'MUST-KNOW' INFORMATION ABOUT RV INSURANCE
|Printed here by permission of Joe Martin||
The original article appeared in
Volume 5, Issue V of the RV gazette
Look For The Difference
"Choosing the wrong RV insurance provider
can be a costly mistake" by Joe Martin
This article addresses concerns of Motorhome Owners.
Wayfarer offers many options for trailer owners as well
An apple is an apple, is an apple; therefore, all apples are the same.
True or false? We know the answer is false. There are green, yellow and red apples; sweet and sour apples; eating apples and baking apples. And so it is with insurance.
Each provincial/territorial government regulates what must be on a policy and most insurers provide policies that follow government requirements.
Fourteen years ago, when I researched various insurance policies in Canada, there were none specifically for RVs, so I undertook the task of creating a policy designed for motorhomes and trailers. Over the years these policies have been enhanced to be, what I think, the finest available for the part-time or fulltime RVers.
Since many of our insureds travel in the U.S. and our dollar is worth less than half of the U.S. dollar, we recommend you carry at least $2,000,000 (two million dollars) of protection. Accident benefits that include death, funeral or rehabilitation expenses, along with income replacement (if you are employed) are mandatory and coverages will vary from province to province.
All perils (i.e. collision and comprehensive) are provided for the physical protection of your own motorhome. Many insurers will insist on high deductibles (i.e. $1,000). Some will even insist that the deductible be up to five percent of the value of higher priced RVs. Consequently, if your RV is worth $100,000 or more, you could have a $5,000 or higher deductible.
We have standardized on one deductible that would not place any owner under financial strain in the event of a claim.
This coverage protects your investment for five years. It offers excellent protection in the event of a total loss and also waives depreciation if a minor loss occurs - such as wind damage to the awning.
In some Canadian jurisdictions, such as Ontario, and in many U.S. states that have "no-fault" insurance, your own insurer must pay the claim. You cannot seek compensation from the other person who caused the accident. Without replacement coverage your insurer would depreciate the unit and pay what the motorhome was worth at the time of the loss. A three- or four-year-old unit could mean a 20 or 30 percent depreciation.
Most of the coverages outlined above are also available for travel trailers, fifth wheel and camper units. Replacement coverage (no depreciation) can be obtained for up to 15 years. Contents and emergency vacation expenses should be a must on your policy.
Because of Provincial Government Insurance, some of the coverages I have outlined are not available in Manitoba, Saskatchewan or British Columbia. I would suggest that RVers in those provinces lobby for changes that are essential to protect the needs of the growing number of RVers.
For example: I had a call from an RVer whose motorhome (while in storage) was involved in a hit-and-run. The rear quarter panel was damaged in excess of $5,000. He didn't have coverage under his policy because he deleted collision coverage to save $325.00.
A greater concern is when people
forget to add the coverages back on to the policy and are driving around
without liability coverage. Just think of the costs if they were involved
in an accident. You might chuckle and say, "that couldn't
happen". Well, believe me, it does happen.
A small note about premiums and claims: You may save a couple of hundred dollars initially on your premiums but most companies increase premiums from 20 to 25 percent for up to five years.
Shop wisely for your insurance needs. Rely on an insurer, broker or agent specializing in RV insurance. Price is important but so are coverages and quality of service.
To find out more about the RV insurance specialist and about RV-designed policies, visit www.wayfarerinsurance.com.
The original article appeared in Volume 5, Issue V of the RV gazette www.rvgazette.com/mag_articles02.html
Printed here by permission of Joe Martin