INTRODUCTION

Recreational Vehicle Insurance

For most Americans Recreational Vehicle insurance is a very expensive purchase.

to make an informed decision you should learn as much as you can about the

underwriting factors that affect the cost, the different amounts of coverage available,

the requirements in your state, and about what insurance companies have the best

rate for you.

Underwriting Factors

Insurance companies underwrite to assess risk associated with an applicant.  That is,

what groups are at a higher risk to make more claims?  The groups with a higher claim

history will pay more for Recreational Vehicle insurance.  Underwriting factors that affect

cost are:                                                                                                                                                           46 Years Experience

                                                                                                                                                                  U.S. Licensed Agent/Broker

                ◘ Driving Record – Drivers with previous traffic violations and at fault accidents

                   Would be placed in a higher risk group.

                ◘ Marital Status – Claims among married policyholders are less than single

                   policyholders putting them in a lower risk group than single policyholders.

                ◘ Residence – The location where you garage the vehicle (usually your residence)

                   also affects the rates.   More claims are made from urban areas than rural areas.

                ◘ Age and Gender – Some age groups fall into higher risk groups.  Males have more

                   accidents than females. Teenagers have many more accidents than the rest of the

                   population.  A small number of states have prohibited insurance companies from

                   using gender as a risk factor.

                ◘ Use of Vehicle – Higher annual mileage will usually result in higher cost because of

                   The higher exposure to risk. 

                ◘ Type of Vehicle – The type and cost of the vehicle you drive will affect the cost of

                   the insurance.

                ◘ History of Prior Coverage – If you were cancelled because of non-payment of premiums

                   from a prior insurance company your rates in some states might be affected adversely.

                ◘ “Better Risk Discounts” – If you qualify, discounts you should ask for:

                                Multiple Vehicles

                                Good Student

                                Safety Devices -  Automatic seat  belts, Anti-Lock brakes, Air Bags, etc.

                                Drive a  low amount of miles each year

                                Good Driver

                                Anti-theft devices

                                Driver Education courses for young and old drivers

                                Vehicle and Homeowners policies with same company

                                Dividends

Depending on the type of legal and financial responsibility system used in your state, you will need to purchase either recreational vehicle liability insurance or no-fault insurance.