Common Recreational Vehicle Insurance Mistakes You Should Avoid
Whether you are planning a trip across the country or simply want to enjoy camping vacations with your family on the weekends, a recreational vehicle is a great way to hit the road and enjoy nature. Just like your main vehicle and home, your recreational vehicle needs to be insured. Unfortunately, there are several common mistakes that some people make that can cost them money or not provide their RV with adequate coverage. Here are a few of the most common RV insurance mistakes you need to avoid.
Choosing Standard Auto Insurance Coverage
Your automobile insurance covers the cost of any loss associated with your vehicle and your homeowner's insurance covers the items inside your home. Chances are, you want more coverage for your home than your vehicle and your recreational vehicle should be no different. If you only have automobile insurance and your recreational vehicle is involved in an accident, the cost of replacing the RV itself will only be covered.
Any items that you store inside your recreational vehicle, such as expensive electronics, will not be covered by your automobile insurance. Instead, make sure to choose a policy that will not only cover the cost to replace your recreational vehicle, but also all of the expensive contents stored inside the vehicle.
Choosing Actual Cash Value Insurance
Typically, when you purchase any type of insurance, you will be confronted with two terms: actual cash value and replacement value. An actual cash value policy is typically less expensive. However, if you total your recreational vehicle, the insurance provider will only pay for the cash value of the RV, which means that you will receive compensation for the depreciated cash value.
Instead, when it comes to an RV, it is best to choose a replacement policy for your recreational vehicle. This means that if you are involved in a serious accident, your insurance provider will give you the money to replace your vehicle. Because a recreational vehicle is so expensive and the items housed inside can also be pricey, having the cash to replace the vehicle entirely just makes more sense.
Not Shopping Around for The Best Deal
Finally, like any other type of insurance, you need to shop around for the best price. There are some amazing ways you can save big money on your recreational vehicle insurance. For example, you can bundle the RV insurance with your automobile and homeowner's insurance or choose a higher deductible, which will allow you to save money on your monthly premiums.
Choosing the right insurance for your RV is key to ensuring you have the ideal coverage that you can afford. Reach out to a recreational vehicle insurance broker for more information.