When it comes to RV insurance, Comprehensive and Collision coverage go hand-in-hand – you can’t have one without the other. Basically, Comprehensive and Collision cover the cost to repair or replace your RV in the case of theft or an accident, no matter who is at fault. Each of these coverages comes with a deductible, which you have to cover – everything else is taken care of by the RV insurance company.
Comprehensive coverage kicks in when your RV sustains damage caused by something other than a collision. This can include damage sustained by theft, fire, vandalism or if you hit an animal. Collision coverage has got your back if your RV collides with another vehicle or object. If you get into an accident with a car, pole or another nonliving object, Collision coverage will take care of the damages.
But what happens in the case of a total loss, as in, there’s no way to fix your RV – it’s a write-off. Many RV insurance companies have options to choose from when it comes to the total loss of your motorhome. These can include the market value, agreed value and total loss replacement cost. Each of these covers the cost differently and come with varied price points.
The market value is the cheapest of the three options. In the event that your RV is totaled, it will pay the lower of the actual cash value at the time of loss/accident or the market value found on the Declarations page.
Next up is agreed value, which pays the value of your RV that you select when you start of your policy. It doesn’t matter what the RV’s current market value is at the time of the loss – you’ll get that amount agreed upon in the policy.
Finally, there’s total loss replacement cost. In the event of a total loss, your RV insurance company pays for the replacement of your RV with the newest model. This coverage will only apply if your RV is considered a total loss within its first five model years.
Depending on where you live, RV insurance policies can differ, with some companies offering more or less coverage at different prices than others. Be sure to ask lots of questions and read the fine print before agreeing to any RV insurance policy.