Your RV needs more than just auto insurance

Your recreational vehicle (RV) may travel the same roads as cars, but that doesn’t mean they should share the same insurance coverage. At a minimum, every province requires the same amount of liability coverage for a Motor Home as it dictates for a car. However, the minimum isn’t always your best choice.

An RV is essentially a vacation home on wheels. This unique nature requires a hybrid policy that combines aspects of both auto and homeowner insurance.

Although exact coverage requirements differ by province, in addition to the liability coverage mentioned above, you may need additional coverages depending on your situation and type of vehicle. To simplify these complexities, here are some key points to consider when looking into RV insurance.

What class of RV do you own?

Owners tend to use “RV” as a blanket description for motorized and towable units, here are the main types of recreational vehicles:

• Class A

• Luxury coaches (including converted buses) up to 45 feet long
• Typically include panoramic front windows, a living/dining area and bathroom
• Might include “slide outs” for additional living space when parked

• Class B

• The smallest coaches
• Do not have space over the cab
• Class includes camper vans and pop-up vans
• Include a small kitchen with a small refrigerator or grill, as well as water heater, portable toilet, and internal shower

• Class C

• Bigger than Class B but smaller than Class A
• Has sleeping area above the cab
• Ability to tow smaller vehicles

• Towables

• Fifth Wheel
• Travel Trailer
• Tent Trailer

If you own a Class A, B, or C motorhome, you will definitely need specific RV insurance. In addition – and regardless of class – you will need insurance beyond liability if you are still paying off your loan or do not own your RV outright.

Your insurance broker can provide an analysis of policy payments versus total loss before you buy so you can determine your full cost of ownership. After that, it’s up to you to decide how much financial risk you want to assume based on your usage and budget needs.

Even if you own a Towable that is paid in full and RV insurance isn’t mandated, don’t dismiss insurance without careful consideration. Although you may not be legally obligated to carry trailer insurance, you do need to consider the cost of self-insuring. Would you be able to pay the cost completely on your own if your trailer was physically damaged? Would you be able to pay the cost completely on your own if your personal belongings on board were damaged or stolen?

Whatever class of vehicle you own, the financial burden of having to pay 100% of these costs out of pocket may be too great a gamble, particularly if you use your vehicle often.

Types of coverage

Liability insurance is necessary for all motor vehicle owners. It may cover the costs of legal fees, property damage, and medical expenses to another person involved in an accident or incident with your RV for which you are found at fault. Liability coverage isn’t optional, but you may want to add these policy coverages: 

• Uninsured/underinsured motorist – Pays for property damage or medical expenses in excess of the cost covered by the other person at fault in an accident, either because they have no insurance or carry a very low level. This is particularly important if you travel to a province or state with minimal auto insurance requirements.
• Collision – Reimburses for damage to your own RV if you collide with another vehicle or stationary object.
• Comprehensive – RV damage or losses caused by non-collision related incidents such as those from natural disaster, wind, hail, theft, or vandalism are covered.
• Contents – Protects your onboard possessions.
• Towing and roadside assistance – Particularly valuable if you own a large, specialized RV and could benefit from access to a network of expert service providers.
• Emergency expenses – If your RV is rendered unusable, you may be without transportation and a place to stay. This covers both.
• Total loss replacement – If you face a total loss, you would be eligible for the Actual Cash Value of the unit at the time of the loss, up to the limit of your policy. If your loss occurs in the first five years of ownership, you will typically recover full replacement value without any depreciation subtracted.

Other considerations

Your Orbit insurance broker can review the details, limits, and exclusions of each policy choice. Premiums can often be reduced by accepting higher deductibles (the amount you need to pay for a repair or replacement before you receive any money from the insurance company). However, it's important to understand other factors beyond the type, value, and age of your RV that can impact your premium costs. These include:

• The kilometres you drive annually
• Any custom features that should have additional protection
• The regions you travel
• Where your RV is parked or stored when not being used
• Past claims
• Prior speeding tickets or speeding violations
• Potential discounts for multiple policies with the same Orbit insurance carrier

Have this information at the ready if you plan to request a quote or would like to speak to an Orbit insurance broker about adjusting your policy.

Travel with confidence

Owning an RV often comes with expenses you never considered when you first started imagining a carefree lifestyle on the road. While you may not have given much thought to insurance premiums, the right coverage can provide peace of mind and be an important part of your stress-free travels.