Insurance is one of those things that you hope you’ll never have to use, but are always glad that you have. RV insurance is no different. It’s important to protect your investment and yourself should an accident happen while you’re on the road.
But insurance can be a difficult world to navigate. Between the types of policies, coverage amounts, and differing requirements, it can be hard to figure out what you really need. We’re here to break down RV insurance requirements and teach you a little more about the different kinds of RV policies out there.
What kind of RV insurance is required?
This answer depends on three things: your RV, where you live, and whether or not you used a loan to pay off the RV.
State Insurance Requirements
The type of RV you have and your state’s requirements go hand-in-hand. Nearly every state in the United States requires that automobiles on the road carry insurance. This means you, folks who own a Class A, B, or C motorhome! Since your RV is also a driveable automobile, you’ll need to have it insured to meet state requirements.
At the very least, nearly all states require minimum liability insurance for bodily/personal injury and property damage. The amount of coverage needed will vary. Certain states even require motorists to have uninsured and underinsured motorist policies. Without proper insurance, most states will not let you register your vehicle.
If your car isn’t a motorhome and has to be pulled by another vehicle, it likely isn’t required by law to have insurance. The vehicle towing the rig must be covered, and that coverage typically extends to any trailer behind it. Always consult with your auto insurer about towing a camper to learn about coverage and the implications on your policy. You may discover that it is well worth it to take out a separate insurance policy for your RV.
So, as a general rule of thumb: If you can drive it, your RV needs insurance. If you tow it, it isn’t required by law, but it’s still a good idea.
Lender Insurance Requirements
If you take out a loan to pay off your RV, chances are they will require you to have insurance. Most often, the level of coverage that a lender requires will be higher. Instead of getting away with the minimum, you will likely need full coverage.
Why do lenders have these insurance requirements? If something catastrophic were to happen to your rig, your lender stands to lose a bunch of money. Their collateral against the loan could easily disappear, and insurance gives them a way to recoup their money in the event of a total loss.
Your specific lender will specify what types of coverage you need to have.
What are the different types of RV insurance policies?
Like auto insurance, there’s a whole slew of policy options that you can choose from with RV insurance.
Liability coverage is designed to cover costs incurred by the other party if you cause an accident. Minimum liability coverage is composed of three parts: bodily injury coverage per person, bodily injury per accident, and property damage per accident. Every state except New Hampshire requires a minimum amount for each of these.
Uninsured and Underinsured Motorist
Just because you have insurance doesn’t mean that everyone else on the road will. Uninsured and underinsured motorist insurance helps you cover costs should someone with inadequate insurance or none at all cause an accident.
Though more uncommon, some states do require this type of coverage as well.
This is the type of insurance policy you’d get if you want to be covered for damages to your property and passengers. This kind of policy is typically required by lenders.
Not all accidents happen on the road. Comprehensive insurance covers damage to your RV caused by other things out of your control. This includes fire, theft, vandalism, and weather or animal related damage. Though city and suburb dwellers may decline this type of coverage, you never know what can happen when you go out in nature.
There are also various add-ons that you can include in your policy. Common ones include windshield repair, roadside assistance, cost of labor for repairs, and more.
Valuables coverage is especially popular with RV owners. Because RVs typically carry more valuables than the average vehicle, many opt to get everything inside covered as well.
Going Without Insurance
Some states, such as Virginia, allow residents with good driving records to register as an uninsured motorist. In exchange for an annual fee, the state will allow you to forgo the insurance requirement. But just because you can, doesn’t mean you should.
Know that going without insurance can carry heavy consequences. If it’s required, not complying can result in tickets, fines, and even getting your rig impounded. Worse are the financial implications of getting in an accident without insurance. If you cause an accident and don’t have coverage, you will be liable for damages to both parties.
Hit the Road
RV insurance gives you peace of mind when you set out on the road. There’s no way to predict an accident, but thankfully, there is a way to prepare. With RV insurance, you can kick back and relax knowing that if something were to happen, you and your investment would be covered.
For a free RV insurance quote, check out our preferred insurance partner, Roamly.