Are Your Lifestyle and Investment Properly Protected?

When making the decision to purchase a new RV, one of the first things you most likely considered was which RV you wanted to buy. With multiple models and numerous manufacturers, the choices are practically endless. So surely much time was spent investigating which RV best met your family's needs.

Unfortunately, finding the perfect RV is where many RVers stop their research. The same diligence used in selecting an RV should also be used to evaluate which insurance will best protect not only your RV, but also your RVing lifestyle.

If you haven't checked out RV-specific insurance coverage lately, it's likely you're underinsured. By insuring your specialty investment with a standard auto carrier, you may also be ensuring a financial loss down the road should you ever need to file a claim.

RV insurance companies are able to price their coverage based on the recreational use of the RV rather than treating RV risk the same as auto risk. RV-specific policy rates take into account that RVs are not used with the same frequency as commuter vehicles.

RV-specific insurance policies are not new. Invented by Aon Recreation Insurance in 1966, RV coverage is comparable and often less in price to standard auto coverage but provides substantially more protection. Insurance agents who offer RV-specific policies understand how you use your recreation vehicle and have tailored a wide variety of coverage to protect your RVing lifestyle.

If you find yourself in the unfortunate situation of filing a claim, you'll have great peace of mind in knowing your claim is being handled by someone who understands how RVs are built and the values involved. It's hard to ignore the multitude of stories about auto claims adjusters who investigate an RV accident and leave the owner with the impression that they've never even been in an RV, let alone understand how to value its components. Awnings, antennas, satellite dishes, trailers and other attachments won't surprise an RV-experienced adjuster--a big comfort if you are negotiating the cost of damage to your RV.

At first glance, a standard auto carrier seems fine-the company has a reputable name, they've done a great job with your home or autos, and they've offered all the state-required liability limits. But too often auto insurance providers assume your "home on wheels" is really just like a big car. Knowing your RV as well as you do, you know that this simply couldn't be further from the truth.

Consider the most basic part of any vehicle insurance policy--liability coverage. This pays for bodily injury and property damage you may cause to others while operating your vehicle. If you add your RV to your auto policy, you'll typically have the same liability limits for both vehicles. While that limit may be appropriate for a car, it may not be enough to cover the accident damage that a large RV can cause.

Also keep in mind that simply because you own an RV, it may appear to outsiders that you have deep pockets. You're more likely to be targeted for a potentially costly lawsuit. A specialty RV policy provides broader liability protection than basic auto limits.

No standard auto policy accounts for the amount and variety of contents you keep in your RV. Clothes, dishes, sporting goods, and computer equipment are all unusual items to keep in your car. Although homeowner policies provide coverage for many of these contents, there are typically limitations and restrictions if the items are away from the house.

Additionally, homeowners' coverage usually excludes damage caused by a collision. Deductibles on homeowner policies can be much higher and many exclude items that are kept permanently away from your home. And for full-timers without a homeowners' policy to fall back on, you'll have to replace items out of your own pocket if they're destroyed.

On the other hand, what you get with a basic auto policy--the actual cash value--is often not enough to pay off a lien, much less get a brand new replacement vehicle.

New 1999 RV	$150,000
10% Down	-$15,000
10-Year Financing	$135,000
After total loss in 2001...
STANDARD AUTO COVERAGE			TOTAL LOSS REPLACEMENT
Insurance pays market value:	$110,000		Insurance buys new 2001 RV:	$160,000
Remainder on loan:	$120,000		Same monthly loan payments:
Owner's out-of-pocket:	$10,000		Owner's out-of-pocket:	$0
(No longer has an RV)			(Headed to Florida on vacation)

A unique insurance problem for owners of converted buses or classic GMCs is difficulty proving a vehicle's worth when there's no standard market value. RV specialists solve this dilemma with Agreed Value Coverage, which locks in the value of the vehicle based on the bill of sale or professional appraisal.

Another convenient and cost-effective feature of most RV specialty policies is free towing and roadside assistance, complete with a network of service providers who know how to handle big rigs. They'll take your RV to the nearest facility qualified to perform repairs. And you won't pay anything out of pocket you'll simply sign for the service rendered. By comparison, standard auto policies usually limit towing expenses to $75 and offer no dispatching service or roadside assistance.

Your RV serves as both a car and a hotel when you're out on the road, so if you have an accident, you could easily be left without transportation or a place to sleep--another expense that comes out of your pocket if you're insured with a basic auto policy. Emergency Expense coverage provides you with lodging and transportation if your RV is incapacitated due to a fire, accident, or other covered loss.

The unique nature of the full-timing lifestyle is gaining more attention every year. However, many insurance companies, motor vehicle departments, and state regulators still have a difficult time deciding how to handle this unique breed of adventurers.

RV-specific coverage takes into account that if your RV is damaged, you have not only lost your primary mode of transportation, but have been forced out of your home. Emergency expense allowance is available to help defray the costs of a hotel, rental car, or airfare should an unexpected situation occur.

Most full-timers no longer have the comprehensive personal liability coverage a homeowner policy provides. This coverage would protect you, for example, if you accidentally hit someone with a golf club or if someone trips on your campsite and you're liable. Further, since the majority of full-timers store belongings while out on the road, a specialty RV policy expands your coverage to include contents kept in storage.

Disappearing Deductibles are another money-saving feature that specialty RV policies offer. Good drivers are rewarded with a 25% discount on their deductibles for every year they're claim-free. After four years without claims, the deductibles reach zero, meaning you pay no deductible for your next claim. As you earn credit, you can increase the amount of your deductibles to lower your overall premium.

In addition, RVers often qualify for multiple discounts, such as for taking a safe driving course or having a supplemental braking system, anti-lock brakes, or an anti-theft alarm system in their RV. As a member of an RV club, like Escapees RV Club or Family Motor Coach Association, you may also be eligible for an RV association discount.

Besides determining the right insurance for your RV, finding a knowledgeable agent is a must. Reference your friends or look for your club's endorsements. A good agent serves as a powerful advocate in case you ever need additional attention when dealing with a claim or need to consult with experts about your coverage. Make sure you choose one that knows RVs and the RV industry. Select a company with stability and a proven track record. The right coverage means peace of mind and many years of enjoyable RVing.

Coverages may vary by state and company. Coverages are controlled by the policies issued and are not modified, extended or revised by the descriptions contained herein.