Check Insurance Coverage

[Ram Montana High Country]

With RV values dropping, if something major happens and the rig is totaled- insurance coverage may NOT cover the loan … this may leave us up a creek if something happens.

Food for Thought

[Cat320]

Insurance is like everything else....it's out of control. In four years, my insurance has doubled...no claims or accidents.

[Ram Montana High Country]

Agree with that direction, it’s thanks to lawyer. My point is, if the rig is totaled by the insurance company the amount paid is MARKET VALUE. If the value dropped 50% it might on pay half your loan. So no RV and you still have a payment.

[AZ Traveler]

Time to work at paying down the loan.

[Rotnjonny]

Or pay for GAP coverage

[Bourbon County]

Originally Posted by Cat320

Insurance is like everything else....it's out of control. In four years, my insurance has doubled...no claims or accidents.

I don't know if this irritates other folks, but my hips are severely chapped when I see an insurance company buy the naming rights to an NFL, MLB, NBA stadium/arena, sponsor a golf tournament, race car, etc. Some of these are several hundred million $ deals. The one that irritates me the most is the Allstate Sugar Bowl. They've owned the naming rights to that game as long as I can remember and it's played in the city whose residents they screwed over so badly after hurricane Katrina.

[brenkco]

Generally speaking, RV insurance policies usually offer 3 different loss settlement options:

1. Full replacement cost (most expensive)
2. Stated or agreed amount (middle of the road)
3. ACV (least expensive)

For the most part auto insurance companies only offer ACV but some do offer replacement cost.

Gap coverage is sometimes available. It provides coverage for the difference from ACV and the loan amount. It's protection for the lender but it will alleviate the financial obligation of the borrower should the unit be totaled. The main benefit of replacement cost or agreed value is that protects the policy holders investment in an otherwise depreciating RV.

Definitions:

1. Full replacement cost: Usually covers the cost of replacing the RV with like kind and quality should the cost of repairs exceed the current value. Limit may exceed original purchase price. Coverage normally expires in year 5. Some policies revert to Stated or agreed value after year 6.

2. Stated or agreed value: The amount is stated on the declaration page and is normally the purchase price. Full amount is payable should the loss exceed the current value.

3. ACV. The value of the RV at the time of the loss. In other words, the deprecated value of the RV at the time of the loss.

Companies are different as policies vary in the scope of coverage. In choosing insurance most compare price rather than the loss settlement provisions. A policy providing full replacement cost is going to be more expensive than one that provides ACV.