Recreational vehicles include motorhomes, travel trailers, campers, fifth wheels, and more. Since these vehicles differ greatly, so do their insurance requirements.
Basic RV Insurance Rule
So how do you know whether you need insurance for your RV? The basic rule is that insurance is usually optional for towed, self-contained vehicles. Vehicles that you drive from point A to point B, such as a motorhome, need at least the state mandated insurance liability minimums.
Rhode Island only requires $25,000 bodily injury per person per accident, $50,000 bodily injury for all persons per accident, and $25,000 property damage liability; however these minimums are woefully inadequate. Your lender may require you to carry additional protection too.
Understand Your Risk
But remember, just because your state doesn’t require additional insurance, it doesn’t mean you shouldn’t buy it. Insurance protects you from risk and financial loss. If you own a costly recreational vehicle, it is often worthwhile.
For instance, a towed camper may not require insurance. However, new campers are very costly. A moderately-appointed towed camper trailer might cost $25,000, while a fifth-wheel may cost $50,000. Without insurance coverage, you risk your entire investment.
Policy Costs Vary
RV insurance costs vary by the class of the vehicle, usage frequency, your location, driving history and claims, your deductible and coverage limits, and whether you live in your RV full-time, or not.
RV insurance offers many of the same protections an auto policy does, such as collision, comprehensive, bodily injury and property damage liability. However, policies often offer additional coverages. Alternatively, you can pick and choose which additional coverages you need.
An RV policy usually provides vacation liability with a limit of around $10,000 when you buy collision and comprehensive. However, you can increase this limit.
This pays for bodily injury and property damage resulting from an accident while you’re using your RV for pleasure as a temporary vacation residence.
Entrapment & Roadside Assistance
It can be very costly to tow your RV to the nearest qualified repair facility If it breaks down. Freeing your RV from in mud, snow, sand, or water is equally challenging.
Entrapment coverage pays for freeing your RV within 100 feet of the roadway. Roadside assistance pays for towing and labor charges when necessary, even if it’s because you ran out of fuel, your battery died, you locked yourself out of your vehicle, or you had a flat tire.
If you insure your RV on your auto policy, your policy typically doesn’t provide coverage for personal property. While your homeowner’s policy may provide limited coverage for off premises personal belongings, you’ll also pay your deductible. Optional RV coverage protects your belongings well.
Total Loss Replacement
An owner of a new RV may want to consider a total loss replacement policy. Most policies provide actual cash value compensation calculated replacement cost, less depreciation.
All vehicles, including RVs, depreciate quickly and substantially during the first five years. Without total loss replacement coverage, you could lose up to half your RVs value or more without total loss replacement coverage, if you claim a total loss within that period.
Loiselle Insurance provides unbiased insurance advice for your Rhode Island recreational vehicles. Let us explain your options and find the best possible products at the most reasonable rates. We work for you, not the insurance companies.