Instructors: Grant & Ruthe Garagnon ('00); as supplemented by Jackie Adams ('02)

Instructors are full timers, and have worked for RV Alliance America, formerly Alexander & Alexander. They write policies on Royal Sun Alliance Insurance and Progressive Insurance Company. A.M. Best rates both A+. If an insurance comany rates less than "A", you should proceed with caution. (see www.ambest.com).

Some basics to understand the terms, what questions should you ask, and where will you get the answers you need.

Insurance is a known amount (premium) to pay for an unknown possible loss in an unknown amount (loss). Insurance is required by law to some extent, but it's also just common sense. RVers need to understand the product called insurance, and to provide adequate coverage to give you peace of mind. The various players: The agent smiles, takes your money, and represents insurance companies. The underwriter determines whether the risk is acceptable and the company can make a profit it on it. The other big player is the claims department. All states are regulated by commissions which determine which products can be sold, what coverages can be offered, and even influence rates.

Is it covered? It depends by what your policy says and what State your in. The determination is based on what state you're registered in. So the license plate on your vehicle will determine to a significant event your coverage.

How to tell a good insurance company from a bad one? Go to a library, and consult A.M. Best or Standard and Poors -- they both rate them. "A+" rating is the best. Note we're not talking about the agent, but the insurance company. It's a good idea to do a yearly insurance audit on all your coverages. This can be done by questioning your insurance agent.

Liability: This is essentially claims made against you for bodily injury or property damage. "100/300/100" is "split limit coverage". Means 100 per limit person; 300 aggregate limit per incident, and 100 property damage. "300 CSL" means 300 "combined single limit" coverage. Instructors recommend 250/500/100, or better, 500 CSL -- common quote today. Note: the cost of liability portion of the policy is really the least costly component, so you can easily afford to cover

Personal Injury Protection (PIP or no fault): This refers to medical expenses, lost wages, regardless of fault. You can rely on your own policy to pay for your injuries. Some people won't need it, and States vary on what's required.

Medical Payments: Simlar to PIP, again regardless of fault...this is essentially guest medical insurance. No provision for lost wages, incidentals.

Uninsured/Underinsured Motorists: This should be equivalent to your liability insurance. This covers claims you may have against another motorist who can't pay.

Collision: This means damage to your vehicle caused by hitting something, whether a fence or another vehicle.

Comprehensive (no called "Other than Collision"): This is damage other than collision, like fire, theft, hailstorm, vandalism or windshield replacement.

Actual cash value: If you have this coverage, you'll get somewhere between wholesale and retail blue book in the event of a total loss.

Stated Value: Pays either the agreed upon value, or actual cash value, whichever is lower. Have to be careful here, because you may pay a premium for the higher value you think it's worth, but still get only actual cash value in terms of a total loss.

Note re deductible: The higher the deductible, the lower the insurance premium.

Note: These apply to autos and RVs...What follows applies only to RV specialty insurance.

The above were all standard auto policy items. Next considered are those which are unique to RVs. Some know it better than others. RV Alliance, Gilbert, Miller, Foremost, Camping World & Good Sam. These companies know and understand RVs and RVers -- and have a special knowledge.

Comp and Collision are the items that most drive the cost.

Disappearing Deductibles: Reduces your comprehensive and collision deductible 25% for each year that you remain claim free. Thus at the end of four years, you don't have a deductible. If you do have a claim, you have to start over again. Window dings and towing typically don't count as a "claim" for this purpose, since neither has a deductible.

Replacement Cost: If you have a new coach, and you have a total loss, you get a new coach if the claim is made during the first five model years.

Purchase Price: Pays your purchase price in the event of a total loss. You don't depreciate w/Blue Book. This applies after first five model years.

Actual Cash Value: This pays the Blue Book value. Keep in mind, the premium didn't go down to reflect the diminished liability of the insurance company to pay in the event of a total loss.

Agreed Value: This applies typically to situations where a Blue Book value doesn't apply -- because it's not included in the Blue Book listings. An example would be a medium duty truck, which currently has no listing in the Blue Book. Or a Prevost bus conversion. Or a restored old RV, which has an established value, but you have a huge sum invested in restoring it. Need an appraisal, then "agreed value" which is the sum you'll receive in the event of a total loss. Needs to be updated every three years. Your premium will be adjusted to reflect that potential loss. Note that if you add special equipment of considerable value, like GPS, sophisticated satellite systems, etc, you should report that fact to the insurance company. In most cases it won't increase the premium, but it will ensure you're compensated for it in the event of a total loss.

Full-Timer Coverage: What is "full time"? One definition is no longer own a residence; another is over 150 days per year in your coach, even if you still own a home. Thus your circumstance may dictate which company's policy might be best for you. If you qualify as a "full timer" per their definition, and don't declare it, a claim might be disallowed. This is what adds personal liability coverage for persons who don't own a home, and don't have access to the personal liability component of traditional homeowner policy. Includes stored personal property and additional living expense. Personal liability limits should typically be the same limit as your vehicle liability coverage. This ("full timers endorsement) is usually only about $150/year.

Umbrella Policy: Also known as excess liability policy. It pays the excess of the liability limits you're presently carrying. It's a liability policy that goes over and above all other liability coverages. RVs, cars, boats, etc. Minimum is $1 million; maximum is $5 million. It's quite cheap, being cira $113/year for one RV and one car (no home) depending on what you're insuring.

Mexico Insurance: If you go to Canada, you're not going to have problems with your existing policy. But if you go to Mexico, it's usually something like 10 days and for 25 miles. What happens if you wreck it, or it burns up, or you hit some one or some thing. But if you're going to Mexico for a couple of months, there might be a rider that covers you for damage to your vehicle. But you will NOT have Mexican liability insurance -- you need to purchase that. Mexican rider on you coverage will provide collision and comprehensive. But if you have damage to your vehicle, and you want repairs done in the U.S., your coverage may or may not pay for the towing to get your rig back to the U.S. for repairs. Covers personal effects stolen or vandalized in Mexico. Take pictures! Note: towed vehicle is not covered by this endorsement.

Personal Effects: Most homeowners provide a certain percent of the coverage for everything that isn't affixed to the rig. This covers cameras, computers, dishes, clothing etc. If you sell your home, you may not have this coverage unless you make sure you have this specialty RV coverage. Usually there's a deductible, such as $100; and a claim here won't impact the disappearing deductible feature. Jewelry, fine art, etc, requires it be separately covered as "scheduled property" at an appraised value for all risks. Replacement cost is covered (not depreciated value), with $100 deductible.

Campsite Liability: This is really more of a marketing issue, as liability is liability, whether it is incurred at a campsite or anywhere else. (I infer that this may not actually increase "coverage" at all; and it may cost nothing. But it sounds good, and makes the insurance company sound "RVer Friendly".)

Emergency Expenses: Those which are incurred because an insured loss occurred -- not just a mechanical breakdown. Typically this covers lodging, food and transportation. Usual limit is $750 total. Full timers endorsement provides further benefits, since you don't have the option to "go home". Up to $125/day for up to 60 days while your rig is being repaired. Some may have limited amounts.

Roadside Assistance: A toll free number will get you emergency help for lockouts, out of fuel, dead battery, stuck in the mud, etc. Keep in mind your RV has specialized characteristics -- it's not just like any car. A large RV will have much larger tires, require special tools, jacks, etc. Do you need a Camping World type roadside assistance policy if it's already on your RV insurance policy? Typically no. But what your tow car? Some RV coverages include the tow car for roadside assistance purposes. [Since its already covered here, no need to duplicate with a second emergency roadside policy. Full timers endorsement covers toad too; and if you're not full timing, it covers toad when it's being used in conjunction with your RV.

Towing: This is a bag of worms. Usually it's the nearest authorized repair service. This is different than going to the nearest service station. Towing a big rig can be extremely expensive, and require special handling.

Side Note: Should you have same company for Motorhome and tow car? If you get a ticket in your tow car, will your RV insurance rate go up too? But what complications might there be if a claim arose which involved both the RV and tow car?

Medical Benefits (Scheduled): Again, marketing? It's a loss and dismemberment clause that adds to standard medical coverage. Pays $35K to heirs.

Tips summary:

1. Increase deductibles to whatever you can afford.

2. Use disappearing deductible feature.

3. If you're not a full timer, only need to insure breakables -- 'cause you have homeowners already.

4. Don't duplicate roadside assistance.

5. At renewal time ask your agent about any credits you may have, e.g. safe driving course, braking systems, alarm systems, etc. Note: RVAA accepts its own safe driving course (6 hours), but not the RV Driving School.

6. Save your receipts for any upgrades you make to your RV.

[Editorial observation follows]

What about all the "let us give you a quote" promotions from various RV Insurance companies? Beware! Should I buy the most expensive? Is the least expensive no good? You need to shop the product very carefully. It needs to fit your requirements. RVers need to "manage" their own insurance. Simply getting a "quote" on a competing product is virtually meaningless unless you can really compare apples to apples. You need to consider thoroughly every aspect of what's covered, what the deductibles are, what's excluded, and the any other limitations the coverages may imply. The fact a company wants to sell you based on having a lower price than your existing coverage can be extremely misleading unless you thoroughly compare your present coverage, deductibles, exclusions, etc., and are satisfied that the product being offered to you with a lower premium provides the coverages which you personally want and need.

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