Personal Risk Insights
Prepare in Advance for Your Next Road Trip
AUGUST 6, 2024
More than 75% of Americans are hitting the road this summer, with 85% between the ages of 45 and 60 intending to take a road trip.1
The pandemic ignited interest in road trips, as people saw it as a safer way to travel.2 This year alone, 45 million vacationing Americans will use recreational vehicles (RVs).3 What type of insurance should vacationers purchase for recreational vehicles that maximizes asset protection?
Does Car Insurance Cover RVs?
A motorized RV is typically not covered by your auto insurance policy. A separate RV policy would be required.
If you are towing a camper, liability coverage may apply to the camper itself, but repairs or replacement of the camper would be paid out of pocket. The safest course of action is to speak with your insurance broker before you leave.4
What’s the Difference Between Automobile and RV Insurance?
Auto and RV insurance are similar in that they’re essential to asset protection; however, coverage differs significantly. Their differences are as follows:
- Auto policies have size limitations for coverage to apply. An RV is typically larger than 26 feet in length. The RV size will affect your coverage and premiums.
- RVs are often used for recreation, so they usually require more than just liability insurance.
- The occasional use of an RV may allow for significant insurance premium discounts during extended periods of nonuse.
- RVs are considered luxury vehicles, so repairs are more expensive than those for a nonluxury vehicle.
What Does RV Insurance Cover?
RV insurance provides coverage for various types of events. Different kinds of coverage are available to cover damage to the RV.5 Some of these coverage options are:
Provides coverage if you hit an object like a car, deer or tree. The insurance may assist in repairing or replacing the vehicles. RV insurance provides coverage up to the actual cash value of the vehicle; however, many companies offer options to upgrade to replacement cost coverage, which may provide better compensation in the event of a loss.
Provides coverage when something hits your RV (a deer, hail, grocery cart, another vehicle) and causes damage.
Covers the cost of an accident involving the RV where the driver is at fault. Most states require RVs to carry liability coverage. If you fail to obtain liability coverage, you may have to cover damages out of pocket, which could be very costly.
- Bodily injury liability provides compensation for medical expenses, rehabilitation and other costs associated with injuries sustained to individuals outside the RV.
- Property damage liability covers expenses related to damaging someone else’s property, be it a home, structure or other vehicle.
Personal belongings coverage may assist in reimbursing the cost to repair or replace damaged or stolen belongings such as clothing, appliances or other personal items.
Provides help on the road when you need it for fuel delivery, jumpstarting the battery or changing a flat tire.
If an uninsured or underinsured driver causes an accident, this coverage may assist in paying for your damages.
Helps to offset medical costs related to an accident and may supplement your medical insurance.
What’s Not Covered By RV Insurance?
RV insurance is not intended to cover every risk. Example of claims where coverage may not apply are:
- Normal wear and tear, and/or rusting that occurs with time
- Mold or fungi damage
- Repairs to your trailer
- Flood damage
- Fire damage
- Commercial use
- Towing a car behind your RV
How USI Can Help
Traveling should be fun, not stressful. USI Insurance Services can help you make informed decisions regarding travel safety and asset protection. Meet with our team to discuss your individual insurance needs by contacting PersonalRiskService@usi.com.
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