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Protecting Your Home on Wheels: The True Cost of RV Insurance

Jake

Aug 28, 2023 • 11 min read

Embarking on a road trip with your RV or camper is a delightful experience that many cherish. The allure of the open road, the promise of scenic vistas, and the joy of exploring new places from the comfort of your home-on-wheels make every journey memorable. However, while the adventures are filled with excitement, there's an essential aspect that often takes a backseat but is crucial for every RV owner - insurance.

Just as you wouldn't drive a car without insurance, you shouldn't hit the road in your RV or camper without ensuring it's properly covered. The open highways bring their own set of challenges, and while we all hope for smooth journeys, it's always best to be prepared. In this guide, we'll walk you through the intricacies of RV insurance costs and the practical aspects every camper should consider.

What Influences RV Insurance Cost?

RV insurance costs can vary widely based on a range of factors. It's not just about the type or size of your RV or camper; insurance companies consider a combination of elements to determine the risk associated with insuring your vehicle. Here's a more detailed look:

Type of RV or Camper:

Class A Motorhomes: These are typically the largest and most luxurious, often including amenities akin to what you'd find in a home. Given their size and value, they tend to have higher insurance costs.
Class B & C Motorhomes: Smaller than Class A, they're more like larger vans with essential amenities. Their insurance is generally less expensive than Class A but more than towable RVs.
Towable RVs: This category includes fifth-wheelers, travel trailers, and pop-up campers. Their insurance costs are often lower than motorhomes since they don’t have their own engine and are towed by another vehicle.
Example: Insurance for a Class A motorhome might cost around $2,500 annually due to its size and amenities. In contrast, a smaller Class B motorhome might cost $1,500, and a towable pop-up camper could be around $800 per year.

Usage:

Full-time vs. Part-time: If you're using your RV as a full-time residence, insurance costs might be higher due to increased risks associated with continuous use. Part-time or recreational users might see lower premiums.
Rental: Renting out your RV when you’re not using it? This can influence your insurance cost, as it introduces additional liabilities and potential wear and tear.
Example: If you're using your RV as a full-time residence, your insurance might be around $3,000 annually due to the increased risk of continuous use. For occasional use, the same RV might have a premium of $1,800.

Driving Record:

A clean driving record without accidents or violations can earn you discounts. On the other hand, a record marred by multiple incidents might signify higher risk to insurers, leading to increased premiums.
Example: An RV owner with a clean driving record might receive a premium quote of $1,500 annually. Another owner with a recent at-fault accident and a speeding ticket might receive a quote of $2,200 for the same RV.

Storage and Location:

Storage: Storing your RV in a secured facility or garage can lead to lower premiums compared to leaving it outside exposed to potential damage from weather or theft.
Location: Rates can vary significantly by state and region. Areas prone to natural disasters, high theft rates, or with higher traffic density might have higher insurance costs.
Example: Storing your RV in a secured indoor facility in a region with a low risk of natural disasters might cost $1,400 annually. The same RV stored outdoors in a hurricane-prone area might have an insurance cost of $2,300.

Age and Condition of the RV:

Newer RVs with the latest safety features might cost more to insure due to their higher value. However, they might also qualify for safety discounts. Older RVs, especially if not well-maintained, could be viewed as riskier.
Example: A brand-new RV with a value of $100,000 might have an annual premium of $2,500. An older model of the same RV, valued at $50,000 and showing signs of wear and tear, might cost $1,800 to insure.

Coverage Options:

The broader and more comprehensive your coverage, the higher the cost. For example, adding riders for personal property, emergency expenses, or roadside assistance will influence the overall premium.
Example: Opting for basic liability coverage might result in a premium of $1,200 annually. However, adding comprehensive, collision, and additional riders might increase the annual premium to $2,800.

Deductible Amount:

Choosing a higher deductible (the amount you pay out of pocket before insurance kicks in) can reduce your premium. Conversely, a lower deductible might increase it.
Example: An RV insurance policy with a $500 deductible might come with an annual premium of $2,000. Raising the deductible to $1,000 could reduce the annual premium to $1,750.

Past Claims:

If you've previously made claims, especially significant ones, insurers might view you as a higher risk, which could elevate your premium.
Example: An RV owner who hasn't made any claims in the past 5 years might receive a premium quote of $1,500. Another owner with two claims in the past 3 years for the same RV might be quoted $2,100.

Understanding these factors can provide clarity when you receive a quote and empower you to make decisions that might lead to cost savings. When shopping for insurance, it’s beneficial to have a grasp on these elements to ensure you’re getting the best deal without compromising on essential coverage.

Types of Coverage

When it comes to RV and camper insurance, it's essential to understand the different types of coverage options available. This ensures that you’re adequately protected against various risks associated with road travel and stationary use. Here's a detailed breakdown of the types of coverage you might consider:

Comprehensive Coverage:

What it covers: This coverage protects against damage to your RV from non-collision-related incidents. This includes events like theft, fire, vandalism, storms, or contact with animals.
Why it's important: Comprehensive coverage ensures that you're protected against unexpected damages that can be costly to repair, especially those not related to driving accidents.
Example: You've parked your RV at a campground, and a hailstorm causes damage to the roof and windows. The repairs amount to $4,500. With comprehensive coverage and a $500 deductible, your insurance would cover $4,000 of the repairs.

Collision Coverage:

What it covers: This takes care of damages resulting from a collision with another vehicle, object, or even if the RV rolls over.
Why it's important: Collisions can lead to significant repair costs. This coverage ensures you're not left bearing the full brunt of these expenses.
Example: While backing your RV into a site, you accidentally hit a tree, causing damage to the rear end. The repair estimate is $3,000. With collision coverage and a deductible of $600, you'd be responsible for the deductible amount, and insurance would cover the remaining $2,400.

Liability Coverage:

What it covers: If you're found at fault in an accident, this coverage will handle bodily injury and property damage you might have caused to others.
Why it's important: Accidents can lead to lawsuits and hefty compensation demands. Liability coverage protects your financial well-being in such scenarios.
Example: While driving your RV, you unintentionally side-swipe another vehicle, causing $5,000 worth of damage to it. Additionally, the driver of the other vehicle has medical bills of $2,000. If you have liability coverage of up to $10,000, your insurance would cover these costs.

Uninsured/Underinsured Motorist Coverage:

What it covers: Provides protection if you're involved in an accident with someone who doesn’t have insurance or doesn’t have adequate coverage.
Why it's important: Not everyone on the road will have sufficient insurance. This coverage ensures you're not left with high costs due to someone else's negligence.
Example: Another motorist, who doesn't have sufficient insurance, rear-ends your parked camper, causing damage of $7,000. Your uninsured motorist coverage, with a limit of $10,000 and a deductible of $500, would pay $6,500 towards repairs.

Total Loss Replacement/Purchase Price Guarantee:

What it covers: In the event your RV is deemed a total loss, this coverage either offers a new, comparable RV or compensates you for the purchase price.
Why it's important: Depreciation can affect the value of your RV over time. This coverage ensures you get a suitable replacement or fair compensation, rather than just the depreciated value.
Example: A year after purchasing your RV for $80,000, it gets stolen and isn't recovered. With total loss replacement coverage, your insurance would provide you with a new, comparable RV or pay you the original purchase price, depending on your policy details.

Vacation Liability:

What it covers: This is specific for when your RV is parked and used as a temporary residence. It protects against injuries that might occur in or around your RV during your vacation.
Why it's important: When parked, your RV becomes more like a temporary home. This coverage acts like a home liability policy, covering incidents that can occur in such settings.
Example: While your RV is parked at a campsite, a fellow camper trips over your outdoor rug and breaks their wrist, incurring medical bills of $3,500. If you have vacation liability coverage of up to $10,000, this would cover the injured party's medical expenses.

Medical Payments:

What it covers: This pays for medical expenses for you and your passengers if injured in an accident, regardless of who's at fault.
Why it's important: Medical bills can escalate quickly. This coverage assists in ensuring that treatment costs don't drain your finances.
Example: During a sharp turn, a passenger in your RV falls and requires medical attention, resulting in bills of $1,200. If you have medical payments coverage of up to $5,000, this would cover the medical costs.

Roadside Assistance:

What it covers: If your RV breaks down, this coverage will handle towing, flat tire changes, battery jump starts, and even some minor repairs or fuel delivery.
Why it's important: RVs, given their size and complexity, can be challenging to handle in case of breakdowns. Roadside assistance offers peace of mind during such incidents.
Example: While traveling across a remote area, your RV gets a flat tire. The nearest service station is 50 miles away. With roadside assistance coverage, your insurance would cover the costs of sending a technician to replace the tire or tow your RV to the nearest facility.

Choosing the right mix of coverage ensures that your RV adventures remain enjoyable without the constant worry of potential financial setbacks. It's always wise to discuss with an insurance agent to tailor coverage to your specific needs and usage patterns.

Cost-Saving Tips for RV and Camper Insurance

Insurance for your RV or camper doesn't have to break the bank. While it's essential to have adequate coverage, there are several strategies you can employ to save on insurance costs without compromising on the protection you need. Let's dive deeper into these cost-saving tips:

Bundle Insurance:

How it works: Many insurance providers offer discounts when you bundle multiple policies with them. For instance, you could bundle your RV insurance with your auto, home, or boat insurance.
Why it's effective: Insurance companies value customer loyalty and often provide incentives in the form of discounts to those who hold multiple policies.
Example: Let’s say your auto insurance costs $1,200 annually and your initial RV insurance quote stands at $800. By bundling, your insurer offers a 15% discount on each. You save $180 in total ($120 from auto and $60 from RV), reducing your combined annual premium to $1,820.

Increase Deductible:

How it works: By choosing a higher deductible (the amount you pay out of pocket before insurance kicks in), you can often reduce your premium.
Why it's effective: A higher deductible reduces the insurance company's liability in the event of a claim, thus leading to lower premiums. However, always ensure you can afford the deductible in case of an incident.
Example: By raising your deductible from $500 to $1,000, you might reduce your annual premium from $800 to $700, saving $100 annually. Remember, this means you'll pay more out-of-pocket in the event of a claim.

Safety Discounts:

How it works: Some insurers offer discounts for RVs equipped with safety features like anti-theft devices, rearview cameras, or alarm systems. Additionally, completing RV safety courses can sometimes lead to discounts.
Why it's effective: Safety features and training reduce the risk of accidents or theft, making you a less risky proposition for insurers.

Shop Around:

How it works: Don’t settle for the first quote you receive. By getting multiple quotes, you can compare rates and coverage to find the best deal.
Why it's effective: Insurance rates can vary significantly between providers due to different underwriting criteria, coverage options, and discount offerings.

Claim-Free Discounts:

How it works: If you haven't made any claims over a certain period, some insurers might offer you a discount.
Why it's effective: A claim-free history indicates responsible ownership and reduced risk for the insurer.

Pay in Full:

How it works: Instead of monthly payments, some insurers offer a discount if you pay your premium in full for the year.
Why it's effective: This reduces administrative costs for the insurer and guarantees them the full premium upfront.
Example: If your monthly RV insurance premium is $70, over 12 months, you'd pay $840. However, if you choose to pay annually, your insurer offers a 5% discount, making the total $798 — a saving of $42.

Storage Options:

How it works: If you're storing your RV or camper for an extended period (e.g., during winter), some policies might offer "storage-only" coverage at reduced rates.
Why it's effective: The risks associated with a stationary RV are different (and often lower) than one frequently on the move.
Example: During winter months when you're not using your RV, you opt for "storage-only" coverage, reducing your monthly premium from $70 to $40 for 4 months. This saves you $120 during the storage period.

Membership & Affiliation Discounts:

How it works: Being a member of RV clubs, associations, or even certain professional organizations can sometimes fetch you a discount.
Why it's effective: Insurers often form partnerships with these organizations to offer exclusive discounts to members.

Review Coverage Annually:

How it works: As your RV ages or your usage patterns change, you might not need as much coverage as before. Reviewing your policy annually can help you adjust coverage and potentially reduce costs.
Why it's effective: Ensuring your coverage aligns with your current needs prevents you from overpaying for unnecessary protection.

Owning an RV or camper is like having a ticket to endless adventures. Imagine driving a Class A motorhome, which might cost you around $1,000 to $3,000 annually in insurance. While this is an investment, it's crucial to safeguard the $100,000 or more that you've spent purchasing the RV. And as you journey from the Grand Canyon to the scenic routes of the Pacific Northwest, mishaps can occur, like that unfortunate fender bender in a parking lot, costing $1,500 in repairs. With adequate insurance, you might end up paying only a $500 deductible instead of the entire repair cost.

Understanding the nuances of insurance, such as realizing that increasing your deductible from $500 to $1,000 can save you around $100 annually, can make a significant difference in your overall travel budget. So, as you map out your next expedition, factor in these numbers. The peace of mind from knowing you're adequately covered will make those sunsets at the beach and campfires under the starry sky even more enjoyable.

By being proactive and employing a combination of these strategies, you can ensure that you're not only well-protected on the road but also getting the best value for your money. Remember, the cheapest policy isn't always the best; aim for a balance between cost and comprehensive coverage.

Summing Up

The allure of the open road, the ever-changing landscapes, and the unique bonding experiences that RVs and campers offer are unparalleled. However, alongside the adventures and the memories, there's a responsibility to ensure that your home-on-wheels is adequately protected. Insurance isn't just a legal requirement; it's a safety net, ensuring that unforeseen events don't derail your journey or plunge you into financial distress.

Navigating the intricacies of RV and camper insurance can initially seem daunting. Still, with a clear understanding of the influencing factors, types of coverage, and cost-saving measures, you can make informed decisions tailored to your needs. It's all about striking a balance between ensuring adequate protection and managing costs. So, as you prepare for your next great adventure, do so with the confidence that your RV or camper is well-protected, letting you focus on the open road and the memories waiting to be made.