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Everything You Need to Know About RV Auto Insurance Coverage

  • By Joshua Zitting
  • 02 Nov, 2021

Are you thinking of buying an RV? It can be a fun way to travel across the country, but it may also entail a huge investment. RVs can cost the same amount as a house. Even buying a modest RV may still be a high-cost purchase.


Other than the budget for gas and maintenance, you may also need to budget for ongoing costs, such as RV insurance services. Before starting your journey with an RV purchase, make sure to be aware of its total cost and the laws in your state about these houses on wheels.


In this article, we will run you through everything you need to know about RV insurance and how it may affect the cost of your RV purchase.


Are You Required to Get RV Insurance?


Like how you are required liability coverage in a normal car, you are also required at least the same amount for an RV in all states.


Although there are special cases, you are most likely going to need a separate RV policy if your RV is a class A or B motorhome, if you took out a loan to finance your RV purchase, or if it is a rental.


Motorhomes


All motorhomes are required by law to have liability insurance if they are going to be driven on the road.


You may not be required full coverage if you financed the vehicle or if it is a rental, but that does not mean you should just opt out because you have the choice. You may want to consider the following to decide whether you would like to get the extra coverage:

  • The value of your RV

  • The chance of a loss or damage

  • Whether your savings can cover the cost of the damage risk


Financed RVs


Most lenders will require you to get insurance with full coverage for financed RVs so they can get back the money they lent in case of a loss or damage. Some lenders can purchase the policy themselves and send you the bill. However, these plans often come with higher premiums and no liability coverage, so it is better to purchase the plan yourself.


Rental RVs


Rental RVs are your liability while they are under your possession, so you have to make sure you have the coverage.


Some auto insurance carriers extend their coverage to rental RVs. If your auto plan doesn’t cover it, the rental dealer can include the insurance in the price of the rental or send you a short-term policy instead.


Your credit card lender may also cover your RV if you book the vehicle using your card.


Are There Instances When It’s Optional?


There are some instances when RV insurances are optional such as:


  • The RV is towable such as fifth wheels, pop-ups, and travel trailers

  • It is a class C that can’t be driven

  • If you own the RV outright, there’s no loan against it, and you live in a state where RV insurance isn’t mandated by law


How Much Does It Cost?


The cost will depend on the size and value of the RV being insured. Here are some estimates:


  • $500 or less per year for travel trailers

  • $1,000 or more for Class A motorhomes


Conclusion


While the concept of traveling through states in an RV may seem fun, it may be a costly investment. Make sure to take note of the additional costs, including your maintenance fees and insurance fees, before making that purchase!


If you need help figuring out what type of coverage you should be getting, RV insurance services are available to make sure you have liability coverage.


Are you in need of RV insurance and Auto Insurance from Sanford Insurance in Florida? We at Sanford Insurance Center will make sure you and your vehicle are financially protected in time for travel season! Head on to our website to learn more.


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