Agreed Value is a protection option offered by some RV specialty carriers for specific RV types. Agreed Value policies can offer a greater level of protection by allowing you (the insured) and the insurance company to agree on a set price. In the event of a total loss, the insurance company will pay out that agreed-upon value. All else being equal, compared to ACV, Agreed Value offers a higher level of protection but carries a higher premium.
Replacement Cost is different. Coverage for the Full Replacement Cost offers the highest level of protection. This is the RVer’s greatest safeguard against depreciation.
For Example: Let’s say you enrolled Full Replacement Cost Coverage on a 2013 Class A motorhome you purchased for $150,000. In the event of a total loss (occurring in 2014), you can expect a comparable 2014 class A motorhome from the same manufacturer, model and series. All else being equal, replacement cost carries higher premiums than ACV or Agreed Value but much greater protection.
Determining the amount of RV insurance coverage you need means considering a number of factors.
The type of vehicle you drive influences the type of insurance coverage you need. Larger recreational vehicles mean the possibility of more damage to another vehicle. Highly customized RVs also can be more expense to repair. You’ll need liability coverage that is sufficient for the type of RV you’re insuring, and the way that you use it.
Leased or Financed Vehicles
If you’re looking to insure a leased or financed vehicle, you may be required to carry minimum insurance coverages that protect you from the risk of having to pay the full cost of the vehicle in case of an accident. When you’ve paid off your RV, you may be able to lower your RV insurance premiums.
A higher deductible can lower your RV insurance costs in the short-run. But choose your deductible keeping in mind the amount of money you’re comfortable paying out-of-pocket in case of an accident or other loss.
Before you choose low RV coverage limits, consider your financial situation. Lower coverage limits may cost you less now, but in the case of an accident, will you have the ability to pay for damages that go over your insurance coverage limits? If not, consider higher liability limits. In the long run, it could be the best choice for you.
If you’re not using your recreational vehicle for extended periods of time, you can take advantage of our exceptional Storage Option. It allows you to reduce your premium up to 53% on average, by suspending collision and liability coverages when you’re not using your RV! Comprehensive stays in effect to protect you against threats like theft, wind, fire or storms.
Check with your Venice RV insurance agent to see what’s best for your situation, since company policies and state requirements may vary.
Our Full-Timers Coverage is designed just for you. It provides coverages similar to those provided by a homeowners policy, but is built from the ground up by our RV experts to meet your unique needs.