More than half of all RV owners may not have the right coverage

If your client bought a tractor-trailer or an airplane, you probably wouldn’t put either on their car insurance policy, since both are specialty vehicles and require specialized coverages and claims handling, right?

Then why, when asked, do more than half of RVers surveyed report having added their RV to their car insurance policy?

“We don’t know why, but we do know why they shouldn’t,” said Cathy Pelfrey, RV product manager, The Progressive Group of Insurance Companies, a provider of RV insurance in the United States. “There are vast differences in coverage and services available from companies that specialize in recreational vehicle insurance that owners need to be aware of. We recommend they check with a local independent insurance agent or do research online to find out what’s available so they can make the decisions that are right for them.”

Below are a few possible scenarios where having specialized RV coverage could benefit the insured.

What if the RV breaks down?

While a lot of car insurance policies offer roadside assistance, an auto policy may not offer it for an RV. Even if it covers some roadside expenses for RVs, it may not cover them all. For instance, it may pay for towing but only up to the amount it would typically cost to tow a car; RV tows can cost three times more.

Specialty insurers will generally also offer “emergency expense” coverage that will pay for temporary living quarters if the RV breaks down far from home. This kind of coverage will also generally cover the cost to return an RV home from a wreck or breakdown that happens more than 50 miles from home.

What if the RV is stolen or totaled?

Auto policies will likely pay actual cash value (ACV) for the RV, however, most specialty insurers will offer a choice of how this kind of claim could be handled. Some will offer the choice of an agreed value settlement, where the insured and the insurance company agree, up front, what the RV is worth. If the RV is stolen or totaled, that’s the amount the insured will receive, less whatever deductible they chose when they bought the policy. Specialty insurers may also offer total loss replacement coverage that will provide the insured with a new RV in the event their RV that’s five years old or less is stolen or totaled.

What if the RV is involved in a crash?

An auto insurance company will typically have someone who normally handles car insurance claims come to evaluate the damaged RV. But if the insured has coverage for the RV through a specialty insurer, the claims rep will be trained in how to look for damage and estimate what it will cost to repair. Specialty RV insurers also work with repair facilities that know how to repair an RV and guarantee their work.

What if personal property is stolen?

Insureds may keep things inside their RVs that they never would keep in their cars, like jewelry, binoculars, VCRs, laptops, camcorders or outdoor gear. An auto policy won’t pay to replace these items if they’re lost, stolen or damaged but specialty insurers offer “personal effects” coverage that will pay to replace them if they’re used in conjunction with the RV.

What if someone gets injured at the insured’s RV campsite?

When an insured parks their RV at a campsite, they may be liable for the area around their RV. This means that if someone trips and falls they could be responsible for their injuries, which generally won’t be covered by their car insurance policy. If they insure their RV with a specialty insurer, injuries can be paid for under vacation liability coverage, which pays up to the limits that they selected when they bought the policy for injuries they’re legally responsible for as a result of an accident that occurs while the RV is being used as a temporary vacation residence.

Topics Carriers Auto Excess Surplus