Have Fun and Stay Safe: What is Recreational Vehicle Insurance?

Whether you own a recreational vehicle for a summer staycation or live in an RV full-time, you want to protect your investments. But what is recreational vehicle insurance? And why is it necessary?

Lake Region Insurance Agency is here to answer all of your questions about RV insurance to get you safely on the road with your new investment. We are an independent insurance agency with one goal in mind: your peace of mind. 

We will navigate RV insurance together. Contact us for a free quote

What is Recreational Vehicle Insurance?

If you are the adventure type Recreational Vehicle (RV), insurance may not be a new term. RV insurance is an agreement between yourself and your insurance agency to protect your recreational vehicles. 

It can protect your motor homes, travel trailers, RVs, campers, and other recreational vehicles. Some people have recreational vehicles for recreational purposes, while others are more dedicated to full-time RV living. Depending on how frequently you use your car will help you determine the amount of coverage necessary.  

Before you stick the keys into your ignition–ensure that you have at least liability coverage to keep you legal on the road. A motorhome will need a policy because it requires a driver. However, since fifth wheels and travel trailers require a tow, they are covered under your auto insurance.   

How Does RV Insurance Work?

When you’re ready to purchase an RV policy, your insurance agent will ask you a few questions about your recreational vehicle. Once you and your agent determine the frequency of use and the RV’s condition, you’ll select a policy that best suits your needs. 

As a general guideline, the more coverage you have, the higher the quote will be. 

In the event an accident happens, you will file a claim with your insurance. Once the claim is accepted, your insurance will pay out the damages or losses up to your insurance amounts. 

Motorhome VS Travel Trailer Insurance 

Motorhomes are driven, while travel trailers are towed behind a truck or a car; both have different requirements for insurance. However, it is in your best interest to protect your investments to your maximum capacity. 

Since you drive a motorhome is driven and not towed, you must meet the state minimum insurance requirements of liability. When you are insuring a motorhome, your agent will let you know your state’s minimum requirements. If you are traveling in your motorhome without liability, you can face penalties, including revoked license, fines, or even jail time.  

It is important to note that if you have a loan out for your motorhome, your lien-holder will require you to have coverage beyond liability. 

While the law does not require a travel trailer to be insured because it is towed with a SUV or a truck, it will usually fall under most auto policies liability coverage. However, your travel trailer is an investment and is worth insuring in the same way you would insure your house, car, or other assets. 

Many insurance companies offer a comprehensive plan with collision coverage that provides appropriate protection for your travel trailer.   

Types of RV Insurance Coverage

 Depending on the insurance plan you choose, there are several ways your RV insurance can protect your investments.

Comprehensive & Collision

RV collision

Comprehensive insurance will protect your RV from theft and damage unrelated to a collision. It will save you from the chance of inclement weather and natural disasters, falling objects, vandalism, theft, fire, and incidents of impact with animals. 

Collision provides coverage in the event of a crash with another vehicle or object. You are protected no matter where the fault lies. It is important to note that you cannot have collision insurance without a comprehensive policy. 

In the event you have to use your comprehensive or collision coverage, your determined deductibles will apply.

Uninsured & Underinsured Motorist

Uninsured motorists (UM) and Underinsured motorists (UIM) both cover the cost of medical expenses. It protects you and your passengers in a collision with an uninsured or underinsured driver. It can also help cover the costs of damage to your vehicle since the other driver lacks insurance.  

There are four types of coverage that fall under the umbrella of uninsured motorist (UM) coverage:

  • Uninsured motorist bodily injury (UM or UMBI)
  • Uninsured motorist property damage (UMPD)
  • Underinsured motorist bodily injury (UIM or UIMBI)
  • Underinsured motorist property damage (UIMPD) 

UM, insurance is a requirement in some states but, it can vary by state. However, we highly encourage having a UM policy to protect yourself from hefty sums in the event of a collision.

Bodily Injury & Property Damage Liability

While some insurance policies are optional bodily injury (BI) and property damage liability (PDL) are both non-optional. BI insurance assists with covering medical expenses for other drivers and passengers in the event where you caused an accident. PDL insurance helps pay when you cause damage to another person’s property such as, backing into a mailbox or hitting a fence.   

Total Loss Replacement

If your RV is five years old or less and totaled in an accident, you can get a whole new replacement–minus your deductible. 

Your RV will be replaced with the same year, model, and trim as your current RV in a total loss replacement. Or you can opt out of replacing your vehicle and choose to be reimbursed for the original purchase price of the RV. 

Replacement Cost/Personal Effects

You can choose to have a maximum of $99,000 of coverage for your personal belongings that dwell in your RV or travel trailer. The insurance can extend to certain items found outside your camper or RV. 

Vacation Liability 

Vacation liability will give you the comfort of knowing that if someone is injured in or around your RV, you are covered up to $10,000. For a few additional dollars, you can upgrade the coverage up to $100,000. 

Now you can relax and enjoy your vacation. 

Emergency Expense

If your RV breaks down over 50 miles away from your home, an emergency expense covers $750 towards hotel stays and transportation costs. You can choose to upgrade your plan to $2,000 in coverage for an additional charge.

We’ve Got You Covered

While navigating the intricacies of insurance policies and finding coverage that suits all your needs can be time-consuming, Lake Region Insurance Agency is here to help. 

So before you hop in your RV or hitch your brand new trailer, call Lake Region Insurance Agency to find a policy that meets all of your needs. We are in Willmar, New London, and Cokato in Minnesota; stop by and get a quote for free!

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