An RV purchase is one decision that comes with additional costs. You have to consider financing, registration and maintenance fees, upgrade costs, and even insurance.
The concept of RV insurance may seem confusing, especially considering the varying laws of different states and the various requirements for other classes of motorhomes. Below, we’ll discuss all you should know about RV insurance as well as its relevance to RV loans.
What is RV insurance?
RV insurance is a form of auto insurance that provides liability coverage for your recreational vehicle. It protects you and your RV from accidents, damage, and other unexpected occurrences that may incur additional costs.
Seeing as RVs costs almost as much like a tiny home, it would be foolhardy to leave your camper without added protection.
What are the components of RV insurance?
Like car insurance, RV insurance covers four aspects.
- Bodily Injury Liability Coverage: For potential damage or injury you cause to other road users while driving your RV.
- Comprehensive Coverage: For non-accident-related damage. This includes damage caused by theft, fire, or inclement weather.
- Property Damage Liability Coverage: For any damage caused to your RV or properties on the road including vehicles or a neighbor’s adjoining property.
- Collision Coverage: For damages to your RV caused by a collision including the costs of repairs.
Is RV insurance required by law?
The different States in the US have other laws regarding RVs and auto insurance, and it is vital to determine the laws of your state and how they apply to you.
Generally, though, RVs are required to have bodily injury liability coverage and property damage liability coverage to protect other vehicle owners and road users from damages you cause.
With this in mind, you will need RV insurance if you took out a loan to finance your RV, if it’s a rental, or if your camper is a Class A or B motorhome. Still, collision coverage and comprehensive coverage is not mandatory in any state, and it is up to you to decide whether or not you need full coverage
Do I need full coverage insurance for my RV?
As we have already established, full coverage insurance is optional in most states. But purchasing only the legal minimum may not be the best option for you in the long run.
RV repairs cost an arm and a leg depending on the level of damage, and not many motorhome owners can afford to fund such repairs out of their pocket or even replace their RV if the need arises. With full coverage RV insurance, you can have all your bases covered.
It keeps you protected in unexpected circumstances such as collisions, fire, theft, hail or windstorms, or vandalism.
Why do I need RV insurance?
RV insurance is a must for RV loans where the camper serves as collateral. Lenders typically expect you to have full coverage insurance in such situations as it will cover any losses caused by damage to the RV during the repayment period.
Without such protection, you would have to cover the loss in addition to your original loan repayment.
An RV loan from My Financing USA will help you make your RV dream come true. But to protect your dreams and avoid a financial burden that nobody wants, you need to consider getting full coverage insurance for your RV.