Understanding RV Insurance Coverage – Rolling Stone
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When you drive an RV – a vehicle priced between $ 35,000 and $ 300,000 – you want to know it’s properly insured. It’s a problem that more than 11 million American homes are expected to face.
Like insurance policies for cars parked in your garage or driveway, insurance policies for recreational vehicles vary depending on factors such as where you live and the type of recreational vehicle you own. Here’s what you need to know about insuring your RV so that your adventures aren’t marred by financial problems due to accidents and mishaps.
Do you need RV insurance?
Whether you need RV insurance depends on the type of RV you own.
In almost all states, you must purchase insurance for a motorhome if it is considered a motorhome. In short, a motorhome is a house on wheels that can be driven. Only two states, New Hampshire and Virginia, do not require RV insurance, just as they do not require liability insurance for cars. However, it is a good idea to purchase both auto coverage and motorhome coverage in these two states.
It should be noted that if you are financing the purchase of an RV, the lender will usually insist that you purchase liability insurance as well as full and collision coverage.
Now, if you can tow your RV, like an RV or trailer, you normally don’t need to purchase a stand-alone RV insurance policy. This is because auto insurance probably covers this type of RV. You can, however, purchase additional coverage for a towable RV.
RV Insurance Basics
If you buy RV insurance, what kind of coverage can you expect to get? Normally, this is the same kind of coverage that you bought for your cars. Here’s a look at the basic coverage:
- Liability insurance. It pays other people when you injure them or damage their property. Plus, it can cover legal costs if someone who has been injured or whose property has been damaged sues you.
- Collision coverage. It pays for damage to your own vehicle when you hit an object such as a utility pole, tree, or other car.
- Full coverage. This pays for the theft of your RV or damage to the vehicle due to fire, falling objects, vandalism, weather conditions such as hail and collisions with animals.
In addition to this extended coverage, your insurance may offer optional RV coverage such as:
- Roadside assistance, including starts and towing.
- Total Loss Replacement Coverage, which pays to replace your RV with a comparable make and model if it has been declared a total loss.
- Coverage for injuries to you and your passengers caused by uninsured or underinsured motorists.
- Personal Effects Coverage for personal effects inside your RV, such as dishes.
- Vacation Liability, which pays for your liability when your RV is parked at a vacation site.
- Emergency cost coverage. Let’s say you have to spend a few nights in a hotel after your motorhome has been mutilated in a wreck. In this case, the cover may cover the bill for your hotel stay and other transport.
- Accessory Coverage, which covers damage to items such as satellite dishes and awnings.
- “Full-time coverage”, which would apply if you live full-time in your RV and cover your liability when you are parked for an extended period.
- Pet coverage, which may come into effect if your dog or cat is injured in an accident while riding your RV or if your pet is stolen with the RV.
How much does RV insurance cost?
An auto insurance company (like Allstate, Farmers, Nationwide, Progressive, or State Farm) or a specialty insurer will assess several factors to determine how much it will cost to insure your RV. These include:
- Where you live.
- What type of motorhome you own.
- The age of your RV is. (A new RV may cost more to insure than a used RV.)
- Whether you use the RV for road trips or as a permanent residence.
A key to determining the cost of your coverage is the category of RV you own: A, B, or C.
- Class A describes large motorized recreational vehicles that resemble tourist buses and are up to 75 feet in length.
- Class B includes small-scale recreational vehicles similar in size to an oversized van.
- Class C divides the difference between Class A and Class B RVs. Class C RVs have a sleeping area in the cabin.
Class A RVs are the most expensive to insure, followed by Class C and Class B.
The annual insurance premium for an RV can range from $ 200 to over $ 2,000. You can benefit from various discounts if, for example, you have kept a good driving record or if you have more than one policy with the same insurer (called regrouping).
Keep in mind that if you file a claim under the property and casualty or collision portion of your RV policy, you will have a deductible (like $ 500 or $ 1,000). This dollar amount will reduce the payment of the claim. So if an insurer agrees to pay $ 10,000 for a collision claim and you have a $ 1,000 deductible, your claim check will total $ 9,000.