If you’ve ever been in a car accident, you’ll know just how important insurance can be. Insurance can take an accident worth $15,000 in damages, and reduce your payment to practically nothing.
But how much does it cost?
RV insurance, on average, costs around $1,500. Typical rates vary from $750 – $2,000, however, the exact price you’ll pay will depend on different factors. We’ll discuss these factors, later on in this article, to give you a better of what you should expect to pay.
Here’s everything you need to know:
Is RV Insurance Worth It?
RVing requires one to make a huge investment. The cost of buying one can be as much as buying a house. And on top of that, you’ll need to budget for the maintenance and RV insurance costs. Now, many factors influence RV insurance, and laws vary in different states.
However, even if your state does not make it mandatory to insure your RV, that doesn’t mean that you shouldn’t purchase it. Protecting all your investments, even the ones on the wheels is a wise financial move.
RV Insurance is required by the state if your RV is a Class A or Class B motorhome, when you don’t own the vehicle outright, like when you took it out of a loan, and when you rent your RV. All motorhomes driven on the road need to have liability insurance.
However, there are times that RV insurance is optional. For instance, when your RV is only towable and not a drivable Class C, or if you own an RV outright without financing and you live in a state that RV insurance or liability insurance isn’t required by the law.
But, whether insuring your RV is optional or mandatory in your state, you should be aware of the drawbacks of not having RV insurance. Many owners leave their RVs parked outside hence are vulnerable to storm damage, vandalism, and theft.
RV insurance protects you from all these, including the accidents that you may encounter. Therefore, if you value your RV, purchasing full coverage is worthwhile as it’ll protect you against potential loss.
Factors That Affect RV Insurance Cost
RV insurance costs aren’t a flat rate. As such, they’re influenced by several factors including;
1. RV Type
Insurance costs largely depend on your RV’s value. For instance, insuring a Class A motorhome that costs $150,000 will be more expensive than insuring a camper that costs a few thousand. That’s because, should you get an accident, the repair costs will be higher.
2. Age and Condition
A common assumption is that new RVs have higher premiums than old models. However, this isn’t always the case. If you have your RV in poor condition, and the agency thinks that you’re going to file a claim on it, you’ll be charged a higher rate.
Also, those with an old RV that has been well-maintained over the years, might be offered a better deal than someone with a new model.
3. Driving Experience
If you’ve been driving for years and have records to prove this, you’ll get a better offer compared to someone who’s never driven or doesn’t have much experience. Your driving history will give insurers a rough idea of how you behave while on the road.
4. Past Accidents and Traffic Violations
Your record as a driver affects the rate you will be given. If you have a history of several accidents and traffic tickets, the insuring company will likely charge you more as you will be considered to be at a greater risk of another accident.
5. Where You Live
Your location affects your insurance rates. Note that insurance requirements vary in different states. Countries determine the type of insurance drivers must have at the minimum and how much. Plus, insuring companies consider the weather, wildlife, and property crime rates in an area when setting rates.
If you’re in a state that experiences thunderstorms regularly, for instance, your insurance will be more expensive. The differences can be very significant.
For example, Michigan has an expensive RV insurance policy that charges as high as $4490 per year for Class A while someone insuring the same vehicle in North Carolina, pays a low amount of $860 in a year.
6. Where You Travel
The places you will be traveling will affect your RV insurance coverage and rates. For instance, if you drive in Canada, your insurance might cover you. However, they may not provide coverage for drivers traveling in Mexico. Talk to your insurer about the places you’ll travel to, to know what the policy covers.
7. How Much You Travel
How often you plan to use your RV, will influence the rate you’ll be offered. That’s because a vehicle that’s frequently used is at a higher risk of encountering an accident than one which isn’t.
If you’ll be traveling with your RV full-time, ensure that your insurer knows this. Full-timers will pay more since their RV is a vehicle and a full-time home.
8. How Many Claims You File
If the insurer sees that you’ve filed several files before, especially for car insurance, they not likely to give you a low rate.
9. The Type of Coverage You Buy
The type of insurance you obtain also affects how much you’ll pay. Common coverage for RVs includes liability coverage that covers other parties in case of an accident, valuable coverage that protect items inside the RV if it gets damaged or stolen, comprehensive coverage, collision, and uninsured and underinsured motorist coverage.
The more your policy covers, the more costly it’ll be.
10. Where You Buy From
Your insurer is among the only choice you have when purchasing RV insurance. Some companies offer lower rates than others, and in some, customers are given discounts. Therefore, you should research different companies before purchasing from them.
What Are Average Insurance Rates for Different RV Types?
Full-time RV insurance costs $1,500 on average. For most RVs, the range is from $1,000-$2,000. But, these costs vary depending on different RV types. For instance, insurance for Class A, B, and C is $1,150, $1,000, and $900 per year, respectively, on average.
Note that the size of your RV will also influence the costs.
What Are the Average Insurance Rates by States?
As we’ve mentioned, the cost of insuring an RV is influenced by the state one is in. Some states have lower insurance policies. These include North Carolina and Massachusetts that charge $860 and $1,128, respectively, per year. But RV insurance in other states is expensive.
For example, Michigan is by far the most expensive, charging $4,490 premiums annually. Others like Texas charge $1,125 per year, and insurance in California for Class Camper ranges from $800 to over $4,000 for Class A motorhomes.
How to Get a Lower Rate on RV Insurance
There are different ways you can reduce how much you pay for your RV insurance. For instance, opt for companies that offer low rates. Consider checking quotes from different insurers and while doing that, consider if they offer discounts.
Some of the discounts to ask about include new owners, paying all the annual money in full at once, good driver, claim free fees, and paperless, among others. Additionally, those driving a fully paid motorhome and can pay out of pocket should choose liability insurance as it is cost-effective.
Lastly, you should increase your collisions and comprehensive deductibles to reduce your insurance costs if you are insuring a travel trailer or require protection from physical damages.