Owning an RV can be fun and something that many people dream about, because it is a recreational vehicle that allows you to move around the country easily. Considering the amount of investment required, it is important to make sure that it is well taken care of.
Purchasing RV is like combining an auto policy and a home policy all in one. Other than the maintenance and financing costs, it is always important to find out whether RV insurance will be needed for your recreational vehicle.
There are many factors that often come into play when it comes to purchasing an RV. Every state has its own laws that govern the purchase and ownership of this recreational vehicle. Although you may not be obligated by law to insure the vehicle, it would be wise to protect your investment by purchasing an insurance policy.
At what point is RV insurance a requirement?
A RV is required to have liability insurance when it is being driven. The physical damage, better known as comprehensive and collision coverage, is required when the RV is being financed, much like an automobile.
When is RV insurance optional?
There are circumstances when RV insurance is optional. The first one is when the vehicle is towable but cannot be driven.
If you buy a new RV without any financing, you will not be pressured to insure the RV because there is no second interest. In other words, you do not co-own the vehicle with anyone else. However, do you really want to risk not having insurance for such an expensive investment?
The major purpose of insurance is to protect assets and businesses from unforeseen financial losses. For example, it would be a good idea to have full coverage regardless of whether it is a legal requirement or not.
Below are some of the reasons to have RV insurance:
1. Protection against crashes
This is one of the main reasons why you should have insurance coverage for your RV. Mistakes always happen and you never know when an accident may occur. It is better to have a coverage that will protect your vehicle against such uncertain events.
Collision coverage would be perfect in this case. Even minor dents and scratches can be costly to repair if you do not have an insurance policy in place. But when your vehicle is insured, the insurance company will take care of all the repair costs after paying your deductible.
2. Protection against theft
This is something that many people often ignore. There are several cases where vehicles are stolen and there is absolutely nothing you can do to recover them. It does not matter how much security you think exists for your vehicle, it is simply good to be covered.
With comprehensive coverage, the insurance company will be able to replace your RV in the case it is stolen from your home or while on a road trip. Comprehensive insurance also covers damages to your vehicle from inclement weather, vandalism, or fire.
3. Protection against breakdowns
This is another reason why you should purchase RV insurance. Many insurance companies in the United States offer roadside assistance. This type of insurance is meant to cover the cost of towing your RV to a place where it can be repaired.
In most cases, the insurance company will send their representatives and tow the RV to one of their accredited repair shops. This saves you a lot of hustle and the risk of being stranded in the middle of nowhere.
4. Protection against total loss
This is a special kind of insurance whose objective is to cover your vehicle against total destruction. If your RV is involved in a fatal crash or is destroyed by fire or any other covered peril, the insurance company will be able to replace it to the value of your coverage.
This gives you peace of mind knowing that whatever happens, you will still have your RV. It also prevents lose of your investment.
5. To meet legal requirements
As mentioned earlier, different states have their own rules and regulations that govern the purchase and use of recreational vehicles. In some states, you will not be allowed to drive your RV without any form of insurance. You will therefore be forced to buy insurance for your vehicle to fulfill this requirement.
Additionally, you will also be required to have insurance in case you purchased your RV through any form of financing. Most financial institutions will want to ensure that the vehicle is fully covered if you are still repaying the loan.
Insurance plays a big role in ensuring that our assets are always safe. Although some people may see insurance as an extra financial burden, the benefits of purchasing an insurance coverage outweigh the negatives.
An RV is an expensive investment, and it only makes financial sense to protect it. You do not know when an accident will happen or when your RV will develop issues when you are on a trip.
The insurance company will be there to protect against repair costs and even replace your RV in case it is totally damaged or destroyed.