Just like cars, recreational vehicles are insurable to protect yourself and your investment. In fact, an RV insurance is comparable to insuring a car or an SUV but with tweaks to cover the uniqueness and diversity of RVs. Because RVs are a class of their own, it’s worthwhile to understand the basics of insuring one.
Any plans to insure an RV primarily start with identifying its class.
- Class A: The most expensive of the bunch. From luxury coaches, converted buses to custom-built motorhomes, these road beauties can support full-time occupancy.
- Class B: Campervan is a representative of this class and any other smaller vehicles for the usual camping trips.
- Class C: These RVs are built at a lower cost compared to Class A but can compete with the latter’s many amenities. Class C RVs are for touring groups on a friendly budget.
It also matters if your RV is self-propelled or towable.
- Examples of self-propelled RVs are motorhomes, converted bus homes, and campervans.
- Towable RVs are fifth wheels, trailers, pop-ups, campers, and any wheeled structure attached to another car, boat, or pick-up truck.
A basic RV insurance encompasses a number of coverages, such as the following:
- Comprehensive covers the costs of repairing an RV in the event of fire, theft or other non-collision incidents.
- Collision covers the costs of repairing or replacing your RV if it is damaged in a collision.
- Liability coverage protects you from costs associated with bodily injuries and/or property damages sustained by others in an accident caused by you.
Your RV protection can be reinforced by taking out additional coverage riders such as roadside and/or emergency assistance, towing assistance, and personal property theft or damage coverage.
How much RV insurance coverage you should carry is influenced by a number of factors, including but not limited to:
- Your state law. Start with the minimum insurance requirements for RVs in your state.
- Your RV. Class A RVs are most expensive to insure, followed by RVs in Class C and B.
- Your ownership. Whether you rented out or financed the vehicle can affect the insurance you take out for the RV, as noted below.
- Your deductible. This is the amount you pay out of pocket in case of accidents and the higher the amount you “contribute,” the lower your insurance costs.
- Your coverage limit. This is the maximum amount your insurance carrier will pay out in the event of losses.
- Your occupancy. It matters how you occupy your RV, either full-time or occasionally.
Choice or Requirement?
There are times when an RV insurance is a requirement.
- The RV is self-propelled. You are required to carry a liability insurance as required by your state law.
- The RV is financed. Lenders require a full or comprehensive coverage to protect them from losses until the loan has been repaid.
- The RV is rented out. While it is in your possession, you have to take out a temporary insurance policy for the RV.
Getting an insurance for your RV is a judgment call if you own the RV outright. Still, it does not hurt to take out a basic RV insurance.
If you own a towable RV, you need not take out a separate policy. Your car insurance can handle it.