Owning an RV can be a lot of fun. It can provide a novel way to travel across the country, but you'll have to invest a good bit of money. Many RVs can cost as much as a house. Even a modest RV can be a high-cost purchase.
You must also budget for ongoing costs, such as RV insurance. It’s vital to know whether you must carry it when you're planning to purchase a set of house-toting wheels. Many factors can come into play. Laws vary by state, making the process rather confusing at times. Some rules can make the process of knowing whether you're legally obligated to carry it a little clearer.
When RV Insurance Is Required
At least the same amount of liability coverage that you must carry on a car is needed for an RV in all states. There are some special cases, but you'll most likely need a separate RV policy if your RV is a Class A or B motorhome, if you took out a loan to finance the purchase so you don't own your RV outright, or if it's a rental.
The law states that motorhomes must have liability insurance if they're driven on the road in most states. Full coverage can be optional, based on whether you've financed the vehicle, but that doesn't mean that you should opt out just because you have the choice.
Figure out the value of your RV versus the chance of a loss to decide if your savings can bear the cost of the damage risk. Weigh the option of extra coverage if you live in your RV full time.
Financed RVs
Lenders often require that financed RVs carry full coverage. They want to recoup the money they lent in the case of a loss. Your lender could take out a policy and send you the bill if you don't purchase it yourself. Lender-purchased plans often come with much higher premiums and no liability coverage, so buying your own plan can be the smarter choice.
Rental RVs
You're responsible for a rental RV while it's in your possession, so make sure you have coverage. You can check with your auto insurance carrier to find out whether your auto coverage extends to a rental RV. Rental dealers often either include insurance in the price of the rental or have short-term policies available for purchase if your auto plan won't cover it.
Note
Check with your credit card lender, too. Some cover RVs you rent with your card, just as they often cover car rental insurance if you book a vehicle using your card.
When Insurance Is Optional
Coverage is often optional if your RV is only towable (Class C and not driven). It might also be optional if you own your RV outright: There's no loan against it, and you live in a state where RV insurance and liability insurance aren't mandated by law.
RVs that are towed include fifth wheels, pop-ups, and travel trailers. Liability coverage is often extended from your auto policy to your RV when you're towing it. Your auto liability coverage will cover the costs if your camper comes unhitched from your truck and damages someone else’s property.
Note
States often don't require insurance on towable RVs, because liability is covered under your car policy.
A loan-free RV means that you own the camper outright without any financing. RV insurance is only optional if your RV has no loan against it and is only towable.
Insurance isn't optional for RVs unless you live in a state that doesn’t require RV insurance. You'll have to carry the same state-mandated liability that you'd need on an auto if you're driving your RV on the road. These rules vary by state, but almost every state mandates some type of liability coverage for damage you might cause to other vehicles.
The Bottom Line
You might still want to carry full coverage on your RV even if it's not required by law, because a total loss could be financially devastating. This might result from fire or theft. It doesn’t mean that you shouldn’t purchase coverage just because you don't have to carry it by law. Lots of owners leave their RVs parked out in an open yard, so they're at risk for storm damage, vandalism, and theft.
Always talk to your insurance agent or other professional before deciding whether skipping insurance makes sense for you.
Frequently Asked Questions (FAQs)
Does a travel trailer need insurance?
Anything towed is typically covered by auto insurance, so extra coverage for travel trailers should be optional.
How much does RV insurance cost?
RV insurance costs depend on the size of the RV being insured. Travel trailers can be insured for $500 or less per year. Insuring Class A motorhomes will likely cost more than $1,000 per year.
FAQs
If you take vacations in a motorhome or live in an RV as your full-time residence, having RV insurance is a must. RV insurance covers your financial responsibility if you cause an accident, and another driver suffers losses.
Do I really need RV insurance? ›
Generally speaking, the difference between coverage requirements is based on whether or not you tow the RV behind another vehicle. If you tow it, in most cases insurance is optional. But if you can drive the RV to your destination, it's likely that you're required by law to have insurance coverage on it.
What type of insurance does an RV need? ›
Common RV insurance coverages and requirements
Because you drive your motorhome like a car, you'll usually need to carry liability insurance that meets the state's minimums for auto insurance coverage. On the other hand, the towing vehicle's liability policy usually covers trailer-type RVs.
What is the best RV insurance for full-timers? ›
The best RV insurance for full-timers is offered by Allstate due to their extensive coverage options and many discounts. Our best-rated RV insurance companies offer additional coverage like sound system, pet injury, vacation liability, and full-timer liability insurance.
Who has the cheapest RV insurance rates? ›
Nationwide, Progressive and Allstate are our top three picks for the cheapest RV insurance providers. The cheapest type of RV coverage is liability insurance, which is required for driveable RVs. RV insurance can be as cheap as $125 per year for basic coverage.
What is not covered by RV insurance? ›
What does RV insurance not cover? RV insurance will not cover general wear and tear or damage from mold, delamination repairs, fungi, or rot. Damage from earthquakes or floods may also be excluded, depending on how frequently the RV is used.
What is the downside of owning an RV? ›
CON: RVs can be high maintenance
RVs require a lot of upkeep. You need to keep on top of cleaning, which includes dumping RV waste. You also need to make sure fluids are topped up and tired are inflated. Then of course, there could be occasional repairs that need doing.
Why is RV insurance important? ›
It's important to have sufficient coverage to protect your assets in a serious accident or lawsuit. Without enough liability coverage, you risk going into debt or losing the things you've worked hard for – your home, car, RV, personal possessions and life savings.
Does RV insurance cover water damage? ›
Comprehensive RV insurance covers almost any damage done to your vehicle by non-accidents. Things like fire, hail, and water damage are all covered under a comprehensive coverage policy. It's still worth checking with your insurer for exclusions.
What does liability insurance cover on an RV? ›
If you cause an accident with your RV and someone is injured, this coverage can help pay their medical bills and loss of income. Most states require liability coverage. If you cause an accident, this coverage helps pay for damages to another person's vehicle or property. Most states require liability coverage.
Multi-policy: You can often get a discount on your RV policy if you combine it with other policies like homeowners insurance, renters insurance or life insurance.
Where is the best place to get RV insurance? ›
Progressive is our top choice for RV insurance based on analysis of its offerings and the competition. Progressive insures a wide range of RVs including Class A, Class B, and Class C motorhomes. It also ensures conventional trailers and fifth-wheel trailers.
Does Progressive have good RV insurance? ›
When reviewing Progressive RV insurance, we rated the company 9.1 out of 10.0 stars for their superior coverage options, low costs, and great customer service ratings. Key Takeaways: Rates from Progressive can start as low as $125 per year for basic liability coverage (excludes travel trailers).
Is Geico RV insurance good? ›
Overall, Geico ranks 3rd out of the RV insurance companies we have reviewed. Geico can cover a variety of RVs including fifth wheels, travel trailers and motorhomes. Extra options from Geico include personal effects coverage, vacation liability, emergency expensive coverage and total loss replacement.
Does AARP cover travel trailers? ›
The AARP® Auto Insurance Program from The Hartford offers specialized protection for your RV, motorhome or trailer. No-cost, no-obligation quotes are available.
What do RV warranties cost? ›
An RV warranty can cost anywhere from $1,000 annually up to $20,000, and not everyone can afford this steep price. As with home warranties, RV warranties are special protection plans that pay for minor and major repairs to your RV. They are typically offered by wholesale dealers when you purchase an RV from them.
Do I need RV insurance if I don't move it? ›
The only time you don't need liability coverage for an RV is if it can't move under its own power – in other words, if it needs to be towed, like a pop-up or travel trailer.
Is it necessary to cover RV? ›
Keeping them covered during the off-season protects the seals around the windows from dry rot and thaw/freeze cycles. You will get longer life from your seals and caulking. We should note that we favor covering your rig with a specially designed cover that fits well. We do not endorse the use of generic poly tarps.
Is RV insurance the same as auto insurance? ›
A custom RV policy typically provides more coverage because it is designed specifically for your unique recreational vehicle needs, yet it costs about the same as traditional Auto Insurance.
