If you are the owner of a recreational vehicle (RV), you may be wondering if you need to purchase insurance for it. There are several types of RVs on the market. One type is a camper that is towed behind a vehicle. Another type combines the camper and vehicle, allowing you to drive it like a passenger car.
Usually, an RV that can only be towed will not require insurance, while RVs that are driven must have insurance. However, if the RV was acquired through a loan, a lender will usually require full coverage insurance regardless of whether it’s driven or towed.
The cost of RV insurance varies according to the value of the vehicle, the type of vehicle, its location, and how often it is driven. On average, a travel trailer has a premium of $502, while a motorhome premium totals between $800 and $1,500 per year.
Insurance on a motorhome could consists of the following policy types:
If you own a travel trailer, liability insurance will probably cover it as well, but you may need to purchase a separate comprehensive and collision policy.
In addition to the typical coverage offered for an RV insurance policy, you may need additional coverage that is specialized for these types of vehicles. Here are the common types of specialty coverage you can pursue:
If the RV is brand-new and has not been previously titled, it may be possible to purchase total loss replacement coverage. This type of coverage can vary, so it is important to read through the policy to ensure you have a full understanding of what total loss replacement coverage will cover. Other policies will cover the value of the RV up to an agreed-upon amount or for the actual cash value.
It is common for RV owners to customize the interior of their RV, especially if they use it primarily for living. Standard policies typically only cover up to $1,000 of custom equipment. If you have upgraded your RV extensively, it may be necessary to purchase a policy that provides more coverage for custom equipment.
A vacation liability policy will cover bodily injury and property damage up to an amount of $10,000 if you are using your RV as a temporary vacation residence. This type of insurance is usually only available to those who plan to use their RV exclusively for leisure.
It is very important to have roadside assistance coverage for an RV. In the case of a breakdown, it can be expensive to have an RV towed to a mechanic. Roadside assistance will generally cover:
Roadside assistance is usually available as an add-on to RV insurance policies.
Considering the high cost of owning an RV, it’s important to make sure you have ample financial protection in place in the case of an accident or damage to the vehicle.