When purchasing RV insurance you should know:
- The types of coverage available
- Limits of coverage available
- Deductibles
- Other options available
Unlike automobiles, motorhomes and RVs have special "built-in" appliances and equipment, and the possibility exists that one might be away from home when a loss occurs. Coverage should be purchased from an RV specialty insurer.
A brief description of coverages generally available for Recreational Vehicles offered by Auto Insurance America:
BODILY INJURY LIABILITY
If you are partially or totally at fault for an auto accident, this coverage pays for bodily injury to others. Damages you may be responsible for include medical bills, lost wages, replacement services, loss of life, permanent disability or impairment, pain and suffering, legal expenses, and other expenses allowable by law. Financial responsibility laws of most states make certain minimum limits of this coverage mandatory.
Bodily Injury Liability provisions of most auto insurance policies cover a utility trailer being towed by an insured vehicle. Check with your agent on any coverage questions.
Any serious injuries will easily exceed state minimum liability limits. You can be sued and held personally responsible for damages above the liability limits of your insurance policy, so if you own a home or property or have any assets to protect, you would be wise to purchase higher limits of bodily injury liability insurance coverage rather having to file bankruptcy or paying off large legal judgements for years.
RV insurance is generally inexpensive, if the RV is used strictly for vacation or recreational use. Motorhomes and large travel trailers, due to their size and weight, can cause tremendous damage to others, therefore high liability limits should be seriously considered.
PROPERTY DAMAGE LIABILITY
If you are partially or totally at fault in an auto accident, this coverage pays for property damage to others, including but not limited to use of a rental cars while their vehicle is out of service, loss of business income if related to the accident, and damage to property other than vehicles, for example if you knock down a light pole or a fire hydrant.
Property Damage Liability provisions of most auto policies cover a utility trailer being towed by an insured vehicle. Check with your insurance agent on any coverage questions.
Be aware that your RV could hit many expensive vehicles and objects out on the road. State minimum liability limits may be inadequate to pay for damage to an expensive vehicle or other property damage. You can be sued and be held personally responsible for property damage above the limits of your policy, so if you own a home or property or have assets to protect, you would be wise to purchase higher than minimum property damage liability limits rather than having to file bankruptcy or paying off large legal judgments for years.
PHYSICAL DAMAGE COVERAGE
Commonly known by several names, comprehensive, collision, car damage, physical damage, these coverages repair your vehicle in the event of loss by fire, theft, windstorm damage, flood damage, glass breakage, collision with another object, or many other events that could ruin your day. Because motorhomes and RVs have special "built-in" appliances and equipment, and you may have a loss away from home requiring special assistance, physical damage coverage should be purchased from an RV specialty insurer.
Physical Damage Coverage is generally sold with a choice of deductibles. Deductibles are dollar amounts that you agree to pay for each loss, before your insurance "kicks in," so you are "self insuring" and will pay "out of pocket" for damages below your deductible.
You can’t save up all the dings and other damage to your vehicle and get them repaired under one deductible. Insurers offer a variety of deductibles generally from $50 to $1,000. Because you are "self insuring" and paying, "out of pocket," all amounts below your deductible, you can save substantial dollars in your insurance premiums by selecting higher deductibles. If your vehicle is financed or leased, the loan or leasing organization usually limits the deductibles (listed in your contract) they will accept.
If you have a late model RV or your RV is financed or leased, you will likely need physical damage coverage to repair or replace your RV in the event of loss. You can save premium dollars by purchasing a higher deductible on your policy, but remember, if your vehicle gets damaged, you will "fork out" the amount of the deductible you choose, so don’t choose deductibles so high that you will wind up in a "financial pinch," even though you have insurance.
MEDICAL PAYMENTS COVERAGE
Medical Payments coverage covers you, resident members of your family, and occupants of your RV for medical expenses incurred in an auto accident, regardless of who is at fault. Optional limits of coverage are available, depending on the insurer.
Medical costs are outrageous and RV medical payments coverage is usually offered in limited amounts. If you have good health insurance coverage for your family, you may decide to purchase a limited amount or none of this coverage. Although you don’t know what type of medical insurance, if any, a guest passenger may have, your bodily injury liability coverage would cover medical bills of a guest passenger if you are legally responsible for an accident. If you don’t have good medical insurance for your family, you should consider higher limits of medical payments coverage.
UNINSURED/UNDERINSURED MOTORIST COVERAGES
This coverage covers you, resident family members, and occupants of your vehicle, for injuries as a result of an auto accident where the other party is at fault, but has no insurance or inadequate insurance to pay for all damages. You and other covered persons collect from your own insurer for the damages you are legally entitled to, above and beyond the limits of the other party’s insurance.
In most states, uninsured/underinsured motorist coverage does not pay for damage to your vehicle. You must purchase physical damage coverage to pay for damage to your vehicle.
In New Mexico, uninsured motorist property damage coverage is available to protect damage to your property caused by an uninsured motorist. Check with your agent for coverage and premium rates.
This is an important coverage and the cost in most cities is reasonable. Obviously, since this coverage pays for damages caused by an uninsured or underinsured motorist, if you live in a city with a high percentage of uninsured motorists, premium rates will be higher. You can purchase limits of this coverage, up to the limits of the bodily injury liability coverage of your policy. Most state laws make this coverage mandatory, unless you sign a specific rejection of this coverage. Auto Insurance America recommends that you purchase this important coverage.
PERSONAL INJURY PROTECTION OR NO-FAULT INSURANCE
Some states have "no-fault" insurance laws, which vary substantially. While it would be too lengthy to cover this subject, briefly "no-fault" insurance promptly pays the medical bills, wage loss, and replacement services of a party injured in an auto accident, regardless of who is at fault. In most "no-fault" states, the right to sue for minor injuries is restricted. Limits of minimum and optional coverage available and the "right to sue" vary between the states.
TOWING AND LABOR COVERAGE
Towing and Labor coverage is usually limited to a specific dollar amount per incident, this coverage is inexpensive and may be helpful if your RV is disables as a result of a covered loss. Towing of RVs can be very expensive due to their size and weight and the distance to the nearest repair facility.
INSURANCE POLICY EXCLUSIONS
Remember, insurance policies don’t cover all situations. There is no such thing as "full coverage." Policy exclusions exist in all insurance policies and they eliminate or restrict coverage. Read your policy carefully and if you have any questions, check with your agent. Because insurance policies vary between insurers, your agent will be most familiar with your policy.
