RV collision insurance can pay to repair or replace your motorhome or travel trailer after a collision with another vehicle, a stationary object, or a rollover, regardless of who caused the accident. While RV collision coverage is optional by law, it's often required by most lenders if your motorhome is financed. Either way, having motorhome collision insurance can help you avoid paying for costly repairs out of your own pocket.
Luckily, a local independent insurance agent can help you find the right RV collision insurance. They'll get you set up with all the RV insurance coverage you need for your specific motorhome. But first, if you've been asking, "What is RV collision insurance?" here's a guide, including what RV insurance covers and how to choose the right deductible.
Key Takeaways - RV Collision Insurance
RV collision insurance can pay for damage to your motorhome after a collision with another vehicle or object, regardless of fault.
RV collision insurance isn't mandatory by law, but lenders often require this coverage if you finance your motorhome.
RV collision insurance can pay for damage to your motorhome caused in rollovers and hit-and-run accidents.
Working with a local independent insurance agent is strongly recommended, as they can shop and compare RV collision insurance quotes from multiple carriers near you to find the best rate and fit for your unique motorhome.
What Is RV Collision Insurance?
The RV collision coverage definition is a type of insurance that pays for damage to your RV from a collision with another object, regardless of fault. The impact may be from hitting another vehicle, a guardrail, tree, or any other object. Collision coverage for an RV also covers damage and destruction to your motorhome caused by rollover accidents.
Motorhome collision insurance differs from comprehensive coverage, which covers damage to your RV from non-collision events, such as a flood or theft. Since a motorhome is a large, expensive vehicle, even a low-speed impact can cause significant structural damage. This makes having collision insurance particularly valuable for higher-value RVs.
If you're still asking, "What is RV collision insurance?" an independent insurance agent can help answer your questions and get you set up with the right coverage.
What RV Collision Insurance Covers
So, what does RV collision insurance cover? There are three core RV collision scenarios that coverage applies to:
- Collisions with other vehicles: Your RV collision coverage will apply if you rear-end a car that stops suddenly at a yellow light. Your collision coverage will pay for repairs to your RV up to your policy's limits.
- Hitting stationary objects: Your RV collision coverage will apply if you scrape your motorhome against a fence while backing out of a driveway. Again, your collision coverage will help pay for repairs to your RV up to your policy's limits.
- Rollover accidents: Your RV collision coverage will apply in the event of a rollover accident, such as if you lose control while driving in a storm and your camper rolls over. Your collision coverage can pay for repairs or a replacement to your RV, depending on the extent of the damage.
Your RV collision coverage applies in three of these scenarios, regardless of fault. Be sure to ask your independent insurance agent to help you get set up with RV collision rollover coverage.
Collision Coverage Pays Regardless of Fault
Your RV collision insurance applies regardless of fault. This means that your coverage will pay to repair or replace your RV after a covered incident, regardless of whether the accident was your fault, the other driver's fault, or no one's fault, such as in the case of a solo rollover accident.
The only difference is in the claims process. For example, if the other driver caused the accident, you could file a claim through your own collision coverage for faster reimbursement. However, your deductible would apply in this scenario.
You could also pursue the at-fault driver's liability coverage, which wouldn't require you to pay a deductible. However, this process can be slower because it requires the insurance companies to determine fault for the accident before a payout is made.
If you were involved in a hit-and-run or an uninsured driver accident, filing a claim through your collision coverage would likely be the easiest and fastest path to reimbursement. Ask your independent insurance agent for more information about how your RV collision at-fault accident coverage and RV collision hit-and-run coverage work.
What RV Collision Insurance Does Not Cover
There are several RV collision exclusions to be aware of, including the following:
- Non-collision events (e.g., theft, vandalism, hail, and animal strikes, which are covered by comprehensive insurance)
- Mechanical or electrical breakdowns
- Normal wear and tear
- Contents inside the RV (coverage requires a personal effects endorsement)
- Damage to the other party's vehicle (which is covered by your liability insurance)
- Claims not exceeding your deductible amount
It's helpful to understand the difference between RV collision coverage vs. liability insurance. Your liability insurance is designed to pay for property damage and bodily injuries to third parties caused by your RV, while your collision coverage can pay for damage to your motorhome.
Your independent insurance agent can help you review your specific policy to determine what your RV collision insurance does not cover.
Is RV Collision Insurance Required?
Not by law, no. Only liability insurance is legally required for motorhomes, while collision coverage is typically optional unless you finance your RV. But if you've been asking, "Do I need collision coverage for my RV?" if your RV is financed or leased, nearly all lenders will require you to have collision coverage.
RV collision lender requirements also typically apply to travel trailers. Even though your liability coverage extends from the towing vehicle's policy, lenders often require you to have collision coverage on the trailer policy as well.
If you're still asking, "Is RV collision insurance required?" an independent insurance agent can help you determine whether you need this coverage for your unique situation.
How You're Paid After a Collision Claim
When it comes to RV collision insurance payouts, there are usually three options:
- Actual cash value (ACV): This is the default coverage option in most policies. ACV coverage pays the depreciated market value of your RV at the time of loss, minus your deductible. A totaled Class A motorhome will receive a significantly lower payout from RV collision actual cash value coverage than what you originally paid for the vehicle.
- Full replacement cost: This coverage pays for a comparable new motorhome. RV collision replacement cost coverage is usually available for newer RVs that are 3-5 model years old or less.
- Agreed value: This coverage requires you and your insurance company to set a fixed value for your RV upfront. Agreed value coverage is useful for custom or vintage RVs. In the event of a covered total loss, your insurer will pay the agreed value of your RV minus your deductible.
Your independent insurance agent can help you determine what kind of coverage you have and how your specific payouts work. They can also help you navigate RV insurance rates and get set up with all the RV totaled collision insurance you need.
How to Choose Your Collision Deductible
Your RV collision insurance deductible is the amount you pay before your coverage kicks in. Common RV collision deductible amounts are $250, $500, and $1,000.
When considering how to choose your RV collision deductible, remember that a higher deductible means a lower premium rate for your policy. This can lead to monthly savings, but you'll have to pay more out of your own pocket if you need to file a claim.
For example, a $1,000 deductible means that claims for less than this amount won't receive a payout. However, RV collision repairs frequently average $5,000 to $20,000 or even more for significant damage. This means that a $500 to $1,000 deductible is manageable compared to the average claim amount.
When to Consider Dropping Collision Coverage
Knowing when to drop RV collision insurance can help you save money on your monthly premiums. If you've been asking, "Should I drop collision on an old RV?", you should only do so if the RV is paid off and its market value is low relative to your policy's deductible and annual premium. You can determine this by applying the 10% rule, which states that if your policy's annual premium exceeds 10% of your RV's current market value, RV collision insurance isn't worth it.
Collision claims are more directly tied to driving behavior than comprehensive claims are. This means that infrequent use of your RV means you have less of a risk of needing to use your collision coverage. An independent insurance agent can also help you determine if keeping RV collision insurance is worth it.
RV Collision vs. Comprehensive: What's the Difference?
Collision coverage applies after hitting something, including another vehicle or object, while comprehensive coverage applies to damage caused by events beyond your control, such as hail or vandalism. When determining if an event falls under motorhome collision or comprehensive coverage, use this rule of thumb: If your RV hits something, it's collision; if something happens to your RV, it's comprehensive.
RV full coverage insurance policies include both comprehensive and collision, and each of these types of coverage carries separate deductibles. Your independent insurance agent can assist you when filing claims and determine if an accident falls under RV collision vs. comprehensive coverage. Learn more about RV insurance FAQs below.
FAQs About RV Collision Insurance
Does RV collision insurance cover a rollover?
Yes. A rollover is a considered a collision event because the vehicle collides with the ground and other surfaces. If you lose control on ice, a wet road, or in a storm and your RV rolls over, your RV rollover insurance pays for the resulting damage up to coverage limits, minus the deductible. If you're still asking, "Does RV collision cover rollovers?" your independent insurance agent can help you understand how your motorhome rollover coverage works.
Will collision pay if the accident wasn't my fault?
Yes. If you've been asking, "Does collision pay if other driver's at fault?" Your own collision pays regardless of fault. If the other driver caused the accident, you can file through your own collision or pursue the at-fault driver's liability insurance. In hit-and-run or uninsured driver situations, your collision coverage is often the fastest path to getting repairs done. An independent insurance agent can help you understand more about RV collision fault vs. RV collision insurance not at fault.
Does collision insurance cover backing into something?
Yes. If you've been asking, "Does RV collision cover backing into objects?", backing into a fence, post, another vehicle, or any other object is a covered collision event. RV collision backing up coverage pays for the resulting damage up to your coverage limits, minus your deductible. RV collision covers driveway accidents, as well.
What happens if my RV is totaled in a collision?
What happens in a RV total loss is if the repair costs exceed the RV's value, the insurer declares a total loss and pays a settlement. Under ACV RV totaled collision insurance, the your insurer will pay the RV's depreciated market value minus your deductible. In the event of a full replacement cost RV total loss collision claim, the insurer will pay out the cost of a comparable new RV.
Under agreed value coverage, the insurer pays out the amount that was agreed upon at policy inception. Deductibles apply to all total loss settlements.
Do travel trailers need collision insurance?
Yes, a travel trailer needs its own collision coverage on the trailer policy. If you've been asking, "Why do I need collision on my travel trailer?" it's because the towing vehicle's policy only provides liability for damage the trailer causes to others while towing; it does not cover physical damage to the trailer itself. If the trailer is financed, lenders require travel trailer collision insurance. If the trailer is owned outright, fifth wheel collision coverage is optional, but it's recommended for newer or higher-value trailers.
When should I drop collision coverage on my RV?
Only if the RV is paid off and its current market value is low relative to the deductible and annual premium. When asking if RV collision insurance is worth it, apply the 10% rule: if the annual collision premium exceeds 10% of the RV's current market value, carrying collision may cost more than it's worth.
If you've been wondering, "Should I drop collision on an old RV?", an older RV with high mileage and low value is the most common case where dropping collision makes sense. An independent insurance agent can also help you determine when to drop RV collision coverage.
An Independent Insurance Agent Can Help You Find RV Collision Coverage
When you're ready to find the right RV insurance collision coverage, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple specialized RV insurance companies in your area, so they're free to shop and compare quotes and policy options for you.
They'll get you set up with the RV collision insurance that combines the best blend of coverage and cost. And down the road, your agent can help you file RV insurance claims and update your coverage when necessary.
Sources
https://www.amfam.com/insurance/rv/coverages/collision-coverage
https://nicevilleinsurance.com/niceville-blog/understanding-rv-collision-insurance
https://www.progressive.com/answers/rv-collision-comprehensive-coverage/