Individuals that purchase an RV to travel from place to place will need to purchase insurance coverage for the vehicle. The cost of the policy can vary from insurer to insurer because of specific underwriting criteria and the type of discounts that are available. When shopping for an RV insurance policy is it important to know what factors and criteria an insurance company uses to determine the cost of the policy.
Vehicle Use
A RV can have two kinds of uses when looking for an insurance policy for the unit. There are people who live in a RV full time and those who use it for recreation only. The type of use for the vehicle will affect the cost of the insurance policy. People that live in the RV full time are going to be exposed to more risks that those who only use one for recreation.
Storage
Storing the RV when it is not being used can also have an effect on the cost of an insurance policy. This is because most insurance companies base rates on specific locations by using a zip code. Certain areas are going to have higher insurance rates that others based on the amount of claim activity. Money can be saved on the cost of an insurance policy by keeping an RV in a location that is away from a home or business.
Deductibles
All types of insurance policies including those for an RV have various deductible options that are available. The deductible that is selected can have a significant affect on the cost of insurance for the RV unit. The deductible should be based on the amount an individual can afford to pay for various types of damage. The typical deductible is about $500 but a $1000 will can lower the cost of an insurance policy significantly.
Type of Unit
Insurers rate the type of RV unit that is being driven. They may use a numbering or class system just like they do for various types of automobiles. Most RV units range from a class A to a class C depending on the type of unit. An RV that has more options available and is going to cost more to insure will have a class rating of A. Units that are cheaper to insure will be rated either a B or C accordingly.
Driving History
Obtaining insurance for an RV is just like obtaining insurance for any other type of automobile. An insurer will look at various types of underwriting criteria which includes the driving history of the insured. A driver that has no tickets, violations or claims will have a lower premium that a driver that has been in an accident or has made multiple claims on a policy.