Rv Gap Insurance: Necessary Protection?

RV GAP insurance is a special type of insurance that is designed to protect motorhome owners from incurring losses that go beyond the RV's value if they are still making payments on their vehicle. GAP stands for Guaranteed Asset Protection and covers the difference between the amount owed on a vehicle and its actual cash value. This type of insurance is particularly relevant if you have financed your RV and are still making payments, as it can protect you from owing a loan balance even after an insurance settlement in the event of a total loss.

When is RV GAP insurance necessary?

RV GAP insurance is necessary when you are financing your RV and have less than a 20% down payment. In the first few years of ownership, the insurance value of your RV may be less than what you financed. If your RV is stolen or totaled, GAP insurance will cover the difference between what you owe and the actual cash value of the vehicle. This can save you from owing a loan balance even after an insurance settlement.

GAP insurance is also necessary if you are required to buy it as a stipulation of a lease. Some companies won't let you lease an RV without GAP insurance. It is also a good idea if you will be paying a loan that is greater than 60 months in length or if you will be living in your RV full-time. If you intend to add a lot of miles to your RV's odometer, GAP insurance can also be a wise investment as it can save you money in the event of a total loss.

Additionally, if you have bought an RV model known for quick depreciation, GAP insurance can provide valuable protection. GAP insurance can also offer peace of mind, even if you are financially able to cover the gap between the interest and principal without it.

How much does RV GAP insurance cost?

The cost of RV GAP insurance depends on the terms and the amount of coverage you require. If you get your GAP insurance "rolled into" your RV loan, it will add $2 to $20 per month to your monthly premium. Most policies will cost a one-time payment of several hundred dollars, with policies for more expensive RV models costing slightly more.

GAP insurance is a special type of insurance that protects motorhome owners from losses that exceed the RV's value if they are still making payments on their vehicle. It covers the gap between a vehicle's principle and interest-included price tags. It also covers the collision insurance deductible, fees on your loan, and total loss gaps from theft.

What does RV GAP insurance cover?

RV GAP insurance, or Guaranteed Asset Protection, is a special type of insurance that covers the difference between the amount owed on a loan and the actual cash value of the RV. This type of insurance is designed to protect motorhome owners from financial losses in the event of a total loss, such as an accident or theft.

In the event of a total loss, standard automotive insurance will only cover the current market value of the RV, leaving the owner with a gap between the insurance payout and the remaining loan amount. GAP insurance covers this difference, ensuring that the entire loan is paid off at the RV's full current market value. This can amount to a significant sum, potentially saving the owner tens of thousands of dollars.

In addition to the financial value of the RV, GAP insurance can also cover the collision insurance deductible, fees on the loan, and total loss gaps from theft. It is important to note that GAP insurance will only come into effect if the RV is deemed a total loss and will not cover repairs or medical bills.

The cost of GAP insurance for an RV can vary depending on the specific policy and the value of the RV. Some policies may charge a monthly fee, while others may require a one-time payment of several hundred dollars. It is also worth noting that GAP insurance is typically only available at the dealership when purchasing the RV and may be difficult to obtain after the initial purchase.

What doesn't RV GAP insurance cover?

RV GAP insurance is a special type of insurance that is designed to protect motorhome owners from incurring losses that go beyond the RV's value if they are still making payments on their RV. GAP stands for Guaranteed Asset Protection, and it covers the difference between the amount owed on the RV and its actual cash value in the event of a total loss. While GAP insurance can provide valuable protection, it is important to understand what it does not cover.

• Repairs not covered by insurance: If your regular insurance policy won't pay for repairs and the RV isn't deemed a total loss, GAP insurance will not cover the repairs.
• Roadside assistance: This is a separate insurance rider and is not included in GAP insurance.
• Medical bills: In the event of a collision, your standard vehicle insurance policy will cover medical expenses. GAP insurance does not cover medical bills.
• Destroyed belongings: Personal belongings inside the RV are not considered part of the RV's value and are not covered by GAP insurance.
• Gaps left past expiration dates: If your GAP insurance policy has expired but your loan remains underwater, you will not be covered by GAP insurance if you total your RV.
• Interest charged on the loan: GAP insurance will not cover any interest charged by the lender on the loan balance.
• Missed loan payments or late fees: GAP insurance will not cover any missed or late payments on the loan.

It is important to carefully review the terms and conditions of your GAP insurance policy to understand the specific exclusions and limitations. By understanding what is not covered, you can make an informed decision about whether RV GAP insurance is right for your needs.

Where can I buy RV GAP insurance?

RV GAP insurance is a special type of insurance that is designed to protect motorhome owners from incurring losses that go beyond the RV's value if they are still making payments on their vehicle. GAP stands for Guaranteed Asset Protection and covers the difference between the amount owed and a vehicle's actual cash value. It is a unique form of insurance that you can only really buy at the dealership.

• Progressive: For about $6 per month on average, you can get GAP insurance from Progressive. You can expect around 25% more than your car's depreciated value. Progressive also lets you compare policies from other providers and pick the most affordable one.
• Good Sam: One of the only insurance companies in America dedicated to RV insurance. They offer full-time motorhome insurance and storage insurance.
• EasyCare: The industry's only MOTOR TREND® Recommended Best Buy, with an A+ rating from the Better Business Bureau. EasyCare covers up to $50,000 of the gap between your insurance settlement and your loan balance, up to $1,000 of your insurance deductible, and loan terms up to 135% of your RV's value.
• Southeast Financial: Offers RV gap insurance plans designed to protect you in circumstances such as serious accidents and thefts, where your primary insurance may not be enough.
• American Guardian Warranty Services (AGWS): Headquartered outside Chicago, Illinois, AGWS offers vehicle protection products, limited warranties, and a range of environmental and aftermarket products across the United States. They have an A+ rating with the Better Business Bureau.

Frequently asked questions