Motorhomes and RVs are extremely popular with Albertans, but many people don’t realize that they require special insurance considerations. You don’t want to buy an RV insurance policy only to find that it doesn’t cover the kind of claim you need to file, so it’s best to be in the know when the time comes for renewal whether to renew your current coverage or shop for a new policy.
If you carry conventional auto insurance in Calgary, you may think that RVs can be grouped in with regular vehicles. However, RVs exist in a category all their own.
Auto Insurance Calgary: Ways to Insure an RV
RVs have much higher values than conventional vehicles, and they also have a lot of other features that need special consideration when it comes to insurance. The type and amount of RV coverage you need depends on two primary factors: the value of the vehicle and its intended usage.
Some people make occasional use of a motorhome or RV. For others, these vehicles serve as permanent homes. In the first case, you can add short-term insurance to cover you for the period of time when your motorhome or RV is doubling as your dwelling, in addition to basic coverage that protects the vehicle when it’s not in use. In the latter case, you will need to carry a comprehensive policy at all times.
The basic difference between RV coverage and regular auto insurance is that personal belongings in an RV are not always protected by standard vehicle insurance policies. It’s important not to have any gaps in your coverage, as gaps expose you to undue risk.
Recreational insurance is also much more dependent on the actual value or replacement cost of the vehicle than standard auto insurance is. Thus, coverage is typically calculated in one of three ways:
- Actual cash value (ACV). This is the most basic and least expensive RV coverage available, and it provides reimbursement capped at the vehicle’s current market value.
- Guaranteed replacement cost (GRC). This type of coverage is at the other end of the spectrum; it is the most comprehensive option available. It provides for a complete, brand-new RV replacement, but the premiums can be very high, particularly if your current motorhome or RV is relatively valuable.
- Replacement cost (RC). If you choose this option, you will be asked to select a fixed “replacement cost” limit. Your insurance will then cover you up to that limit. It’s a good middle-of-the-road solution for people who want better protection than ACV offers, but don’t need or can’t afford GRC premiums.
Some insurance providers also offer what is known as “purchase price” coverage, which caps your reimbursement limit at the price you paid for your RV. It is typically only available for models that are less than five years old.
Auto Insurance in Calgary: Other Important Insurance Considerations for Travellers
The whole point of having a motorhome or an RV is to get out and explore the open road. Freedom of travel is one of the great advantages of owning an RV, but you may need to purchase additional insurance coverage, depending on where you are travelling.
The best thing to do when you’re planning a trip is to contact your insurance provider and make sure your coverage extends to your intended destination. In most cases, your existing coverage will suffice if you remain in Canada or the United States, but if you’re venturing to Mexico or beyond, you may need supplemental travel insurance.
Don’t make the mistake of assuming your current coverage is valid no matter where you go. For example, Mexico requires drivers to purchase insurance locally. You don’t want to end up on the hook for major repairs or expenses if you venture outside your coverage area and something happens to your vehicle.
Auto Insurance Calgary: The Lane’s Insurance Advantage
Lane’s Insurance is a client-oriented, full-service insurance brokerage that leverages unique relationships with insurance providers to offer customers unbeatable rates on all their insurance needs. We are locally owned and operated, and we offer every type of insurance you’ll ever need, including everything from motorhome and RV insurance to home insurance, auto insurance, commercial insurance and much more.
We are happy to offer plenty of advice and resources to make the right choice for your recreational insurance coverage. Please don’t hesitate to contact us at Lane’s Insurance if we can help.