RV Insurance – A niche insurance agents should be considering

Does a vehicle insurance cover for an RV? No. What about Homeowners coverage? Again, no! One will need RV insurance to cover for that. But not all insureds will know that! 

RVs are the go-to vehicles when it comes to camping or traveling around the country. To date, Americans are the most significant consumer segment of RVs. According to The Wandering RV, more than 9 million families in the U.S. own an RV. Also, there are about 16,000 campgrounds and parking facilities throughout the country for RV camping. 

And Americans aren’t just using their RVs for camping. As per a study by the University of Michigan, nearly a half-million RV owners say they use their recreational vehicles as their primary residence. Moreover, the average annual growth of the RV industry is 7.6%

Despite such a large consumer base for RVs, getting an RV insurance policy, also known as Motorhome Insurance, can be very much confusing. Why? Because it is so diverse! 

RV Insurance Concerns 

Since RVs are larger than a car, the risk of an accident is higher. A standard vehicle insurance would, therefore, fail to provide the necessary coverage for your client in case a lawsuit is knocking at their door. 

RVs include a wide range of motor homes – from camper vans to bus conversions. Because of this, RVs get put into different classes. Classes that categorize different RVs are: Class A, B, and C.  

These classes inevitably affect coverages an insured needs. Throw some other factors into the mix and voila! The insured will be left clueless about what RV insurance they need. 

As an insurance agent, you should, therefore, consider different RV insurance coverage for your clients. After all, you want to make sure your insured gets the best motorhome insurance that you can offer. 

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How do you fill in the RV insurance gaps?

Generally, RV insurance usually provides the following coverages:

  • Liability Coverage
  • Uninsured/ Underinsured Motorist Coverage
  • Collision Coverage
  • Comprehensive Coverage

Which is quite similar to standard vehicle insurance.

Also, RV insurance is essential if:

  • The RV is a motorhome (Class A or B)
  • The insured purchased the RV through a loan
  • The RV is a rental vehicle.

But with so many factors in play, it can get confusing. As an agent, you can fill in the blanks in your clients’ coverage policies. After all, you want to make sure your clients don’t find themselves in tight spots as well.

So, what specialized coverages can you add on that makes it easier for your client?

Well, here are some additions you can sprinkle in with the standard RV insurance:

  • Roadside Assistance:

survey by AAA found that 40% of American drivers would be unprepared for a roadside breakdown- most common issues being dead batteries, flat tires, or lockout situations.

Roadside Assistance policy is what will help insureds cover for towing expenses of an RV that is out of commission.

It is an essential specialized coverage that you need to make sure is with the standard RV insurance coverage that you offer to the insured.

  • Vacation Liability Coverage:

An insured may find themselves in trouble if someone gets injured in their RV, and they only have a standard motorhome insurance coverage. Why? Because their policy does not cover for it.

Vacation Liability coverage is what they need to save themselves from the hassle of getting sued.

Vacation Liability provides coverage in case of bodily injury and property damage that takes place in the RV while being used as a temporary vacation home.

Add this coverage as a cherry on top for any client heading to their next big adventure.

  • Total Loss Replacement Coverage:

We’ve all watched the Incredibles. I mean, who hasn’t? And we all watched the supers casually walk away after practically leveling an RV. A vehicle insurance wouldn’t cover for that catastrophe.

Can you imagine how much the repair costs would be? We certainly can’t.

Your insured wouldn’t like to think about it either. If the costs of repair for their RV skyrockets, Total Loss Replacement comes into play. It is the policy that covers an insured if the repair costs exceed the price of the RV- a perfect addition to the motorhome insurance.

One thing to note- it is only available for previously untitled RVs that are up to one model year old.

  • Custom Equipment Coverage:

Your insured may not be adding a laser beam to their RV (like The Incredibles), but the custom equipment that they do is essential to them. Indeed, an insured would want to cover the custom additions in their RV.

Custom equipment coverage covers RVs with added custom parts.

Specialized coverages are there to help with specific cases. As an insurance agent, it is up to you to provide the coverages best suited to your client’s needs.

In conclusion…

Make sure your clients are clear on what coverages you can and are offering for their RVs.   

Help your clients enjoy their vacation without having to worry about potential expenses or losses. 

Have we missed anything? Let us know in the comments below!  

Do you agree with our take on RV insurance? Or have we missed out on something? Let us know in the comment section.  

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Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!