Finance
RV and Motorhome
INSURANCE BASICS
by Justin Husman
When it comes to insurance ,
there are two important factors to consider – cost and coverage . Just about every company will allow you to put your motorhome or trailer on your regular auto policy . This is certainly the cheapest way to cover your rig , but it does sacrifice coverage , as an auto policy ( and the coverage it provides ) is a lot less robust than a dedicated RV policy . If cost is your only consideration , then this is going to be the cheapest ( and quickest ) way to get your new rig covered . As I said , though , you will be sacrificing several coverages that are available on an RV specific policy . To give you a better idea , here are some of the coverages we are talking about .
One of the biggest sacrifices you would make with a brand-new rig is the available replacement cost coverage . Auto policies are written with “ ACV ” or Actual Cash Value coverage . RV ’ s depreciate pretty quickly , and if you put your brand-new trailer or RV on your auto policy , and you lose that instant depreciation once it becomes a used vehicle ( basically the minute you sign the papers ) you can be upside down if something happens right away . On RV specific policies , quite often there is “ replacement cost ’ coverage available for up to 3 years . That means that if you have a total loss , you will be paid what it costs to replace your rig with an equivalent brand-new model .
A second coverage you sacrifice by putting your rig on your auto policy is “ trip interruption ” coverage . If you have a breakdown on the road that requires some time to repair , trip interruption coverage on an RV
2 important considerations
COST
COVERAGE
specific policy will put you up in a hotel for the time it takes you to get it repaired . Trip interruption coverage can be very worthwhile with an older rig , and is not available on auto policies . Even aside from trip interruption , an RV police comes with higher towing limits . Most auto policies are limited to $ 150 in towing , which generally won ’ t even get your rig onto the truck .
Aside from towing and repairs , there are other coverage options on an RV policy that aren ’ t available on a regular auto policy . RV policies come with an additional liability coverage , similar to your homeowner ’ s insurance ; it will cover you if you are found liable for damages when you are at the campground . For example , you have a guest at the campground that hurts himself and you are somehow liable , you would have liability coverage for that . On a regular auto policy , you have no such coverage . Another consideration is the availability of personal effects coverage . With an RV policy , you have coverage for your “ stuff ” – clothes , personal items , etc . If you travel with enough things , this is very worthwhile coverage , because otherwise you will have to claim it on your home policy , which can increase your home rates tremendously ( and generally comes with a higher deductible ).
There are a few more RV specific coverage options available , depending on the company , but as you can see , putting your rig on an RV policy will give you far more coverage options – both to protect your investment and to protect you as well . Even though putting your RV or trailer on your regular auto policy may be cheaper , it ’ s not going to be tremendously cheaper . Some of these coverage options I have mentioned here are little to no cost options on a proper RV policy . No matter what you do , you should speak to an experienced insurance agent to understand the different options available to you .
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