How Much Does It Cost to Insure an RV?

In the age of remote and digital work, Americans are becoming increasingly reliant on the relative solitude of RVs, making them more of an essential asset than ever before.

Investing in RV insurance coverage is a little like investing in business insurance - there are different types of coverage options, and the cost depends on a variety of factors.  

Everything Counts

By buying RV insurance, you’re protecting yourself from potential financial losses that arise when your vehicle is involved in an accident, which results in property damage or bodily harm. But providers also offer a range of additional insurance options that cover everything from your accessories to roadside assistance.  

A lot of reputable car insurance companies also sell RV coverage. Your insurance rates are ultimately determined by a broad range of components, including what type of RV you own and your place of residence.

Classifications 

Your average RV is both a vehicle and a home on wheels. And in the RV world, size matters. That’s because the cost of your insurance is partly determined by how big and luxurious your mobile home is. 

RV vehicles are divided into three categories or classes: A, B, and C. The biggest and most luxurious motorhomes are class A. The average RV insurance cost per year for class A motorhomes is around $1,100 to $1,300, but it can go up to $2,500. 

Type B encompasses the smallest RVs, including travel trailers and conversion vans. Some of these are small enough to be covered by standard vehicle insurance policies, and the rates vary widely depending on multiple other factors. As such, it’s difficult to pinpoint an average price.

Class C are all the vehicles in between. The average annual insurance cost for this type of RV starts from $800 to $1,000 but can go higher. The model of the vehicle and its age will undoubtedly play a role in the overall insurance cost.

Transportation and a Home

How often you use your RV definitely affects the price of your insurance. People who use RVs as a permanent home have to get additional coverages to get the same level of protection as homeowners. That includes medical, personal liability, or loss assessment coverage.

Anyone who uses an RV as a place of residence for six months or longer every year fits this bill. 

Drivers who rely on RVs primarily for transportation purposes might have to report how many days a year they use their motorhomes. The standard rule is that the more you use an RV, the higher the cost of insuring it.

Where You’re From Matters

Your place of residence is instrumental in determining your travel trailer insurance rate, or to be more precise, insurance costs are unique to individual states. States define how much insurance RV owners need to have. Insuring companies also take property crime rates and weather conditions into account.

That means that states with a higher frequency of tornadoes or snowstorms constitute a higher risk of weather-related damage claims. Therefore, RV coverage rates, just like car insurances, are higher in such states.

In Arizona, for example, the average rate is $800 annually. On the other hand, California’s insurance rates range from $800 for class C motorhomes to more than $4,000 for class A RVs. Texas residents have to pay $1,425 for annual insurance, while Michigan has the most expensive RV insurance average at around $4,490 per year.

Steady Behind the Wheel

In general, good drivers who have experience with RVs pay less for insurance than those with short driving histories. RV insurance companies avoid risk by driving up costs when it comes to individuals with little to no driving experience.

More favorable insurance prices are reserved for those that spent many years behind the wheel and have a good record free from any accidents and fines. Other factors that are taken into consideration include the driver’s gender, age, and marital status.

It’s Not the Age; It’s the Mileage

Having a spotless driving record helps reduce insurance costs. However, the amount of time you spend behind the wheel can also cause the price to spike. Simply put, the more time your RV spends on the road, the higher the chances of you filing a claim.

Of course, if you have too many claims, your insurance rates will go up. Regular RV drivers will have to get more than a standard insurance policy, which costs extra. If you’re using your RV as a home and as a vehicle, you’ll pay more.

Safe From Harm

An RV parked outdoors is a lot more vulnerable to damage than one that’s safely tucked away in a garage. So, if you want more favorable insurance rates, you should think about getting a secure closed space for your RV.

Not to mention that leaving an RV parked in the driveway in areas with high crime rates won’t do you any favors with insurance companies.

The Type of RV Insurance

Lastly, one of the most significant factors is what type of motorhome insurance you apply for. The more comprehensive the insurance policy, the greater the cost.

• Liability coverage is essential as it covers the property damage and injuries you cause to others. It can also cover legal fees if you’re sued. 
• Collision coverage pays for damage to your vehicle in case you crash into a pole or a tree or collide with another vehicle.
• Underinsured and uninsured drivers’ coverage pays for damages that your RV suffers if a driver with insufficient or no insurance causes an accident.
• Comprehensive coverage helps with non-accident damage costs, such as vandalism, theft, or natural disasters.
• Valuables coverage covers the cost or re-purchase of stolen or damaged goods inside the RV.

Different insurance firms have different rates, and this will ultimately play an important part in determining the total RV insurance cost. Some also offer specialized packages, so pick wisely.