A brand new RV is a great source of family fun, but you should make sure it is also safe. Are you aware of when insurance is required and when it is optional for this type of vehicles? The answer is not straightforward – lots of important variables usually come into play. Read this article for a good explanation.
When RV insurance is necessary
- The RV is a rental
- Your RV is financed
- The RV is essentially a motor home
All motor homes must have liability insurance. Of course, comprehensive coverage is optional, but in certain cases, it is also quite important to purchase. You must determine the overall value of the RV and the likelihood of accidents. If you think you run a serious risk of getting in trouble every time you drive the vehicle, comprehensive coverage is a must-have.
Owners of financed RVs generally have to buy full coverage. That is because lenders need reimbursement on the loan if a total loss accident occurs.
Rental RVs that are in people’s possession only for a while must be insured. While you own the RV, you are fully responsible for all problems that might occur. You do not want to be thousands of dollars in debt if an accident occurs, so you had better protect the vehicle properly.
When RV insurance is optional
- You have a towable RV – not drivable
- You own the RV fully, without financing
Such towable RVs as pop-ups, travel trailers, and fifth-wheels are not always insured. You may not have to purchase a new policy for such a vehicle – there is a good chance your existing car insurance will automatically cover it.
Owners of loan free RVs are not obliged to purchase insurance, but only if their vehicles are towable. For mobile homes a liability policy is definitely a must.
