RV Insurance – A niche insurance agents should be considering

Camping is one of America’s favorite pastimes. And if you’re anything like the typical American, you might go camping at least once a year. Kampgrounds of America’s North American Camping Report from 2019 states that at least one person camps in 62% of U.S. households.  

You can’t think of camping without RVs. RVs, short for Recreational Vehicles, are as American as apple pie. They are the quintessential vehicle when it comes to camping or even travelling around the country. Millions of Americans have embraced the RV lifestyle. Also, there are about 16,000 campgrounds and parking facilities throughout the country for RV camping.  With so many people with RVs, there’s bound to be a demand for vehicle insurance, specifically motorhome insurance.

And if you’re an insurance agent, the RV insurance industry is a huge potential market you should check out. 

What is RV insurance? 

Insurance is very specific. There’s insurance for everything, from alien abduction insurance to pet insurance. RV insurance is a unique type of vehicle insurance. RV insurance or motor-home insurance covers a lot of the risks that auto insurance does, but it’s not the same. 

Generally, RV insurance usually provides the following coverages: 

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

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. 

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Why explore the RV Insurance market? 


To date, Americans are the most significant consumer segment of RVs. According to the Recreational Vehicle Industry Association, more than 9 million families in the U.S. own an RV. That’s the highest number ever recorded.  That’s a 16% increase since 2001! Surprisingly, Millennials are the largest segment, making up 41% of campers. 

2017 marked the eight-straight year of sales growth for the RV industry. The RV industry has grown more than 200% in this eight-year span. 2018 ended that streak though, but the growth is predicted to bounce back again in 2020. A market research firm called Hexa has projected the RV market to grow to $75 billion by 2025. 

A significant number of Americans aren’t just using their RVs for camping. According to The Washington Post, roughly a million Americans use their RVs as their primary residence. Many of them do so by choice, opting for a fulltime RV-ing, “digital nomad” lifestyle. Motorhome insurance is turning into a necessity to such people.

By a lot of metrics, the RV market is on the rise. As an agent, you must be aware about what insured might want for their motorhome insurance. Here’s what you need to know to be prepared for your clients’ needs.  

RV Insurance Concerns 

Since RVs are larger than the average car, the risk of an accident can be higher. A standard vehicle insurance would, therefore, fail to provide the necessary coverage for your client in case they are filed with a lawsuit. 

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 insureds need. RV insurance is quite different from standard vehicle insurance. It encompasses many similar aspects as renters and auto insurance, but with a twist. The insured might be confused about what RV insurance they need. While most policies include liability, comprehensive and collision, and under/uninsured motorist coverage, there are always gaps your clients might want covered. 


How do you fill in the RV insurance gaps? 

As an agent, you can help fill in the blanks in your clients’ coverage policies. So, what specialized coverages can you add on to ensure your client has the best coverage?  

Here are some endorsements you can add 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.  

Keeping in mind the amount of time one spends on the road while travelling in an RV, having a towing service can be indispensable. Roadside Assistance policy will help insureds cover for towing expenses of an RV that is out of commission. It is an essential specialized coverage that you can offer the client.  


  • 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. Their policy does not cover for such events. 

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. This can save them a lot of hassle. One thing to note with this is that this coverage is only available for pleasure users.  

  • Total Loss Replacement Coverage: 

RVs are a big investment. It’s not something most people will buy frequently. If the RV encounters a catastrophic accident, the repair bills will cost a fortune. This is where Total Loss Replacement Coverage comes in. It is the policy that covers an insured if the repair costs exceed the price of the RV 

Total loss replacement is only applicable to previously untitled RVs up to one model year old. Otherwise, other RVs can be insured for agreed value or actual cash value. 


  • Custom Equipment Coverage: 

Custom equipment coverage covers RVs with added custom parts. It might be an interior upgrade, or a modified exterior. The coverage limit with standard policies is usually around $1000. It’s not difficult to go over the standard limit with expensive custom equipment.  


  • Personal effects: 

A standard RV insurance policy doesn’t cover personal effects. The personal effects coverage will cover any belongings in a covered loss while travelling in an RV. Think of it being like a personal articles floater for a homeowner’s insurance.  


Judging by the trends and numbers, the RV industry will continue its boom for the coming years. RV insurance is a niche that you as an insurance agent should surely try to leverage.  

Do you think we missed anything out? Leave your thoughts in the comments below! 

Learn how you can flourish as an agent after one call!

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

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