Tuesday 18 December 2007

Motorhome Insurance: Nine Golden Rules to Follow When Purchasing Insurance

Your motorhome is probably the second most valuable asset you own after your house. But study after study has shown that a large percentage of owners are underinsured. This can have costly consequences if anything should happen to your motorhome. Follow these Nine Golden Rules when considering insurance for your motorhome or RV to make sure that you have the coverage that you need.

1) Fully consider the risks that relate to when and where you use your motorhome. Motorhomes go to places that automobiles don't always go, such as campsites, river banks, forested areas. For instance, if you often park under trees then make sure you are protected from tree damage.
2) Make sure there are adequate limits within the policy to cover the high costs of repair and towing. Will these be sufficient when you live five states away from the incident?
3) Ensure you have adequate coverage for liability claims related to bodily injury and property damage. Liability claims are spiralling upwards every year.Is the coverage high enough to cover the potential liability? What coverage do you have on existing policies that might be applicable?


4) Check that there is coverage for damage or loss of contents as well as for add-ons such as awnings. Contents and add-ons can be extremely expensive to replace. Check whether the policy is 'new for old' or 'replacement cost only'. With the former you will get the value of item if you were to buy it today while with the latter you will only get its replacement value--or what the item is worth.
5) Investigate limits and conditions related to medical expenses, protection against other drivers and damage to your motorhome. Be sure that there is adequate coverage if you suffer damage caused by an uninsured third party.
6) Choose a reputable insurance company that has a respectable claim-to-payout ratio. A company with a low ratio will probably mean that it is hard for you to make a successful claim. You also want an insurance company that is going to be around when it's time to pay out!
7) Make sure you have flexibility in choosing a repair shop or that you are happy with the insurance company's choice. This will vary by state and county, so make sure you will be well represented if the worst happens.
8) Check what general exclusions the company has in its policies. Compare these exclusions with policies from other companies so you can be confident in the policy you choose.
9) Check for the level of incidental expenses allowed and that there is adequate provision for towing the motorhome back to base or providing alternative transportation.

Follow these Nine Golden Rules to make sure that you have the insurance coverage you need on your motorhome. That way, you can really enjoy the carefree life of motorhoming without the worry of insurance over you!

About the Author: This article was written by Piers Crispin, a writer on consumer affairs. Please visit motorhomes.car-buying-knowledge.com for more information on Motorhome Insurance, as well as information on Class A Motorhomes.

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