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Do You Have Enough RV Insurance?

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 | June 25, 2020

Do you have enough RV insurance in the case of a serious accident or lawsuit? Without sufficient coverage, you could be at risk of ending up with a hefty lawsuit that could strip you of everything you’ve worked for—not just your RV but also your home, assets, future earnings, bank accounts, and even furniture. You’re also at risk of getting into an accident and losing your motorhome, and without enough insurance you’d be financially responsible to replace it.

Don’t be left in a lurch without the proper RV insurance. Whether you’re using it for a summer vacation or it’s your primary residence, having enough RV insurance is critical to protecting your assets, your family, and your means of transportation.

How much RV insurance do you need?

Is RV insurance required?

There are three instances when RV insurance would be required.

1. You have a loan on the RV or you’re financing it. Most lenders require an RV owner to carry a minimum amount of liability and comprehensive/collision insurance. This protects the driver and the lender from any sort of financial risk.

2. The RV is a rental vehicle. Most rental companies offer a low-cost RV insurance for the rental period, like if you’re using it for a two-week vacation.

3. Your state requires you to have liability (and/or uninsured and underinsured) insurance in order to drive your RV. Most states require liability for any vehicle being driven on the road. This applies to motorhomes in class A or B; the liability from your auto insurance will usually extend to towable RVs (class C), like fifth wheels, pop-ups, and travel trailers.

The minimums that your lender, rental company, or state require might still not be enough coverage for your personal needs.

So how much RV coverage do you really need?

Standard RV coverage

A standard RV or motorhome policy will include:

  • Bodily injury liability
  • Property damage liability
  • Comprehensive
  • Collision
  • Uninsured/underinsured
  • Medical expenses

Your policy may also include personal possessions, but you want to double check with your insurance agent. There are also supplemental RV policies that you might want to purchase to ensure you’re fully protected against anything that may come your way.

If you use the RV as your primary residence, you want to purchase full timer’s insurance. This is slightly different than a standard RV plan, because it will also cover the homeowner’s aspect of living in your RV. The hybrid nature of this insurance requires additional coverage policies and limits.

Exclusions in your RV coverage vary by carrier. Make sure you’re aware of everything that’s included and excluded, so you can find the right policy and riders for your needs. Don’t know exactly what you need? No worries. That’s what a licensed InsuraMatch agent is for! Give us a call today at (844) 300-3294.

Learn how to find the right RV insurance here.

How much RV coverage do I need?

RV liability

What is RV liability?

There are two types of RV liability coverage: bodily injury and property damage.

Bodily injury liability helps cover physical injuries to another person that you cause while operating your RV. It may also cover any injuries incurred while someone is in or around your RV, especially if the RV is your primary residence. Bodily injury will pay for that party’s medical bills, loss of income, pain and suffering, and your legal expenses, up to your limits.

Property damage liability helps cover damages to another person’s property, like their RV, car, or any other structures. If you are found responsible for their damages, this liability will step in to help pay to repair or replace their property as well as your incurred legal fees, up to your limits.

How much RV liability you need

Notice that we say “up to your limits” with both forms of liability. That means your insurance company will only pay up to the limits that are defined on your policy, and not a cent more. So if you have a $20,000 bodily injury policy and someone sues you (and wins) for $500,000, you are on the hook for the remaining $480,000.

When it comes to any form of liability insurance, you want enough to cover all of your assets. In the case of a serious accident, you don’t want someone to sue you “for all you own.” They could potentially come after your RV, home, assets, future income, savings accounts, and more. It’s always a good idea to have enough liability insurance that you wouldn’t have to pay exorbitant costs out of pocket in the case of a hefty lawsuit. Even the safest drivers on the road aren’t exempt from unforeseen accidents.

Note: Your RV liability insurance will likely be written as follows: 40/80/10. That would mean $40,000 of bodily injury per person per accident, $80,000 of liability per accident total, and $10,000 per accident for property damage. Make sure you know these numbers, and ensure they’re high enough to protect your assets. Your InsuraMatch agent can help you come up with the right numbers to protect yourself, call us today at (844) 300-3294.

RV comprehensive + collision

What is RV comprehensive and collision?

Comprehensive and collision insurance help cover damages or losses related to your own RV.

Collision comes into play any time your RV is damaged due to a collision, whether or not you are at fault. For example, if another driver runs into your RV or you hit your RV into a mailbox, your collision coverage will step in to pay for your own damages, up to your limits.

Comprehensive essentially helps cover “everything besides collision.” This includes acts of God like falling tree limbs or hitting an animal. It can also cover the theft of your RV. You may have a named perils policy, where your comprehensive portion covers only those perils specifically named, or an open perils policy where it includes all hazards except those directly excluded. Work with an insurance agent to find out which perils you are—and should be—covered for.  

How much RV comprehensive/collision you need

You want your comprehensive and collision insurance to help cover the value of your recreational vehicle in its entirety (minus personal possessions and custom equipment). If your RV were stolen or completely destroyed, you’d want your insurance to pay out enough for you to replace it.

This is typically “replacement cash value,” which is an agreed-upon value that the insurance company determines when writing your policy. However, this is more expensive than “actual cash value,” which pays out the value of your RV at the time of loss, including depreciation. For example, you bought your RV for $50,000 five years ago. Today, it’s worth $10,000. An actual cash value policy would pay out the $10,000 it’s worth today, while a replacement cash value would pay up to $50,000 or another agreed upon price so you could replace the RV after the accident.

Some people also choose to get higher collision insurance than comprehensive or vice versa in order to lower premiums. Keep in mind, though, if your collision insurance is high and comprehensive is low, you would still only get paid out up to the limits of your comprehensive in the case of a non-collision incident. We don’t recommend this plan to a lot of people. Instead, we advise finding reasonable limits for both portions of your policy, so you’re completely covered no matter what happens to your RV.

RV uninsured/underinsured

Most states require uninsured/underinsured motorist coverage. This can help protect you in the case that the other driver involved in an accident (for which that other party is found responsible) doesn’t have sufficient insurance to cover your costs.

For example, someone rams into the back of your RV, and it will cost $14,000 to repair your vehicle. The other driver only has $10,000 in property damage liability. Your uninsured/underinsured coverage can help you pay for the remaining $4,000, so you can get your recreational vehicle fixed and back on the road. (Your insurance company may then go after the other driver personally so they can receive compensation. Regardless, you should be covered!)

Most states recommend at least $10,000 in uninsured/underinsured motorist coverage. You may want to chat with an InsuraMatch advisor to discuss the value of your RV and your potential risks, so you can make sure you get adequate coverage here. Don’t let other people’s insurance plans dictate your RV protection, call us today at (844) 300-3294.

RV personal effects

Personal effects coverage helps protect the belongings inside your RV. This applies only to those items not permanently attached to your recreational vehicle, so any permanent fixtures like countertops or appliances would be covered under your comprehensive/collision insurances.

“Personal effects” includes electronics, some jewelry, clothing, food, and anything else you keep on your RV.

  • If you live in your RV, you’ll definitely need personal effects to protect your belongings. You’ll want to create a full inventory of your items, so you can ensure you have enough coverage for all of your belongings in the case of a total loss.
  • If you keep certain items on your RV all the time, like a television, you’ll want this on your RV personal effects list.

You’ll need enough personal effects insurance to cover all the items in your RV that aren’t already covered by your homeowners insurance. Even if your homeowners covers the item, you may want to include it on your RV personal effects as well if you use it frequently on the road.

RV supplemental insurance

Types of optional RV insurance to consider:

  • Custom equipment helps cover parts and equipment that were not installed by the manufacturer. If your RV were damaged and you did not have this policy, any “upgrades” to your vehicle wouldn’t be included in the payout.
  • Vacation liability helps cover specific bodily injury and property damage liability while you’re using your RV as a temporary residence while on vacation. This will typically raise your liability limits, since your risks are higher.
  • Roadside assistance helps cover expenses if you need towing, supply or fuel delivery, battery service, and flat tire or lockout service. This is especially useful for long road trips.
  • Safety glass replacement helps cover the repair or replacement of a broken windshield.
  • Awning replacement will specifically help cover your RV’s awning if it’s damaged or lost in a covered peril.

For each of these policies, most insurance carriers will only offer a few options for your limits. Your agent will be able to help recommend how much you may need for each policy based on your personal usage of the RV as well as any risks you face.

Remember that if you use your RV as a permanent residence, you’ll need a full timer’s insurance policy. Learn the difference between insuring an RV, motorhome, and camper here.

Do you have enough RV insurance?

You want enough RV insurance to help cover the cost of your RV in the event of a total loss as well as to protect all your assets from potential liability. Driving on the open road with your family and belongings with you, headed new places and experiencing new adventures, is one of the most freeing feelings in the world. Don’t let an accident ruin your lifestyle.

Get an RV insurance quote free right now. In less than 10 minutes, you can compare carriers and plans with the help of a licensed insurance advisor to find the right coverage for your RV and other insurance needs. Call (844) 300-3294 now!


Talk to an InsuraMatch advisor now at (844) 300-3294 to see if we can help you save on your RV insurance!

 

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