Just because your recreational vehicle (RV) travels the same roads as cars doesn’t mean you should share the same insurance coverage. At a minimum, every state requires the same amount of liability coverage for an RV as it dictates for a car. However, the minimum isn’t always your best choice.
Because an RV is essentially a home on the road – either temporarily or full-time – it necessitates a kind of hybrid policy that blends elements of both auto and homeowner policies.
Although exact coverage requirements differ by state, in addition to the liability coverage mentioned above, you may need a separate RV policy depending on your situation and type of vehicle.
What class of RV do you own?
Owners tend to use “RV” as a blanket description for three primary “recreational vehicle” classes:
Class A
- Luxury coaches (including converted buses) up to 75 feet long
- Typically include panoramic front windows, a living/dining area and bathroom
- Might include “slide outs” for additional living space when parked
Class B
- The smallest coaches
- Do not have space over the cab
- Class includes camper vans and pop-up vans
- May have a small kitchen with a small refrigerator or grill, as well as water heater, HVAC, portable toilet and internal shower
Class C
- Towable but not drivable
- Includes fifth-wheel vehicles
Coverage amounts differ by state, but if you own a Class A or B (both often called a “motorhome”), you will definitely need specific RV insurance. In addition – and regardless of class – you will need insurance beyond liability if you are still paying off your loan or do not own your RV outright. The same goes for an RV that you are renting.
Your insurance professional can provide an analysis of policy payments versus total loss before you buy so you can determine your full cost of ownership. After that, it’s up to you to decide how much financial risk you want to assume based on your usage and budget needs.
Even if you own a Class C towable that is paid in full and RV insurance isn’t mandated, don’t dismiss insurance without careful consideration. Although you may not be legally obligated to carry RV insurance, you do need to understand the cost of self-insuring. Would you be able to pay the cost completely on your own if your RV was physically damaged or your personal belongings on board were damaged or lost?
Whatever class of vehicle you own, the financial burden of having to pay 100% of these costs out of pocket may be too great a gamble, particularly if you use your vehicle often or live in it full-time.
Types of coverage
Liability insurance, which is necessary at a state-minimum level for all RV owners and renters, covers the costs of legal fees, property damage and medical expenses to any other person involved in an accident or incident with your RV for which you are found at fault. Liability coverage isn’t optional, but you may want to add these policy types as well:
- Uninsured/underinsured motorist: Some states require this in addition to liability coverage. It pays for property damage or medical expenses in excess of the cost covered by the other person at fault in an accident, either because they have no insurance or carry a very low level. This is particularly important if you travel to or live in a state with minimal auto insurance requirements.
- Collision: This reimburses for damage to your own RV if you collide with another vehicle or stationary object.
- Comprehensive: RV damage or losses caused by non-collision related incidents such as those from natural disaster, animals, theft, or vandalism are covered.
- Contents: This protects your onboard possessions.
- Towing and roadside assistance: This is particularly valuable if you have a large, specialized RV that could benefit from access to a network of expert service providers.
- Emergency expenses: If your RV is rendered unusable, you may be without transportation and a place to stay. This covers both.
- Total loss replacement: If you face a total loss, you would be reimbursed the value of your RV at purchase minus depreciation. If your loss occurs in the first five years of ownership, you will typically recover full replacement value without any depreciation subtracted.
- Campsite and vacation liability: This coverage kicks in for any legal fees, property damage or medical expenses that result when anyone outside of your family is injured in or near your RV when it is parked.
Other considerations
Your insurance professional can review the details, limits and exclusions of each policy choice. Premiums can always be reduced by accepting higher deductibles (the amount you need to pay for a repair or replacement before you receive any money from the insurance company), but it’s important to understand other things beyond the type, value and age of your RV that can impact your premium costs. These include:
- The miles you drive annually
- Whether you use the RV seasonally or live in it full-time
- Any custom features that should have additional protection
- The regions you travel
- Where your RV is parked or stored when not being used
- Past RV claims
- Prior speeding tickets or speeding violations
- Personal RV driving experience or qualifications
- Potential discounts for multiple policies with the same insurance carrier
If you aren’t asked about these above items directly, be sure to mention them before selecting your policy.
Travel with confidence
Owning an RV often comes with expenses you never considered when you first started imagining a carefree lifestyle on the road. While you may not have given much thought to insurance premiums, the right coverage can provide peace of mind and be an important part of your stress-free travels.
So take the time to evaluate your own RV insurance needs today. Then you can shift gears to do what famous infielder Babs Hoffman suggested instead: “Stop worrying about the potholes in the road and enjoy the journey.”
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.
