What You Need to Know
Planning for Contingencies
Owning a recreational vehicle (RV) or motorhome is all about freedom and adventure, but protecting your investment is crucial.
In Montana, RV insurance isn’t just about meeting legal requirements; it’s about safeguarding your vehicle, belongings, and yourself.
RV and motorhome insurance is similar to auto insurance but tailored for the unique needs of RV owners. It provides financial protection against accidents, theft, or damages that can happen while on the road or at a campsite.
What Is RV Insurance?
RV insurance is a specialized insurance policy designed for recreational vehicles, including:
- Motorhomes: Class A, B, and C
- Towable RVs: Travel trailers, fifth wheels, and pop-up campers
- Specialty RVs: Toy haulers, horse trailers with living quarters
Types of Coverage
RV insurance typically includes a variety of coverage options:
- Liability coverage: Protects against bodily injury and property damage you cause to others.
- Collision coverage: Covers damage to your RV from an accident.
- Comprehensive coverage: Protects against non-collision incidents like theft, vandalism, or natural disasters.
- Personal property coverage: Covers belongings inside your RV, such as electronics and camping gear.
- Vacation liability: Protects against incidents while your RV is parked at a campsite.
- Roadside assistance: Covers towing and on-the-road repairs.
- Total loss replacement: Replaces your RV with a new one if it’s totaled.
- Full-timer’s coverage: For those living in their RV full-time, this offers protections similar to homeowners insurance.
Motorized vs. Towable RV Insurance
Motorized RV Insurance
Motorized RVs—such as Class A, B, and C motorhomes—must be insured similarly to cars. This coverage often includes liability, collision, and comprehensive options.
- Class A: The largest and most luxurious motorhomes, often resembling buses.
- Class B: Small, van-like motorhomes that are easy to drive.
- Class C: Mid-sized RVs recognizable by the over-cab sleeping area.
Towable RV Insurance
For towable RVs—such as travel trailers and fifth wheels—liability insurance is often extended from the towing vehicle’s policy. However, adding comprehensive and collision coverage to protect the RV itself is essential.
Full-Time vs. Recreational Use
Full-Timer’s Insurance
If you live in your RV full-time (typically more than six months a year), full-timer’s insurance offers broader protection. This coverage acts more like a homeowners policy, covering:
- Personal liability: If someone gets injured while visiting your RV.
- Medical payments: For injuries that occur in your RV or around your campsite.
- Storage shed coverage: Protects outbuildings at your campsite.
Recreational Use Insurance
For part-time users, recreational use insurance typically covers your RV while it’s on the road or parked at a campsite. It provides less coverage than full-timer’s insurance but is more affordable.
Montana State Laws and RV Insurance
Legal Requirements
Montana law requires liability insurance for all motorized vehicles, including RVs. The minimum coverage required in Montana is:
- $25,000 for bodily injury or death of one person
- $50,000 for bodily injury or death of two or more people
- $20,000 for property damage
Towable RVs don’t need separate liability coverage, but it’s wise to protect your RV with comprehensive and collision insurance.
Full-Time Use Consideration
If you live in your RV full-time, you need broader insurance coverage similar to homeowners insurance. Most insurers consider you a “full-timer” if you live in your RV for more than six months of the year.
Customizing Your RV Insurance Policy
RV insurance policies can be tailored to fit your unique needs and usage. Here are some optional coverages to consider:
- Emergency expense allowance: Covers the cost of hotel stays or transportation if your RV becomes disabled far from home.
- Personal effects coverage: Protects your belongings inside the RV.
- Roof Protection Plus: Covers damage from wild animals, pests, or other hazards.
- Vacation liability: Provides liability protection while your RV is parked at a campsite.
Specialty Coverage
If your RV has custom features, you may want to add specialized coverage. For example, policies can cover awnings, satellite dishes, solar panels, and other custom equipment.
Cost of RV Insurance
RV insurance costs vary based on several factors:
- Type of RV: Class A motorhomes are generally more expensive to insure than Class B or towable RVs.
- Usage: Full-time RVers typically pay more than part-time users.
- Location: Rates can vary based on where you plan to travel.
- Driving history: Like auto insurance, your driving record impacts your premiums.
On average, RV insurance costs around 1-2% of the RV’s market value annually. For example, a $50,000 RV might cost between $500 and $1,000 per year to insure.
Key Differences Between RV Classes
Class A Motorhomes
- Size: Largest and most luxurious
- Length: 26-45 feet
- Maneuverability: Less easy to drive, but offers maximum living space
- Fuel efficiency: Typically low, but powerful engines
- Best for: Full-time RVers or long-term travel
Class B Motorhomes (Camper Vans)
- Size: Smallest, built on van chassis
- Length: 16-22 feet
- Maneuverability: Easiest to drive and park
- Fuel efficiency: Best in class
- Best for: Weekend trips and short-term travel
Class C Motorhomes
- Size: Mid-sized, with over-cab sleeping area
- Length: 20-33 feet
- Maneuverability: Easier than Class A, harder than Class B
- Fuel efficiency: Better than Class A, but not as good as Class B
- Best for: Families and part-time travel
RV Settlement Options
In the event of a total loss, RV insurance policies may offer different settlement options:
- Actual Cash Value (ACV): Pays the current market value of your RV, considering depreciation.
- Agreed Value: Pays a pre-determined amount agreed upon when the policy is written, regardless of depreciation.
- Replacement Cost: Replaces your RV with a new one of the same or similar model.
Why You Should Get RV Insurance in Montana
Protection from the unexpected: Natural disasters, theft, or accidents can leave you with high repair costs.
Liability coverage: Protects you if you cause injury or damage to others while on the road.
Personal protection: Coverage for belongings and emergency expenses.
Protect Your RV with Armor Insurance Agency
Whether you’re a full-time RVer or enjoy occasional weekend trips, having the right RV insurance is essential.
Armor Insurance Agency in Miles City, Montana, is here to help you find the best coverage to protect your RV and everything in it.
Contact us today for a customized RV insurance quote tailored to your specific needs and travel plans!