Insurance Basics

Here’s a primer to help you understand the importance of getting the right coverage for you and your motorhome.

Article and Photographs by Steve Blume

According to Murphy’s law, “Anything that can go wrong, will go wrong.” As RV owners, we tempt fate every day, propelling a massive luxury home on wheels down the road at highway speeds, then ending the day in a campground maneuvering between cars, trees and walls to park it. What could possibly go wrong?

The agent you choose to insure your Tiffin may be the same one who handles your home and autos, or he may be a voice on the line from a national call center. He may be an agent who is contracted to work for one insurance company (State Farm, Allstate, Liberty Mutual, Geico, etc.) and can only sell that company’s policies, or he could be an independent agent who is contracted to work with a variety of insurance companies and can sell policies from multiple providers. For example, Roamly specializes in RV coverage and can quote multiple carriers simultaneously, including Foremost, Safeco, National General, Progressive and their own company. Regardless of who you choose, everyone selling insurance is regulated, trained and has passed the required certifications.

Prices and Rates

Price is king, right? People are quick to trash an insurance company or brag about the price of their coverage, but what does that price include? What are the limits, deductibles and add-ons? They claim this insurance company is better than that one, or shout about how they were wronged by a different company. I can’t help but shake my head.

Carriers have things they like, called their “appetite,” and getting with the one who targets your situation best gets you the lowest price. For example, some companies will not write full-time RVs, while others aggressively pursue those customers. Some really prefer new motorhomes.

Rates must be filed by insurers in each state detailing how they establish the rate class, the qualifiers, surcharges and the discounts. These rate classes may consider credit score, home ownership, bundling with other items, prior claims, how the policy is being paid for and even things such as marital status. This guarantees that every consumer is treated fairly and equitably, and explains how two owners with identical coaches could have substantially different rates. An agent cannot negotiate pricing on your behalf, they can only present your information accurately to insurance companies and help you navigate potential discounts to lower your rate. The only way to know if your situation is attractive to another company is to get quotes and compare.

Important Documents

When you purchase coverage, your insurance company will provide a Declarations Page, which lists the drivers, dates of coverage, VIN, policy limits (maximum coverage for each item), any add-ons or special notes, and the price you are paying. This is an easy-to-understand summary of all your coverage.

You will also receive a multi-page Policy Document that describes in detail what is covered and what is not, how claims are determined and paid out, and any conditions. The purpose of insurance is to spread the risk of loss over a large group, making it affordable for the individuals in that group to be protected against a catastrophic loss. Multiple claims in five years, even small ones, can make you uninsurable. Insurance is structured to make you whole after a loss, not put you ahead. Insurance companies are in the business of paying claims, but only for things in the policy they agreed to cover and for which you paid them a premium.

Coverages

If you cause an accident and hurt someone or their property, Liability coverage pays for it. It covers bodily injury, when you injure someone, and/or property damage, which repairs vehicles of others damaged due to your negligence, but it does not cover your vehicle. If you have substantial assets to protect, you should strongly consider having a Personal Umbrella Policy (PUP). This is a powerful addition at a fairly low cost. Ask your agent to explain the benefits.

Here are other common coverages:

• Collision Coverage will pay for repairs to your motorhome if you’re in an accident, regardless of who’s at fault. This coverage will have a deductible, the amount you agree to pay before the insurance pays. Selecting a higher deductible will result in a lower rate.

• Comprehensive Coverage, on the other hand, pays for damage to your motorhome from non-accident-related events like natural disasters, theft or vandalism.

• Glass Coverage replaces windshields and may be listed separately and with a different deductible.

• Uninsured/Underinsured Motorist Coverage protects you if you’re in an accident with a driver who doesn’t have insurance or enough coverage to repair your RV.

• Personal Property Coverage replaces all your personal belongings inside your motorhome up to the amount you list. Imagine turning your RV upside down and shaking it. What would fall out? What would it cost to replace all that?

Add-ons and Total Loss

There are numerous add-ons to RV policies, including Vacation Liability Coverage which offers liability protection while you’re parked at a campsite, Full-Timer’s Coverage, Mexico Coverage, Pest Coverage for damage caused inside by animals, and even Roof Replacement Coverage. If you live in your RV full-time and it is unusable, Emergency Expense Coverage helps with lodging and transportation costs. Understand what the coverage means, and the cost of adding these. Most companies include Roadside Assistance as an option to help with towing, flat tires and other roadside issues, but many RV owners elect to purchase beefier stand-alone roadside assistance policies.

If your RV is deemed a total loss after an accident, most policies pay out based on Actual Cash Value (ACV), a depreciating amount. If you have a new coach, look for a company that offers Total Replacement Coverage, which insures up to your purchase price.

Every situation is different, and the specific coverage you need depends on your motorhome’s value, how you use it and your personal situation. Ask a lot of questions when you are talking to an agent and make sure they have all the correct information. Reading your insurance policy is guaranteed to put you right to sleep, but once you do, you can sleep better!

8 Ways to Protect Against the Unexpected

1. Get multiple quotes

2. Review your Declarations Page

3. Take advantage of available discounts

4. Consider a Personal Umbrella Policy (PUP)

5. Do not submit small claims

6. Understand what each add-on covers

7. Review Roadside Assistance details

8. Read your policy!