Survey Says: More Than Half of All RV Owners May Not Have the Right Insurance Coverage

MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--If you bought a tractor-trailer or an airplane, you probably wouldn’t put either on your 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 leading seller of RV insurance in the U.S. “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.”

For example, what if…

Your RV breaks down on a trip?

While a lot of car insurance policies offer Roadside Assistance, your policy may not offer it for your RV. And, 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, which means out-of-pocket expenses you’ll be responsible for paying.

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.

Your RV is stolen or totaled?

Your auto policy will likely pay Actual Cash Value (ACV) for your RV—that’s the market value as determined by third-party sources. However, most specialty insurers will offer you a choice of how you’d like this kind of claim handled. Some will offer you the choice of an agreed value settlement, that is, you and the insurance company agree, up front, what the RV is worth. If the RV is stolen or totaled, that’s the amount you’ll receive, less whatever deductible you chose when you bought the policy. Specialty insurers may also offer you Total Loss Replacement coverage that will provide you with a new RV in the event your RV that’s five years old or less is stolen or totaled.

Your RV is involved in a crash?

Your auto insurance company will typically have someone who normally handles car insurance claims come look at your RV. But, if you insure your RV with a specialty insurer, your 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.

The stuff in your RV is stolen?

You may keep things inside your RV that you never would in your car, like jewelry, binoculars, VCRs, laptops, camcorders or outdoor gear. Your 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 your RV.

Someone gets injured at your campsite?

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