Whether you have a modest travel trailer or a larger-than-life home on wheels, you need proper insurance coverage. It’s not just about the value of your RV either. You need to consider everything you store inside of your RV, too. Explore your insurance options for a worry-free travel season.
Automobile vs. Separate Policy
Unfortunately, up to half of all RV owners choose to insure their vehicle through their auto insurance policy, because it’s less expensive. However, this initial lower price is very deceiving.
Your RV is a huge investment and your auto insurance policy offers very limited coverage. If something untoward occurs you’ll either have no coverage, or insufficient coverage. This means you’ll pay out-of-pocket for these costs. Here are just a few ways RV insurance differs and why it is a superior choice.
Towing & Roadside Assistance
Some auto insurance policies include towing and roadside assistance, but many do not. Even if your auto policy has it, it also has a limit designed with a car in mind, not an RV. It can easily cost three times more.
If you breakdown and the shop cannot repair your RV immediately, your auto insurance isn’t going to help you either. RV insurance can provide money for emergency expenses such as staying in a hotel or it may pay for getting your RV home if you’re over 50 miles away.
If you’re involved in an accident and your RV’s insured under your auto insurance policy, any claims adjuster will look at the damage. When you buy a specialty policy, a claims adjuster experienced in RV repairs and costs assesses the damage to ensure that you receive adequate compensation.
Actual Cash Value vs. Agreed Value
If someone steals your RV or it’s totaled in an accident, your personal auto insurance policy typically pays Actual Cash Value (ACV). That’s the current market value including depreciation.
Specialty insurers often offer you the option to buy Agreed Value coverage. They pay the value specified in your policy, no matter the age of your RV. You can also buy coverage to provide you with a new RV if it’s less than 5-years old and it’s stolen or a total loss.
This is a big issue if you insure your RV under your auto insurance. Your personal auto policy doesn’t cover your lost, stolen, or damaged property in the RV. Since most people store many things in their RV, you’d have to replace these items yourself without specialized RV coverage.
A specialized RV policy may also cover equipment and attached accessories such as satellite dishes, ladders, and awnings, too.
Your personal auto insurance policy may not protect you from the costs associated with a lawsuit if someone injures themselves in or around your RV. Specialty coverage protects you from these costs when you’re legally responsible and using your RV as a temporary residence.
If you live in your RV full-time, your insurance agent can ensure you’re fully-covered for your unique risks. A policy for full-time residence resembles a homeowner’s insurance policy in many ways.
RV Insurance Costs
The cost of RV insurance depends on several factors. This includes the “class” your RV falls into as the value of RVs varies greatly. Of course, the coverage and deductible you choose also affects the price.
The insurer will also consider whether you use your RV occasionally or live in it full-time, and they will also look at any past claims and your driving record. Your agent will look at various carriers to find the best coverage and rates for you.
Rhode Island requires bodily injury coverage of $25,000 per person, with a total maximum of $50,000 per incident and $25,000 for damage to another person’s property. However, these minimums are far too low to protect you properly and most agents recommend uninsured and underinsured motorists coverage, too. Talk to your agent to determine which RV insurance options work best for you.