Transferring Insurance to Your New RV

Mr. and Mrs. Jeffries had been shopping for months and were excited to finally trade their older motorhome in for a brand new model. They waited patiently while the dealership took care of all the paperwork, and the helpful salesman even offered to let their insurance company know they had acquired a new vehicle so they could hit the road.

Two weeks later, Mr. Jeffries called the claims hotline to report he'd had a fender bender accident in the RV. To his dismay, the claims representative told Mr. Jeffries the vehicle listed on his policy was not the vehicle he was reporting a claim on-his policy did not reflect that he'd purchased the new vehicle. Mr. Jeffries' thought the change had been relayed to his insurance company, but that was not the case at all.

Since the Jeffries' accident occurred within the first month of the insurance company's grace period, the minor damage the vehicle sustained was covered by their policy. The basic coverage from their old vehicle transferred to their new one. However, if the accident had been a total loss, the situation would have been much different-for the loss of their brand new vehicle, they'd have received the depreciated market value, which was thousands less than their purchase price. Notifying the insurance company of the change would have ensured they had Total Loss Replacement for their new vehicle, which pays the full replacement value, rather than the vehicle's market value, if a total loss occurs.

Relying on a third party, like an RV dealer, to handle the transfer of your insurance, can be risky. While it's common for an RV dealer to offer to complete the "routine" insurance transfer for you, this important detail can sometimes be forgotten. The buyer is ultimately responsible for ensuring that the changes have been made. If you choose to let the dealership contact your insurance provider, ask for proof then insurance transfer information has been sent to your insurance provider before leaving the RV dealership. Request a copy of the fax he sent to your provider-or something else in writing that proves the request has been made.

After an insurance transfer is requested, you should receive a new Declarations Page and invoice from your insurance provider within 30 days. If you don't receive this information within a month, contact your insurance provider to confirm your new vehicle is covered. It varies by state, but generally insurance companies allow you 30 days to transfer your insurance coverage to a new vehicle. In some areas, this grace period is only 2 weeks.

When your insurance policy is transferred to a new vehicle, your coverage remains the same and doesn't automatically upgrade with the new vehicle. If you purchase a new coach, you may want to add some extra coverage to your policy. For example, if your new RV is eligible for Total Loss Replacement, but that coverage wasn't on your current policy, you'll need to contact your insurance provider to get that coverage added before you head out in the vehicle.

While it's clearly more convenient to have a dealer handle your vehicle's insurance transfer, know it's ultimately your responsibility to ensure your new vehicle is covered.

To properly protect yourself remember to: