Insuring Your RV
As long as you drive any type of vehicle on public roads, you are required by law to be liable for any situations that can cause personal injury or property losses. And if you own an RV you're obligated to yourself and your family to protect your expensive investment from possible damage due to unforeseen circumstances, and losses of personal property from theft or fire.
Most states require that the registered owner of an RV be covered by minimum liability limits. If you have any other assets at all, such as a home or other property and investments, it's usually wise to carry higher limits. The minimum insurance coverage is often insufficient in the event you're responsible for an accident. As for the balance - the other party's lawyers will probably sue you personally for reimbursement of expenses and personal injuries not covered by your insurance limits.
Although liability coverage is all that is required by each state, additional coverage will almost always be required by your lender if the RV is financed. Usually, the bank or finance company will insist that comprehensive and collision coverage are carried and that deductibles are no larger than $500. That means you are personally responsible for the first $500 worth of damage in the event the RV is stolen, vandalized or involved in an accident. If you allow this coverage to lapse, expect a nasty note from the lending institution, giving you a short time before forced coverage is added to your monthly payment. This is usually a very expensive policy.
Certain personal belongings including electronic items, cameras and sporting goods, etc. may not be covered by your vehicle policy (they may however be covered by your homeowner's policy). Make sure you check the fine print carefully or ask your agent for a complete breakdown of all the specific items protected by your policy.
A complete policy should also provide medical coverage for anyone injured in an accident and protection against uninsured motorists. These pay expenses for bodily injury, loss of wages, incidental losses and sometimes vehicle repairs due to an accident where an uninsured motorist was at fault.
If your motorhome, tow vehicle or truck camper is stored on private property for extended periods of time, you may be able to save money by canceling the unnecessary portions of the policy. If your insurance company allows this, hold off on coverages such as liability, collision, medical and uninsured motorists until needed. But always keep comprehensive coverage for such things as theft, fire and vandalism active.
Most RVers make sure their rigs are insured for the obvious losses stated above. But what you might not have considered is how insurance companies determine the worth of your rig when a total loss is experienced. Most insurance companies typically assess the current market value for totaled or stolen rigs. Considering the usual long terms of the finance contracts, RVs are likely to be worth less than the balance of the loan during the first several years. This leaves you having to pay your finance company the deficiency out of your own pocket. During the early years of your RV loan, gap insurance is a must. With gap insurance, you won't be asked to make up any deficiencies between the market value of the RV and the loan payoff in the event of a total loss. It's wise to shop around for a good policy; rates vary tremendously. It's always best to deal with companies that understand the RV market and the special coverage that may be needed.
For RV Insurance
We Heartily Recommend:
RV America Insurance
P.O. Box 3307
West Lake Village,