Owning an RV can be a lot of fun. It can provide a novel way to travel across the country, but you'll have to invest a good bit of money. Many RVs can cost as much as a house. Even a modest RV can be a high-cost purchase.
You must also budget for ongoing costs, such as RV insurance. It’s vital to know whether you must carry it when you're planning to purchase a set of house-toting wheels. Many factors can come into play. Laws vary by state, making the process rather confusing at times. Some rules can make the process of knowing whether you're legally obligated to carry it a little clearer.
When RV Insurance Is Required
At least the same amount of liability coverage that you must carry on a car is needed for an RV in all states. There are some special cases, but you'll most likely need a separate RV policy if your RV is a Class A or B motorhome, if you took out a loan to finance the purchase so you don't own your RV outright, or if it's a rental.
The law states that motorhomes must have liability insurance if they're driven on the road in most states. Full coverage can be optional, based on whether you've financed the vehicle, but that doesn't mean that you should opt out just because you have the choice.
Figure out the value of your RV versus the chance of a loss to decide if your savings can bear the cost of the damage risk. Weigh the option of extra coverage if you live in your RV full time.
Financed RVs
Lenders often require that financed RVs carry full coverage. They want to recoup the money they lent in the case of a loss. Your lender could take out a policy and send you the bill if you don't purchase it yourself. Lender-purchased plans often come with much higher premiums and no liability coverage, so buying your own plan can be the smarter choice.
Rental RVs
You're responsible for a rental RV while it's in your possession, so make sure you have coverage. You can check with your auto insurance carrier to find out whether your auto coverage extends to a rental RV. Rental dealers often either include insurance in the price of the rental or have short-term policies available for purchase if your auto plan won't cover it.
Note
Check with your credit card lender, too. Some cover RVs you rent with your card, just as they often cover car rental insurance if you book a vehicle using your card.
When Insurance Is Optional
Coverage is often optional if your RV is only towable (Class C and not driven). It might also be optional if you own your RV outright: There's no loan against it, and you live in a state where RV insurance and liability insurance aren't mandated by law.
RVs that are towed include fifth wheels, pop-ups, and travel trailers. Liability coverage is often extended from your auto policy to your RV when you're towing it. Your auto liability coverage will cover the costs if your camper comes unhitched from your truck and damages someone else’s property.
Note
States often don't require insurance on towable RVs, because liability is covered under your car policy.
A loan-free RV means that you own the camper outright without any financing. RV insurance is only optional if your RV has no loan against it and is only towable.
Insurance isn't optional for RVs unless you live in a state that doesn’t require RV insurance. You'll have to carry the same state-mandated liability that you'd need on an auto if you're driving your RV on the road. These rules vary by state, but almost every state mandates some type of liability coverage for damage you might cause to other vehicles.
The Bottom Line
You might still want to carry full coverage on your RV even if it's not required by law, because a total loss could be financially devastating. This might result from fire or theft. It doesn’t mean that you shouldn’t purchase coverage just because you don't have to carry it by law. Lots of owners leave their RVs parked out in an open yard, so they're at risk for storm damage, vandalism, and theft.
Always talk to your insurance agent or other professional before deciding whether skipping insurance makes sense for you.
Frequently Asked Questions (FAQs)
Does a travel trailer need insurance?
Anything towed is typically covered by auto insurance, so extra coverage for travel trailers should be optional.
How much does RV insurance cost?
RV insurance costs depend on the size of the RV being insured. Travel trailers can be insured for $500 or less per year. Insuring Class A motorhomes will likely cost more than $1,000 per year.
FAQs
If you take vacations in a motorhome or live in an RV as your full-time residence, having RV insurance is a must. RV insurance covers your financial responsibility if you cause an accident, and another driver suffers losses.
Do I really need RV insurance? ›
Like auto insurance, coverage for your recreational vehicle is required. Many states require uninsured or underinsured insurance, and every state requires minimum liability coverage if the vehicle is driven on the road.
What is not covered by RV insurance? ›
What does RV insurance not cover? RV insurance will not cover general wear and tear or damage from mold, delamination repairs, fungi, or rot.
What does full coverage insurance cover on a RV? ›
Comprehensive coverage is designed to cover your RV from damages and loss that occur outside of a collision or accident. This often includes theft and vandalism; damage from falling branches, rocks, and other debris; acts of nature; damage from collision with animals like deer; and more.
How does RV insurance work? ›
When you buy RV insurance, your insurer or agent will ask simple questions about you, your RV, and how often you use it. You'll then select coverages to best protect you and your vehicle. Options include liability, collision, comprehensive, uninsured/underinsured motorist, and even RV towing insurance.
Are RV expensive to insure? ›
Generally speaking, the average cost of an RV insurance policy is around $1,500 per year. However, the cost of RV insurance varies greatly depending on a number of factors, including the value of your camper, your driving record and more.
Who has the cheapest RV insurance? ›
Nationwide, Progressive and Allstate are our top three picks for the cheapest RV insurance providers. The cheapest type of RV coverage is liability insurance, which is required for driveable RVs. RV insurance can be as cheap as $125 per year for basic coverage.
Does RV insurance cover a leaky roof? ›
Comprehensive coverage may pay for water damage that's out of your control. For example, if a tree falls and puts a hole in the roof of your RV and it rains inside your RV, comprehensive coverage may pay to repair the damage, minus your insurance deductible.
Does RV insurance cover electrical problems? ›
If the power surge resulted from a covered peril, then your RV policy's comprehensive coverage may pay for the damage, minus your deductible. If the power surge was caused by negligence, such as a lack of upkeep or faulty wiring, then any consequent damage isn't likely to be covered.
Does RV warranty cover water leaks? ›
Keep in mind that warranty companies will always look at the root cause of the failure to determine whether or not an item will be covered. Take a leak for example. A leak is the result of something else failing. If something like a water heater or water pump caused the leak, that would be covered.
Appliance Coverage Is Typical In RV Insurance
Therefore, they are also considered a home unit. So items such as the refrigerator, television, plumbing systems, and your air conditioner can be covered. It all depends on the scope of your policy and how you set it up with your insurance provider.
Does RV insurance cover hail damage? ›
Without comprehensive coverage on your motorhome policy, damage from hail won't be covered by your RV insurer. Explore Progressive's editorial standards for Answers articles to find out why you can trust the insurance information you find here.
What is a deductible in RV insurance? ›
Think of a deductible as your responsibility for vehicle damage. Within your policy, you will see a listed amount that you pay toward damages before the coverage will pay. So, when you file a claim, the insurer will determine the total cost of repairs. You will then pay the deductible costs.
Is RV insurance worth it? ›
If you take vacations in a motorhome or live in an RV as your full-time residence, having RV insurance is a must. RV insurance covers your financial responsibility if you cause an accident, and another driver suffers losses.
Do you need separate insurance on an RV? ›
The liability coverage on the policy for the vehicle that tows the trailer would cover the trailer, too. However, if you want comprehensive or collision coverage for the trailer, you have to purchase a separate RV insurance policy for that.
Is Progressive RV insurance good? ›
When reviewing Progressive RV insurance, we rated the company 9.1 out of 10.0 stars for their superior coverage options, low costs, and great customer service ratings. Key Takeaways: Rates from Progressive can start as low as $125 per year for basic liability coverage (excludes travel trailers).
What is the downside of owning an RV? ›
CON: RVs can be high maintenance
RVs require a lot of upkeep. You need to keep on top of cleaning, which includes dumping RV waste. You also need to make sure fluids are topped up and tired are inflated. Then of course, there could be occasional repairs that need doing.
Is it necessary to cover RV? ›
Reasons to Cover RV or Travel Trailer
Constant exposure to the sun wears down the roof material, ultimately drying out the caulking used to seal vents and air conditioning units. While a cover does not provide 100% protection, it can cover can significantly slow down sun damage.
Does homeowners insurance cover a parked RV? ›
Typically, your homeowners' policy will cover your camper or RV against risks such as fire, theft, vandalism, and some weather-related damages, but only when the vehicle is parked on your property. The moment you take your camper on the road, homeowners insurance ceases to cover it.
