Protect your RV with our RV replacement cost insurance. Give us a call to find out more choices for your RV insurance!
An RV can open up a new, exciting world of camping holidays, temporary residences, and more. It can be a comfortable alternative to camping or serve as a second home while you enjoy the freedom of the road. Many people get so drawn to the RV lifestyle that they make their RV their primary home!
Getting an RV can be a huge lifestyle change—and a sizable financial investment. And just like any investment, it’s a good idea to get the right insurance coverage to protect you from any unwanted expenses and risks.
Encore Insurance Group offers plenty of coverage options to suit any type of RV lifestyle. You can tailor your plan to fit your needs, giving you peace of mind while saving money.
Comprehensive vs. Liability Coverage in Michigan
In Michigan, every RV needs to have liability coverage. This type of insurance will pay for any damages or injuries done to third parties by your RV. It won’t cover your own expenses, repairs, or replacements, however.
While having liability coverage is the bare legal minimum, comprehensive coverage is often a better option, especially if you’re using your RV a lot. Comprehensive coverage protects your RV against non-accident damage such as fires, theft, vandalism, and other non-road hazards.
Many owners combine RV insurance, replacement cost, personal effects, and emergency expenses coverage to get maximum coverage in an emergency or accident. While it may be more costly than liability coverage, the peace of mind is well worth the added expense
Your insurance will have a method that determines whether it will repair or replace an RV after an accident. Typically, the company will declare the RV a total loss if:
- It’s impossible to repair the vehicle safely
- The repair value is more than 75% of the RV’s actual cash value
In most cases, insurance companies will give you the RV’s actual cash value (ACV) after declaring it a total loss. If you’re still financing your RV, the insurer will first repay the loan from the financing company and then give you the balance.
What’s the Difference Between Replacement Cost RV Insurance and Cash Value Insurance?
There is one major drawback to agreeing to get the actual cash value after a total loss. RVs depreciate over time, and the actual cash value is often much less than what you’ll need to replace your RV. Instead, you’ll have to pay in extra or opt for a less valuable RV as a replacement.
Getting equivalent RV insurance replacement cost coverage means that instead of getting cash, you’ll receive the same type of RV that was totaled. As far as possible, the insurer will attempt to find an RV with the same year, model, make, and condition as your totaled RV. If the company can’t find the same type of RV, they’ll refund you the original purchase price of your RV instead.
Choosing replacement cost RV insurance is often the better option in the event of a total loss. You’re much more likely to get a good replacement than having to scramble to find a cheaper RV that you can afford with the actual cash value payout you receive.
However, this benefit does increase the cost of replacement insurance, which will have a higher premium than ACV insurance. It’s up to you to decide whether it’s a cost that provides a worthwhile benefit to you.
Choosing the Best RV Replacement Cost Insurance in Michigan
As with any other insurance option, shop around to get a feel for the average cost of RV replacement cost insurance. Many insurance companies will also offer add-ons to your policy—such as emergency expenses coverage, pet insurance, towing and roadside assistance, and even attached accessories coverage for your satellite dishes and awnings.
At Encore Insurance Group, we have helped hundreds of Michigan residents protect their RV investment, and we can do the same for you. Give us a call at (248) 466-0200 or complete our online form today!