Auto Insurance Coverage For Rvs: What You Need To Know

If you're planning to rent or buy an RV, you might be wondering if your auto insurance will cover it. The answer is: it depends. While some auto insurance policies may extend liability coverage to RV rentals, this is not always the case. It's important to check with your insurer to see if your policy includes RV coverage and what limitations there may be. If your auto insurance doesn't cover RV rentals, you may need to purchase separate RV insurance to protect yourself in case of accidents, damage, or theft. This type of insurance can also cover personal belongings and attached accessories, providing additional peace of mind during your travels.

Collision and comprehensive insurance

Comprehensive and collision insurance are two types of coverage that can be added to an RV insurance policy to cover physical damage to the vehicle. While comprehensive and collision coverage are not legally required for RVs, they are often mandated by lenders if you lease or finance your RV.

Collision Coverage

Collision coverage protects your RV from damage caused by a collision with another vehicle or object, such as a tree or fence, or a rollover accident. It covers repairs to your RV, regardless of who is at fault in the accident. Collision coverage may also include hit-and-run and single-vehicle accidents.

Comprehensive Coverage

Comprehensive coverage, on the other hand, protects your RV from events outside your control, such as theft, weather-related issues, vandalism, acts of nature, and hitting an animal. It covers repairs or replacement of your RV if it is damaged or totaled due to a non-collision event.

Choosing Coverage

If you own your RV outright and do not have a loan, comprehensive and collision coverage are typically optional. However, it is still recommended to consider these coverages to protect yourself from unexpected expenses in the event of an accident or damage to your RV. The decision depends on your finances, risk tolerance, and the value of your RV. Adding comprehensive and collision coverage will increase your monthly premium, but it can provide valuable protection for your investment.

RV insurance requirements by state

RV insurance requirements vary from state to state in the USA. While most states require liability insurance for recreational vehicles, the type and amount of coverage differ.

Motorised RVs

Motorised RVs, such as motorhomes, are treated like regular vehicles and are subject to the same insurance requirements. This includes a minimum amount of liability insurance, as well as bodily injury and property damage liability coverage. In many cases, you will need to have $20,000 of bodily injury insurance, $40,000 for collision/vehicular damage, and $10,000 for property damage.

Non-motorised RVs

Non-motorised RVs, such as trailers, campers, and fifth wheels, are often covered under the insurance of the towing vehicle. However, this means that the trailer won't be protected from theft, weather damage, or vandalism. It is recommended to extend the insurance of the towing vehicle to cover the trailer as well, or to get a separate plan for the trailer.

Full-time RV insurance

If you use your RV as your primary residence, you may need full-time RV insurance, which combines coverages found in traditional RV policies with those of homeowners or renters insurance policies.

RV insurance costs

The cost of RV insurance can vary depending on several factors, with some sources placing the range between $600 and $3,000 per year. According to Progressive, a recommended RV insurance provider, the average RV policy costs around $1,500 per year, or about $125 per month.

The cost of RV insurance depends on factors such as the type of RV, location, coverage level, driving history, RV experience, and credit score. Motorhomes are generally more expensive to insure than travel trailers. The largest type of RV, the class A motorhome, typically costs more for insurance than smaller classes. Newer and more luxurious RVs tend to be more expensive to insure than older and more basic models.

RV insurance rates also take into account personal factors such as your driving record and location. If you live in a highly populated area, your insurance cost may be higher due to the increased risk of accidents. Similarly, regions prone to extreme weather events or vehicle theft may result in higher insurance costs.

The extent of your RV usage can also impact the cost. If you use your RV for more than six months a year, you may need additional coverages similar to a homeowners insurance policy. The more you use your RV, the higher your policy's premium is likely to be.

You can save money on RV insurance by bundling policies, taking a safety course, and establishing a storage period when your RV is not in use. Additionally, a clean driving record and a good credit score can help you obtain more competitive rates and discount opportunities.

RV rental insurance

Some rental companies may include insurance in the cost of the RV's daily rental rate, so you may not have the option to go without it. The cost of RV rental insurance can vary depending on the vehicle's size, model, and coverage limits chosen, ranging from $15 to $30 per day.

If you are renting out your own RV, you will need two types of insurance: one that covers you during the rental period and another that allows you to rent outside of the rental period. Traditional RV insurance companies often do not allow renting and may deny claims or drop coverage if they find out. Specialty companies like Roamly offer insurance that allows renting and covers both rental and non-rental periods.

Full-time vs. part-time RV insurance

The type of insurance you need for your RV depends on how you use it. If you're a full-time RV user, your needs will differ from someone who only uses their RV occasionally. Insurance companies classify full-time use as more than 150 days per year, although this can vary.

Full-time RV insurance provides protection if you use your RV as your permanent residence. This includes broader coverages than a typical RV policy, such as personal liability coverage, medical payments coverage, and loss assessment coverage. For example, if someone is injured in or around your RV, personal liability coverage may cover their medical expenses. Medical payments coverage may also cover the costs if a visitor is injured while inside or near your RV. Loss assessment coverage may cover fees charged by an RV association for repairs to common areas.

Part-time RV insurance, on the other hand, is designed for those who use their RV intermittently, as a vacation vehicle. This type of insurance typically includes general liability protection, physical damage coverage, and personal effects coverage. Personal effects coverage protects against loss or damage to items you carry inside your RV, such as clothing, dishes, electronics, etc.

It's important to note that if your RV is towable, your auto insurance may already cover some aspects of its use. However, if you want better protection for your property, you will need specialised RV insurance.

Frequently asked questions