What Type of RV Insurance is Right for You?

By: South Thompson RV   |   16 Jan 2018
RV and a guy contemplating what insurance to buy

An RV is a major investment for most people. When you buy a new or used travel trailer, tent trailer, fifth wheel, or another type of RV you’re going to want to make sure you’re protected if anything ever happened to it. Whether it be while driving down the highway or parked securely at a campground, your RV can be damaged no matter how much you prepare for worst case scenarios.

RV insurance is available to help protect you from those unfortunate circumstances you just can’t plan for. Whether it’s another driver sideswiping you on the road, or a large branch falling on your trailer at your favourite camping spot, RV insurance can help protect you financially from all those mishaps.

There are three different types of RV insurance, so before you make a big investment, read about the differences so you can decide what is the right insurance option for you:

Full Replacement Insurance

Full Replacement Insurance

The name kind of gives it away. Every insurance policy is unique and should be read over carefully but, generally speaking, a full replacement warranty will reimburse you for your RV if it is ever severely damaged or destroyed with the same type and model of RV if at all possible.

So, let’s say you purchased a 2015 Surveyor 201RBS and it was damaged in an accident to the point it can’t be fixed. Depending on the terms of your policy, you would get a new 2018 Surveyor 201RBS. If that model isn’t available you would get a new model that's as close as possible in features and abilities as your 2015 model.

This can be a smart option for anyone purchasing a brand new RV with particular features. With replacement insurance, you’ll always have access to an equivalent trailer to the one you originally purchased.

Replacement Insurance

Replacement Insurance

Standard replacement insurance is similar to full replacement insurance but you’re not guaranteed an exact make or model of RV. Let’s say you purchased a trailer for $35,000 and a couple of years later something happens to it that is covered in the bounds of your insurance policy. Since the RV has been used for a couple of years it has depreciated, so it’s now worth approx. $20,000. You will get a trailer worth that amount with similar features to your original RV.

While you won’t get the same RV as your original, this type of policy will be cheaper than full replacement policies and you’re still going to get reliable RV in return.

Insured for an Amount

Insured for an Amount

This is the simplest form of RV insurance. Essentially, you insure your RV for a set amount and if anything happens to your RV in the bounds of your insurance policy, you get that amount of money back. If you were to purchase a used travel trailer and insure it for $10,000, if something were to happen to it within the bounds of your insurance policy you get $10,000 back. This can be good option for anyone investing in their first used trailer.


What’s the Difference Between RV Insurance and Car Insurance?

As you can see above, RV insurance policies can work a bit differently than standard car insurance. Depending on the type of RV you own, you may be able to have it covered under your car’s insurance policy. You’ll have to do your homework if you’re going this route since standard car insurance may not pay out as much as specialized RV insurance. Again, every policy is different so it’s important not to assume anything.

In fact, if you have questions about insuring an RV, why not contact our finance team? They can help walk you through all your insurance options and answer your questions so you can make the right decision for your needs.

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