Survey shows RV owners may be inadequately protected

People who bought a tractor-trailer or an airplane probably wouldn't put either on their car insurance policy, since both are specialty vehicles which require specialized coverages and claims handling.

Then why, when asked, do more than half of RVers surveyed report having added their RV to their car insurance policy?

"We don't know why, but we do know why they shouldn't," said Cathy Pelfrey, RV product manager, The Progressive Group of Insurance Companies, a seller of RV insurance in the U.S. "There are vast differences in coverage and services available from companies that specialize in recreational vehicle insurance that owners need to be aware of. We recommend they check with a local independent insurance agent or do research online to find out what's available so they can make the decisions that are right for them."

While a lot of car insurance policies offer roadside assistance, it may not offer it for an RV. And, even if it covers some roadside expenses for RVs, it may not cover them all. For instance, it may pay for towing but only up to the amount it would typically cost to tow a car; RV tows can cost three times more, which means out-of-pocket expenses RVers will be responsible for paying.

Specialty insurers will generally also offer "emergency expense" coverage that will pay for temporary living quarters if the RV breaks down far from home. This kind of coverage will also generally cover the cost to return an RV home from a wreck or breakdown that happens more than 50 miles from home.

An auto policy will likely pay actual cash value (ACV) for an RV, and that's the market value as determined by third-party sources. However, most specialty insurers will offer people a choice of how they would like this kind of claim handled. Some will offer RVers the choice of an agreed value settlement. Owners and the insurance company agree, up front, what the RV is worth. If the RV is stolen or totaled, that's the amount the owner will receive, less whatever deductible chosen when purchasing the policy. Specialty insurers may also offer total loss replacement coverage that will provide RVers with a new RV in the event their unit which is 5 years old or less is stolen or totaled.

An auto insurance company will typically have someone who normally handles car insurance claims come look at an RV if it is damaged in an accident. But, if RVers insure their units with a specialty insurer, the claims rep will be trained in how to look for damage and estimate what it will cost to repair. Specialty RV insurers also work with repair facilities that know how to repair an RV and guarantee their work.

Many RVers may keep things inside their RV that they never would keep in a car, like jewelry, binoculars, VCRs, laptops, camcorders or outdoor gear. An auto policy won't pay to replace these items if they're lost, stolen or damaged but specialty insurers offer "personal effects" coverage that will pay to replace them if they're used in conjunction with an RV.

What if someone gets injured at a campsite? When RVers park their units at a campsite, they may be liable for the area around their RV. This means that if someone trips and falls the RV owner could be responsible for their injuries, which generally won't be covered by their car insurance policy. People who insure RVs with a specialty insurer, injuries can be paid for under vacation liability coverage, which pays up to the limits that selected when the policy was purchased for injuries RV owners are legally responsible for as a result of an accident that occurs while the RV is being used as a temporary vacation residence.