It's Time for Insurance 101

I want to take some time to break down the typical RV policy and discuss the various coverage options and why they are important. I'm going to do this several different posts so you don't fall asleep during class time.

Let's start with the basics. The typical first coverage you will find on any Auto or RV Policy is called:

Bodily Injury and Property Damage.

This is mandatory coverage in all states. This coverage pays for damages for bodily injury or property damage for which you become legally responsible because of an auto accident.

The important thing to remember here is that this coverage is for Other People. This does not pay for Your bodily injury, nor does it pay for damage to Your car.

Quite often I will get a request for basic state miniumum liability limits because the client has an old vehicle that isn't worth anything. Well you can kill or maim someone in an old vehicle just as easy as in a new one and that does not really have anything to do with what you are buying here. The important thing to remember is that you need enough coverage to protect your assets in the event that you do damage to someone else. State minimum liability coverage is typically $25,000 for injury to another person, $50,000 maximum per accident (more than one person in the car) and $10,000 for property damage which is typically the other person's car.

I will not sell state minimum liability coverage. Don't even ask me.

My suggestion to most RV'rs is at minimum $100,000 per person/$300,000 per accident and $100,000 property damage and preferably $250,000 per person/$500,000 per accident and $100,000 property damage. period. If $250,000 doesn't cover your assets then you should buy $500,000 per person and probably have a Personal Umbrella Policy which we will discuss in a different post. Liability coverage is cheap. Lawsuits are not.