Whether it’s full-time or strictly for vacation, life on the road presents its fair share of unexpected obstacles. Incidences that may otherwise set you back financially can be fixed quickly and easily with protection from RV insurance and extended RV warranties. In this comprehensive guide, we will highlight the key differences between an RV insurance vs RV warranty, discuss their advantages, and explain why it is important to have both.
What does RV insurance cover
RV insurance and RV extended warranties mainly differ in regards to what they cover. Depending on the policy type, RV insurance provides coverage for a range of risks and liabilities associated with owning and operating an RV. The specific coverage options and limits can vary depending on the insurance provider and policy terms, but common types of coverage included in RV insurance policies may include:
Liability Coverage: This is the most basic form of insurance protection and is legally required in all 50 states. This coverage type provides financial protection if you are found legally responsible for causing bodily injury or property damage to others while operating your RV. It typically covers medical expenses, legal fees, and damages awarded in a lawsuit.
Collision Coverage: More extensive than liability coverage, collision coverage helps pay for repairs or replacement of your RV if it’s damaged or destroyed in a collision with another vehicle or object, regardless of fault. Collision coverage provides significant financial protection.
Comprehensive Coverage: Also known as “other than collision” (OTC) coverage, this protects your RV against damage caused by non-collision events such as theft, vandalism, fire, severe weather, falling objects, or animal collisions. These may be referred to in a policy as “acts of God.” Another component to comprehensive and collision coverage is “Total Loss” coverage. Total loss is determined when the costs of restoring the vehicle to its previous condition is greater than the vehicle’s condition as is.
Uninsured Motorist Coverage: This coverage helps pay for your medical expenses and property damage if you’re involved in an accident with an uninsured driver. If you get in a car accident with an uninsured driver, you may face challenges in recovering damages for your vehicle repairs, medical expenses, and other losses, leaving you to rely solely on your own coverage. Uninsured motorist coverage protects you by helping to cover the costs resulting from the accident.
Medical Payments Coverage: Also known as “med-pay,” this coverage helps pay for medical expenses incurred by you and your passengers in the event of an accident, regardless of fault. Injury is stressful enough without medical bills looming overhead. Med-pay steps in to help with these bills.
Personal Belongings Coverage: This provides reimbursement for the loss or damage of personal belongings stored in your RV, such as clothing, electronics, and camping equipment. In the event of theft, fire, or another covered incident, personal belongings coverage helps offset the cost of replacing or repairing these items.
Emergency Roadside Assistance: This coverage may include services such as towing, fuel delivery, tire changes, locksmith services, and emergency repairs in the event your RV becomes disabled while on the road. Some extended warranty companies offer RV emergency roadside assistance plans as an add-on.
Vacation Liability Coverage: This type of coverage is more extensive than a typical policy and is of special interest to RVers. Vacation coverage extends liability coverage to protect you against claims of bodily injury or property damage that occur while your RV is parked and being used as a temporary residence, such as at a campground or RV park. There are many different RV insurance companies who provide coverage policies catered specifically to RVs, so it’s a good idea to consider your options.
It’s important to review your RV insurance policy carefully to understand the specific coverage options, exclusions, deductibles, and limits that apply. Consider your individual needs and preferences when selecting coverage options and ensure that your policy provides adequate protection for your RV and your peace of mind while traveling.
Extended warranty on RV
Extended warranties cover what your insurance doesn’t Like RV insurance, RV extended warranties are designed to protect your wallet if something goes wrong with your rig. An extended warranty, also known as an extended service contract, is a supplemental coverage plan that extends the warranty coverage beyond the manufacturer warranty period. It offers protection from repair costs incurred because of an unexpected mechanical or electrical breakdown. Extended warranties offer peace of mind to vehicle owners by providing financial protection against potentially expensive repair bills.
Depending on the program, extended warranties offer a varied range of coverage. Extended warranties typically cover repairs due to defects in materials or workmanship, but the level of coverage will vary widely depending on the provider, plan, and personal preferences. Warranty brokers provide a number of options with customizable coverage. Extended warranties often require an upfront payment or monthly premiums, and they typically include deductibles and exclusions for certain types of repairs or damage.
RV extended warranties cover components in your coach unrelated to an accident or incident. Instead, an extended warranty can help cover the cost of failed mechanical parts, many of which are known to have high repair costs. Items such as engine, transmission, refrigerator, generator, slide outs, and many more are examples of what can be covered under a typical extended warranty.
Differences between RV insurance and warranties
Legal Requirements
RV insurance is generally legally required, just like auto insurance, in most states. Be sure to check requirements with your state’s DMV or DOT. Required coverage typically includes liability coverage to protect you in case you cause damage to others or their property while operating your RV.
Additionally, if you have a loan or lease on your RV, your lender may require you to carry comprehensive and collision coverage to protect their investment. Failure to maintain the required insurance coverage can result in legal penalties, fines, or even the suspension of your driving privileges.
On the other hand, RV extended warranties are optional products that are not legally required. They provide additional coverage beyond the manufacturer’s warranty for mechanical breakdowns and repairs, but purchasing an extended warranty is a personal choice and not mandated by law.
Type of Coverage
RV insurance primarily covers risks related to liability, collision damage, uninsured motorists, medical payments, and personal belongings. Broadly, insurance protects you financially in case of accidents, theft, vandalism, natural disasters, and other covered events. RV insurance focuses on protecting you and your assets from unexpected losses and liabilities while on the road.
By contrast, RV extended warranties primarily cover mechanical and electrical failures of specified components. They typically cover the cost of repairs, labor, and replacements for things like the engine, transmission, appliances, and electrical systems. Some plans include additional perks such as trip reimbursement, mobile mechanic services, and emergency roadside assistance. Extended warranties are designed to provide peace of mind by mitigating the financial risks associated with costly repairs.
Term Length
RV insurance policies are typically annual contracts that can be renewed at the end of the term. You have the option to review your policy and adjust coverage limits, deductibles, and other policy features at the time of renewal to address any change in needs. As long as you continue to pay your premiums on time, RV insurance provides continuous coverage.
In contrast, RV extended warranties have fixed term lengths that can vary depending on the provider and plan. Extended warranties typically last between one and seven years, with term lengths depending on vehicle eligibility and the terms specified in the plan. Eligibility depends on factors such as model type, age, and mileage. Extended warranties may offer coverage for a specific number of years or miles, starting from the date of purchase. Once the extended warranty expires, coverage ends. If the vehicle is still eligible, the policyholder may be given the option to renew under the same contract or sign a new contract.
Combine both RV insurance and warranties
Supplementing RV insurance with an extended warranty has several benefits. Maximizing financial protection will help you achieve peace of mind on the road. Here are the advantages of combining coverage:
Enhanced Coverage: While RV insurance typically covers risks related to accidents, theft, and liability, an extended warranty provides additional coverage for mechanical and electrical failures of specified components. This comprehensive protection can help minimize out-of-pocket expenses for repairs due to unexpected breakdowns.
Peace of Mind: Extended warranties offer peace of mind by offering financial coverage for costly repairs. Knowing that you have coverage for major mechanical or electrical failures will alleviate concerns about potential repair bills and unexpected expenses while traveling.
Extended Protection: An extended warranty extends the coverage period beyond the manufacturer’s warranty, providing continued protection for your RV’s vital components as it ages. This can be especially valuable for RV owners who plan to keep their vehicles for an extended period or who frequently travel long distances.
Convenience: With an extended warranty from Wholesale Warranties, you can have repairs performed at any certified service center without worrying about negotiating repair costs or finding reputable mechanics. This streamlined process can save time, stress, and hassle, allowing you to get back on the road sooner.
Resale Value: Having an extended warranty in place may enhance the resale value of your RV, as it provides potential buyers with added assurance that the vehicle has been well-maintained and protected against unexpected mechanical issues. The new owner will need to purchase their own insurance plan, but your extended warranty will continue to serve the new owner until the end of the term. This can make your RV more attractive to prospective buyers, increasing its resale value.
Customizable Coverage: Extended warranties often offer customizable coverage options, allowing you to tailor the plan to fit your specific needs and budget. You can choose coverage levels, deductibles, and additional features to create a plan that meets your requirements and provides the right level of protection for your RV. An RV extended warranty covers what your insurance plan does not, safeguarding your budget from unexpected breakdowns.
Overall, pairing RV insurance with an extended warranty can provide comprehensive protection and peace of mind, ensuring that you’re prepared for the unexpected and able to enjoy worry-free travels in your RV.
Cost comparison: RV insurance vs. warranties
Cost depends on various factors, such as type of coverage, usage, and model type. RV insurance will take driver experience and driving record into account as well. According to Progressive insurance, the average premium for a 12-month RV policy in 2022 was $958 for motorhomes and $573 for travel trailers. Minimum liability policies started at just $125 per month.
RV extended warranty costs vary greatly depending on level of coverage, term length, model type, and model age. Through private warranty companies, customers have the option to customize the extent of coverage. Generally, an extended RV warranty will cost somewhere between $1,000 and $10,000. Customers will be given the option to pay in full upfront or make a deposit and follow a monthly payment plan. Investing in a trustworthy RV Warranty can extend the lifetime of your RV. Get a quote today.
Real-life scenarios of insurance and warranties in use
RV Insurance Claims
To use an insurance or warranty policy, both require policyholders to go through the process of filing a claim. Here is a breakdown of the steps for submitting and filing an insurance claim:
1. Submit a Claim
The first step to the claims process is submitting a claim. This can be accomplished over the phone, online through your account, or even on a mobile app.
2. Connect with a representative
Next, you will be assigned to a trained claims representative who will help guide you through the process. Your provider should be specially trained in handling RV claims. It’s a good idea to have your policy readily available so you can refer to it throughout the correspondence with your representative.
3. Schedule an inspection
The representative will then work with you to schedule a vehicle inspection. An estimator will meet you at your location—repair shop, home, or campground—to examine the vehicle and assess damages.
4. Receive an estimate
The claims representative will then review the estimate with you, explain any repair costs, and estimate how much you may have to pay. Payment will depend on the extent of your coverage plan. To ensure the process runs smoothly, have your title and other proof of ownership documents prepared. If you have a comprehensive and collision policy, you may have to pay a deductible if you are at fault. An insurance deductible is the amount of money you pay toward a claim before insurance steps in. This amount is explicitly outlined in your policy.
5. Schedule repairs
The final step is scheduling repairs for your RV at your convenience. If the vehicle is disabled, then the insurance company will help have it towed to a shop.
The insurance company will work with whichever repair shop you prefer. Some insurance companies have partnerships with reputable repair shops and can offer recommendations upon request. If you decide not to get your rig repaired, the insurance company will send you a check for the estimated amount, minus the deductible (if applicable).
RV Warranty Claims
Although similar to the insurance claims process, the warranty claims process is slightly different. Experiencing a breakdown can be stressful or even scary, but understanding next steps will keep you prepared.
1. Get to a safe location
First and foremost, make sure you and your family are in a safe location. If you are stuck on the side of the road somewhere, it would be best to move as soon as possible. Some RV extended warranty programs include mobile mechanic services. Otherwise, have the vehicle towed to a repair shop nearby.
2. Diagnose the issue
The mobile mechanic or service provider will need to inspect the RV to uncover the source of the breakdown. A warranty provider will be able to process the claim once a certified mechanic has provided a diagnostic report. The mechanic should not begin any work until the policyholder has called the provider for pre-authorization.
3. Pre-authorization and deductible
Before any repair work is completed, you will need to call the warranty administrator for pre-authorization. If you bought a program through a third party, note that the warranty administrator is different from the independent broker who sold the policy. Although Wholesale Warranties is a broker, we do have an in-house claims support team to help guide customers through the process. Upon authorization, the policyholder will pay a deductible. Some warranty policies offer a per-visit deductible, meaning that even if there are multiple diagnoses, you still only have to pay a single deductible.
4. Repairs
Once the deductible payment is processed, then the RV service representative can fix the vehicle at the expense of the warranty company. Wholesale Warranties accepts any licensed repair shop. To find a warranty-friendly provider, we recommend RV Repair Direct as a simple online locator tool.
Best RV insurance
In terms of RV insurance, there is no catch-all policy. There are various types of coverage and levels of coverage to choose between based on budgetary concerns, usage, model type, and so on. To choose the best insurance policy for your individual needs and preferences, make sure you research multiple companies to review coverage options, quotes, and customer reviews. Additionally, it is a good idea to consider a policy from a company that caters specifically to RVs. Motorhomes and trailers are very different from everyday autos and therefore require specialized coverage.
Best RV warranty
Similarly, you have options when it comes to RV extended warranties. The best warranty will be the one that best caters to your needs at the most reasonable price. RV warranties can be purchased from a dealer, but this only applies for new vehicles. Plus, dealers do not specialize in extended warranties; they specialize in selling RVs.
You may want to consider purchasing an RV warranty from a warranty broker. Brokers offer a wider range of options, such as levels of coverage, customizable add-ons, and additional protection plans. Like RV insurance, the best RV warranty will be a policy that suits your budget and travel lifestyle.
To know who to work with, research reputable companies with good reviews from accreditation bodies such as the Better Business Bureau, and make sure they have a track record of outstanding customer service. Moreover, it is recommended to buy a policy without a waiting period so that the coverage you paid for goes into effect immediately. A qualified representative should go over the terms and conditions so you are aware of all coverage exclusions and have a thorough grasp of the product and its limitations.
Most common claims in RV insurance and warranties
Of course, insurance and warranties cover different things. Whereas RV insurance covers accidents and damage, warranties cover defects and malfunctions. We have compiled ten of the most common claims in RV insurance and warranties. Claims often revolve around issues related to:
Accidents and Collisions: These claims pertain to insurance. A comprehensive and collision policy will cover damage from collisions with other vehicles, stationary objects, or even wildlife.
Weather-related Damage: RVs are susceptible to damage from hail, storms, floods, and other severe weather conditions. RV warranties do not cover damage resulting from inclement weather. More extensive insurance policies will help pay for weather-related damage.
Mechanical Breakdowns: Problems with the engine, transmission, electrical system, or other mechanical components can lead to claims. An RV extended warranty will cover mechanical breakdowns, but insurance does not.
Appliance Malfunctions: Electronic appliances are a common source of issues in an RV. Refrigerators, air conditioners, water heaters, and other appliances commonly found in RVs can malfunction and require repair or replacement. RV warranty holders should submit a claim for any appliance malfunctions.
Leakage and Water Damage: Roof leaks, plumbing issues, and water damage are frequent sources of claims, often due to aging seals or faulty installations. Insurance would address these issues if they were a result of an accident. A warranty would cover damage unrelated to regular wear.
Theft and Vandalism: Theft and vandalism are covered under more comprehensive insurance policies. RVs can be targets for theft or vandalism, especially if the vehicle is in storage for an extended period of time. This leads to claims for stolen items, damage to the vehicle, or both.
Roadside Assistance: Roadside assistance claims are very common. This encompasses towing services, tire changes, and battery jumps. Emergency roadside assistance is often included in both RV insurance policies and warranties.
Liability Claims: Liability claims are specific to insurance and very common. Every driver in the U.S. is required to have liability coverage. These claims are for accidents involving other parties where the RV owner is found at fault. Liability claims cover property damage and bodily injury.
Emergency Expenses: RV owners are often vacationing or even living in their vehicle when it breaks down, which means lodging accommodations need to be addressed during the claims process. Some warranty policies will cover the costs incurred due to unexpected situations such as breakdowns far from home, temporary accommodations, or emergency repairs. Trip reimbursement is a great warranty feature for travelers.
Personal Property Damage: Claims for damage or loss of personal belongings inside the RV, such as electronics, furniture, or clothing. Depending on the source of the damage, your insurance or warranty may cover personal property damages.
Being aware of these common claims can help RV owners choose appropriate insurance coverage and warranties to protect their investment and provide peace of mind during their travels.
Legal and financial implications of RV coverage
The legal and financial implications of RV coverage are significant and can vary based on several factors including the type of coverage, state regulations, and individual circumstances. Like auto insurance, most states require liability insurance for RVs. This coverage helps pay for property damage and bodily injury that you are legally responsible for in an accident. Without liability coverage, you could be held personally liable for damages, medical expenses, and legal fees, which could result in significant financial loss.
Uninsured motorist coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance coverage to cover your damages. Without this coverage, you may have to rely on your own insurance or pursue legal action to recover costs from the at-fault party.
Additionally, some states require Personal Injury Protection (PIP) coverage, which helps pay for medical expenses and lost wages for you and your passengers regardless of who is at fault in an accident. Without PIP coverage, you may need to rely on your health insurance or pay out of pocket for medical expenses.
On the other hand, RV warranties are not a legal requirement. This type of coverage is an optional supplement intended to maximize coverage and protect you from repair costs. Extended warranties provide protection in addition to your insurance coverage.
FAQs
What is the difference between extended warranty and insurance?
There are a few differences between an extended warranty and insurance, but the key difference is type of coverage. Insurance covers damage to persons, vehicles, and property involved in an accident or other incident. An extended warranty covers defects and malfunctions with the vehicles’ mechanical and electrical components.
What is not covered by RV insurance?
RV insurance coverage varies depending on policy type. Typically, insurance will not cover regular wear and tear damage, maintenance, unexpected breakdowns, or repairs unrelated to damage caused by an accident or incident outside the policyholder’s control. Delicate items or other valuables, such as artwork or jewelry, may also be excluded from coverage depending on the policy. Insurance will not cover intentional damage, belongings outside the vehicle (such as camping gear), or aftermarket modifications.
What does RV extended warranty cover?
The most extensive RV extended warranty plans, called exclusionary policies, will cover virtually every working component of the RV. This includes the engine, transmission, electrical systems, appliances, and much more. These warranties will cover every component that is not explicitly listed under exclusions.
What is not covered by an RV warranty?
RV warranty policies will not cover maintenance items, collision damage, cosmetic items, or upgrades. Warranties provide coverage to components that contribute to the vehicle’s overall function. Exclusions are aesthetic components or items subject to regular wear and tear. Some examples of exclusions are windows, upholstery, tires, and paint.
