Before we get too far into this blog post, let me clarify that a Motorhome is usually covered under state mandated insurance laws just as an automobile is. Since it is a vehicle licensed for on-road use, there are specialized policies for motorhomes; therefore, the information below pertains more specifically to a RV or Camper.
Much like a boat, if your RV or camper is financed chances are your bank or other financial institute will require you to have insurance for the duration of the loan.
But, is it wise to drop that coverage once the recreational vehicle is paid off?
Here are a few good reasons not to…
Not Covered on your Auto Policy: Remember, if you’re pulling a RV or camper, your auto insurance may offer limited coverage while in tow. However, while parked there is no coverage for liability, comprehensive or collision without a proper insurance policy.
Have Roadside Assistance on your auto? Wonderful! Does it cover your RV or Camper also? Probably not. A specified policy can!
Not Protected under your Homeowner Policy: Many people feel their RV/Camper is covered for liability and contents under their home policy. Not necessarily so! As with your auto insurance, your home policy may offer limited coverage but it will not be as extensive as a specialized policy.
A good RV policy will offer Comprehensive, Collision (to protect your vehicle), Pet Injury and Vacation Liability coverage, which pays medical bills, etc. if someone is injured while visiting your campsite.
Other types of coverage available on a specialized policy include….
Emergency Expense Coverage: which pays for temporary living facilities, and transportation for you and the RV if you are more than 50 miles from home. There is usually a maximum benefit on this type of coverage, but hey, anything is better than nothing when the expenses would otherwise be coming out of your pocket!
Total Loss Replacement OR Agreed Value Coverage: which, in the case of a total loss and–depending on your policy and the type of coverage you have–your RV or Camper may be replaced with a new (or nearly new) model and/or up to the agreed value listed on the policy. Usually limited to one less than 5/10 years old.
No Depreciation Deductions: which means, in the instance of a partial loss, damage to the vehicle, personal effects, etc. are covered with $0 deduction for depreciation. This coverage may also pay for items stolen from your RV.
If these reasons are not enough to consider keeping your RV insurance once it is paid off, consider the discounts that may be available to you (multi-policy/bundling/etc.) if you do continue your coverage.
Before you decide to drop your insurance or if you’re in the market for a new RV/Camper, give us a call and let us make sure you are adequately covered. After all, the policies are normally reasonable enough it’s worth the cost just to have peace of mind!
Until next time, take care and remember to vacation smartly and safely.
Tommy Curtis and Staff
Is an insurance agent with integrity and your best interest in mind. Call to speak directly to him.
Address: 509 7th Street
Lake Charles, LA 70601
Office Hours: M-F 9a - 5p (CST)