RV insurance - the best for the lowest price

RV insurance takes many forms. We outline them and assist you to sort out what you need and what you don't.

Most of us need more than one type of RV insurance in our own country. If you cross into other countries, you may need to get even more policies. The joy of insurance.

Read the policy
Most insurance policies, even in "plain English", need to be decoded. If you don't read and understand the policy, you may pay more than you need to because you are paying for coverage you don't need. Or you may not be covered for what you need.

Where you live affects your policy options and what the policy is called. Some states require certain coverage such as for liability for injury to other people. In two places not far from each other you may find the same insurance policy called something different even though the purpose is the same. There are also different ways of mixing and matching modules of insurance.

So, here are the main forms of insurance for recreational vehicles:

  • personal injury liability insurance, which mainly covers damage and injury to the other person or persons involved in a collision. Goes by names such as bodily injury liability and in states where it is required as part of registering or licensing a vehicle, it may be called compulsory third party insurance.
  • Property liability or third party property insurance covers damage to an item (not to a person) other than your own property.
  • Liability for injury to a passenger in your vehicle or injury to someone other than you who is driving it.
  • Collision
  • Contents - your possessions and sometimes the additions you have made to the RV
  • Valuables and portables - laptops, jewelry, artworks, cameras, wallet, purse, credit cards and all sorts of things people carry.
  • Comprehensive, which covers all of the above - supposedly. It may also include accessories and tow dolly & trailer coverage - check with the insurer.
  • Mechanical breakdown insurance also called roadside assistance insurance or roadside & travel insurance. This is not usually covered by comprehensive, except in some clubs or associations.
  • Mechanical repair or warranty extension covers repairs at a service centre or workshop. This is usually bought at the same time as the RV, although some is available separately. This is not usually covered by comprehensive.

Cutting the cost of RV insurance

There are ways to reduce insurance costs. Some of them involve cutting corners. Some don't involve cutting corners. When it comes to a dispute between you and the insurance company over any cut corners, who do you think will win? Cutting corners saves in the short term but costs when it counts. The insurance company will usually trim any payout to match the corner that you cut. It may even refuse a payout or cut it by a greater percentage.

However, there are some ways to cut costs without damaging your RV insurance cover. They include:

  • Risk sharing - with:
    • a primary payment, excess or deductible (see below)
    • exclusion: Don't insure things that aren't worth insuring or that are unlikely to need repair or replacement - make sure the value is deducted from the policy and that this does not affect the coverage on the rest of the RV.
  • Reduced payout:
    • The most common form is a fixed value payout. If the vehicle is considered a write-off the company pays you a specific sum rather than the market price of a similar vehicle that hasn't had a collision.
    • Excess or deductibles: You pay a percentage or a fixed amount as part of any claim, the insurance company pays the rest. This means that smaller claims do not get made, saving the insure mony. Plus you are indicating that you will share the risk so there is an incentive not to claim.
  • Make the insurance company see you as larger than just an individual being insured:
  • Shop around and get the best deal from a reputable company
  • Use an insurance broker who can negotiate a better deal, find a more suitable policy or use their greater bargaining power to keep your price low.
  • Use the internet to find comparable policies before you get too far along the process. This gives you knowledge about what is out there and allows you to bargain more effectively and get the best value RV insurance cover.

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