Factors Affecting Insurance Costs For Class B Motorhomes

Motorhome insurance is a necessity for those who want to hit the road without a care in the world. But is it an expensive affair? The short answer is no. Class B motorhome insurance is, in fact, cheaper than most Class A or Class C motorhome insurance and, in many cases, even cheaper than car insurance. The average policy for a Class B motorhome costs between $500 and $1,000 per year. However, several factors influence the cost of insurance, such as the value of the motorhome, the level of coverage, and the usage of the vehicle.

The level of coverage you choose

Comprehensive and Collision Coverage:

Adding comprehensive coverage on top of liability protection will increase your insurance premium. Comprehensive coverage protects your Class B motorhome from damage caused by events other than collisions, such as fire, hail, fallen trees, theft, or vandalism. Collision coverage, on the other hand, protects your motorhome in the event of a collision, regardless of who is at fault. While not legally required, lenders often mandate these coverages if you are financing your vehicle.

Medical Payments Coverage:

This coverage will take care of the medical bills for you and your passengers in the event of an accident. This is especially useful if you lack medical insurance or if you need to be transported to a hospital outside of your coverage network due to serious injuries.

Uninsured or Underinsured Motorist Coverage:

This coverage comes in handy when involved in an accident with a driver who doesn't have sufficient liability insurance or none at all. It also applies in hit-and-run situations where the other driver doesn't provide their insurance information.

Content Coverage:

Content coverage will pay to replace or repair items kept in your motorhome if they are lost or damaged due to an accident, robbery, or vandalism. This is particularly useful if you keep valuable items such as laptops, cell phones, or televisions in your motorhome.

Full-Time RV Insurance:

If your Class B motorhome is your primary residence for a significant part of the year, you may want to consider full-time RV insurance. This type of policy is similar to a home insurance policy and covers personal liability, medical payments, loss assessment, and emergency expense coverage. While it adds to the cost, it is worth considering if you spend a considerable amount of time in your motorhome.

When choosing the level of coverage for your Class B motorhome insurance, it is essential to consider your specific needs and circumstances. Evaluate the risks and potential costs associated with each type of coverage to make an informed decision about which coverages to include in your policy.

The value of your motorhome

When determining the value of your motorhome, it is important to consider factors such as the make, model, and year of the vehicle. Certain brands, like Airstream, are known to hold their value better. Newer, higher-rated models will generally be valued higher than older, lower-rated ones. Larger motorhomes are typically valued higher than smaller ones, and low mileage is preferable to high mileage. The condition of crucial parts such as the engine and transmission also plays a role in value determination.

Well-maintained and updated interiors can add value to your motorhome, as can the number and quality of any extras included. It is also worth noting that the real value of your motorhome is whatever someone is willing to pay for it, and factors such as supply and demand can influence this.

To get an accurate valuation of your motorhome, it is recommended to speak to a specialist or use resources like the National Automobile Dealers' Association (NADA) website, which provides values for used motorhomes based on factors such as make, model, year, location, and optional features.

How often you use it

The cost of insuring a Class B motorhome depends on a variety of factors, one of which is how often you use it.

The more miles you drive your campervan annually, the higher your insurance costs will be. This is because each mile driven is another opportunity for an accident to occur, for which you may file a claim. So, if your motorhome is only used occasionally, your rates should stay lower.

On the other hand, if your motorhome is your primary residence for six or more months out of the year, you should purchase a full-time RV insurance policy. This type of policy works similarly to a home insurance policy and can add significantly to the price of your insurance. However, it is worth it if you spend a lot of time in your Class B motorhome.

Where you live

The location in which you live and keep your Class B motorhome can have an impact on your insurance costs. Different states have different minimum coverage requirements, and within a state, prices can vary depending on the city or neighborhood you live in.

If your area is prone to natural disasters such as floods, wildfires, tornadoes, or hurricanes, you can expect to pay more for comprehensive coverage. Similarly, if property crimes such as theft, vandalism, or arson are more common where you live, you will also pay more.

For example, in the US, Montana has higher-than-average car insurance rates due to residents traveling relatively long distances as part of their daily routine, meaning a greater likelihood of an auto accident. In contrast, Vermont, South Carolina, and Maine have some of the lowest average auto insurance rates, likely due to their predominantly rural populations with fewer vehicles on the road.

Additionally, if you live in a state with frequent hail storms, such as Oklahoma, you may pay higher insurance rates to cover potential damage.

Your driving history

Insurance companies assess risk when determining insurance rates, and a driving record with numerous examples of poor judgment and unsafe driving habits indicates that you are more likely to be involved in an accident or incident. As a result, insurance providers may view you as an unattractive customer and either refuse to offer coverage or charge higher premiums.

Serious moving violations, such as speeding tickets and DUI offenses, are strong indicators of risky driving behaviour and can lead to significant increases in insurance rates. The accumulation of multiple tickets will further escalate your insurance costs. Additionally, younger drivers, who generally present more risk to insurers, are more likely to experience dramatic premium increases due to moving violations.

It's important to note that insurance companies typically review your driving record when you apply for a new policy but may not do so during policy renewals. Therefore, minor violations may not always impact your insurance rates, especially if you already have an existing policy. However, major violations, such as DUI convictions, can cause your premiums to skyrocket or even result in your carrier refusing to renew your policy.

To maintain lower insurance rates, it's essential to obey traffic laws, avoid accidents, and drive safely. By keeping your driving record clean, you can minimise the chances of insurance rate hikes and maximise the benefits of your insurance coverage.

Frequently asked questions