidents. One must be wise in talking with an insurance agent.
Being a member of an association for recreational vehicles can bring discounts from some insurance companies. Mentioning one’s membership in these companies to the agent is a good way to start. They may either offer discounts on their packages or different prices.
Aside from being an association’s member, a client’s driving history also matters. A new RV driver may have to pay a bigger insurance cost because they pose bigger risks. They can also be more prone to accidents and other collisions.
Small details like the frequency of a client receiving traffic tickets can also affect the decision of RV Insurance providers. There are also driving lessons specifically for recreational vehicles. Completing the course may influence the insurance company to probably reconsider giving a discount.
Going as either a weekend camper or a full-timer, one only wants to enjoy his or her time either alone or with the company. Having an adventure is all fun and exciting and the last thing a traveller wants to happen is to worry over a possible loss of belongings or an accident.
The high price of medical expenses and repairs for any damage in the vehicle can be overwhelming. All these things would not bother a traveller because of the many available options for recreational vehicle insurance.
Start planning out by identifying the needs of both the RV and the camper. Do not do this by imitating a friend’s plan. There is always a unique package for each camper, depending on their needs. Identifying the budget also narrows down the options, and by acquiring online quotations, one is closer to the RV Insurance package perfect for their needs.