Recreational Vehicle Insurance 101 What Is It & How Does It Work

It’s crucial to consider how your insurance requirements will change if you decide to buy or have already purchased a recreational vehicle (such as a motorhome, camper, or trailer).

Admit it, considering recreational vehicle insurance isn’t quite as exciting as considering the adventures that owning an RV makes possible. However, having adequate coverage does more than just safeguard your finances and those of your family; in some circumstances, RV insurance is mandated by law.

To assist you in making an informed choice, we will examine recreational vehicle insurance in more detail below.

RV insurance: What is it?

Motorhomes and other recreational vehicles are covered specifically by recreational vehicles insurance.

RV insurance offers many of the same types of coverage that you would anticipate finding in a car insurance policy, making it comparable to auto insurance in many respects. Depending on the nature of your policy, this could involve things like: Damage your RV causes to another person’s property or vehicle; damage your RV sustains in an accident or other covered occurrence; medical costs (for you and others) associated with an accident involving your RV; and legal costs.

What is covered by RV insurance?

The specifics of your RV insurance policy’s coverage rely on the policy you select, just like they do with vehicle insurance. Having stated that, the following coverage options are frequently accessible:

1. RV Collision Coverage

While operating your RV, collision coverage would pay for damage to the RV itself, assisting you in repairing or replacing the vehicle if you were to crash with another vehicle or a fixed object like a tree, fence, home, or other building.

Similar to auto insurance, Recreational Vehicle insurance typically covers the vehicle up to its actual cash value (ACV), which is its value at the time of replacement after taking depreciation into account. The compensation you get from your insurance company will typically be less than what it would cost to completely rebuild the vehicle.

Nevertheless, a lot of insurance companies provide total loss replacement cost insurance, which insures the car for its replacement cost rather than its ACV. Replacement cost coverage would guarantee that you could replace your RV if you were to suffer a total loss.

A lot of insurance companies now provide what is known as agreed value loss coverage, which enables you and your insurer to agree on the amount of coverage your car qualifies for. This type of coverage is frequently used for customized RVs, converted buses, and other vehicles.

2. RV Comprehensive Insurance

The purpose of comprehensive coverage is to protect your RV from losses and damages that don’t result from collisions or accidents. Theft and vandalism are frequently included in this, along with damage from falling branches, pebbles, and other debris, natural disasters, collisions with animals like deer, and more. Generally speaking, comprehensive coverage may offer you protection if damage to your RV results from a circumstance beyond your control.

Unless you get additional coverage, the amount paid out for comprehensive insurance will normally be based on the car’s real cash value. This is similar to collision insurance. Before comprehensive coverage begins, you must meet your deductible.

3. RV Liability Insurance

Liability insurance is intended to take effect if you are found to be at fault for an accident involving your RV and pay the costs for the parties involved. Liability insurance covers both injury to people outside of your car and damage to property (such as other cars, houses, buildings, landscaping, etc). (such as other drivers and their passengers).

Most states mandate that all vehicles, including recreational vehicles, carry a minimum amount of liability insurance.

4. RV Under- or Uninsured Motorist Protection

In a perfect world, every driver would have sufficient insurance to adequately protect not only themselves in an accident, but also any other parties involved.

But since we don’t live in a perfect world, it’s possible that you could get in a collision with an uninsured motorist or someone whose insurance won’t fully cover the costs of an accident for which they were at fault.

These situations are where uninsured/underinsured motorist coverage is intended to intervene. Depending on the state, this coverage may or may not be needed.

5. RV Medical Payments Insurance

Medical payments coverage would take effect if you or your passengers sustain injuries in an accident involving your RV and pay for related medical expenses. Usually, you get to choose how much medical payment coverage you want. Regardless of who was at fault for the collision, coverage is still in effect.

Do I need Recreational Vehicle insurance?

It depends. If an RV has a motor and is intended to be driven separately from another vehicle, it must be insured in accordance with the minimum coverage standards set forth by the state. This indicates that insurance coverage for the motorhome is typically necessary.

As a general rule, a state will also need insurance for a motorized RV if it mandates car insurance for privately owned passenger vehicles.

In contrast, coverage is often not required by law if your RV is made to be pulled by another vehicle, such a truck, even though it is still a smart idea. This group includes campers, travel trailers, and other towable RVs without onboard engines.

Consider your alternatives.

Most of the time, it may be in your best interest to purchase recreational vehicle insurance if you own a motorhome or other motorized recreational vehicle.

Your personal budget, capacity to absorb a shock expense in the case of an accident, RV service, risk tolerance, and the requirements of the state in which you reside will all play a role in determining exactly what kinds of coverage and how much coverage is appropriate for you.

Whether it’s vehicle insurance, homeowner’s insurance, or RV insurance, at JMJ Insurance, we want to make the insurance-buying process as simple, stress-free, and reasonable as we can. Ask us a few questions and give us a few minutes to generate your own customized price — give us a call today.