Insurance Companies Have The Upperhand

[LivingLikeEachDayIsMyLast]

Seven years ago when I bought my class A motorhome, I insured it through State Farm. It was covered for the value of it at the time of purchase. Today the value is much less than I actually owe on it. In reality if it were totaled out today they would only pay the book value of today leaving me a healthy sum to pay out.

Hopefully I don't get into any serious accidents until it's paid for.

[Guest BillAdams]

You sound surprised.

[LivingLikeEachDayIsMyLast]

You sound surprised.

Actually I thought at the time it would be covered like my house,which is full replacement value. I didn't even consider the value would drop so fast.I'm not blaming anyone but myself,although I would have appreciated my insurance agent explaining how it all works.A lesson learned,ask questions if you don't know.

[jmonroe]

There's a big difference between your house and your motor home. Typically the house appreciates in value, your motor home is depreciating every day you own it. Your home owners premiums have probably gone up most years too, to cover the ever increasing cost to replace your house, should the worst happen. Your motor home coverage typically stays relatively level, in part because even though repair costs go up, the value is going down.

You can get replacement cost coverage for a motor home. I recently got a quote from Good Sam / GMAC. It will replace a lost RV with a new one if the worst should happen within the first 5 years (there after it would pay you your original cost). It is considerably more expensive than the coverage you have now. In my case it would have cost $600 per year more than my State Farm policy for my Jeep and motor home (they require that all vehicles be covered on their policy), and WI has among the lowest of premiums. Yours could be much more.

[jrwitt]

Not sure if it is applicable for RVs, but check with your dealer and your finance company to see if they offer gap insurance. I have purchased it for the last two cars I bought. If your car is totaled, the gap insurance pays the difference between the insurance settlement and your loan balance. It may not be available for RVs or it may only be available if taken out at the time the loan is made (when the vehicle was purchased or refinanced). I am way upside down on my minivan loan, but if it is totaled, the loan would be paid off between the insurance check and the gap insurance. The car is financed through Toyota and I believe the gap insurance was from the same source, but not sure. The dealer arranged everything.

Worth checking into.

Jack

[moonwink]

There's a vast difference between automobile insurance and RV insurance. When I bought our MH (in Nov 2001), I called the agent that handled my car and told him to insure the MH - big mistake! A year later, Allstate wanted another $200 more to renew. I started doing some research - calling all the insurance companies that advertise in the FMCA magazine. I got an education along the way and found out I was overpaying for the coverage I was getting and it wasn't covering as much as it should. I switched to a company that gave me all the RV coverage I could ask for and still saved $500 the first year and every year since. I still got total lost replacement for the first 5 years and purchase price coverage since then. Luckily, I figure my payments have just about kept pace with depreciation so we wouldn't be too bad off anyway but, I really like knowing we have the purchase price coverage as well as several other very RV specific coverages and it's saved us a lot of money along the way. Soon afterward, I saved a bunch more by switching my cars away from Allstate also - and then my homeowner's policy to finish things off. One of the best moves I ever made. I suggest others do the same research I did.

I've only had one claim - when I turned sharply in a gas station to get to a pump at 90 degrees to the store front and the swing-out clipped a parked car (my bad). They fixed the damage on the car and my motorhome (the diminishing deductible took care of my share) without any problems. Now I'm two years (1/2 way) into building up my diminishing deductible again.

[Bowiesmom]

We just bought our coach this year. I was raised with State Farm for every insurance need. But after we were dropped after 3 hurricanes in a month took our roof, we were dropped. Not a fan these days!

We have replacement value as well. The company is Blue Sky I believe. You should look around.

[phespe]

Not sure if it is applicable for RVs, but check with your dealer and your finance company to see if they offer gap insurance. I have purchased it for the last two cars I bought. If your car is totaled, the gap insurance pays the difference between the insurance settlement and your loan balance. It may not be available for RVs or it may only be available if taken out at the time the loan is made (when the vehicle was purchased or refinanced). I am way upside down on my minivan loan, but if it is totaled, the loan would be paid off between the insurance check and the gap insurance. The car is financed through Toyota and I believe the gap insurance was from the same source, but not sure. The dealer arranged everything.

Worth checking into.

Jack

GAP Insurance: Safe-Guard

They have a brochure that I got my dealer's that shows "SAFE_GAP Total Loss Protection". When I looked at their We Site I didn't see that product

They also list a # 800 742-7896 so maybe a call to them will provide info

PHE

[jimmierteet]

I have had Blue Sky RV Insurance since I found out about it 4 years ago from other fulltime RVers. I had a Class C and now have a Class A DP (2000 Georgie Boy Cruise Master). I can't ever see changing to another RV insurer; every claim I've had with them (3 now) has been handled smoothly and efficiently (including my latest $6k claim for a lot of rear and pass side fiberglass work due to a collision. It provides trip interruption and all other "luxury" coverages available for motorhomes at premiums that are less than half of Good Sam's ESP and VIP. FWIW, you may want to look into this company online and make your own decisions.

Jim & Joy

Natasha & Penelope

[ragftw]

Another agent that is familiar with RV insurance is Ron Jarvie out of Scottsdale. He is working up a policy for me which is considerably less expensive that my GMAC quote through Good Sam.

Overland Insurance Services

480-994-9584 or 800-677-4027

ron@rvins.com

[cindergal]

Another agent that is familiar with RV insurance is Ron Jarvie out of Scottsdale. He is working up a policy for me which is considerably less expensive that my GMAC quote through Good Sam.

Overland Insurance Services

480-994-9584 or 800-677-4027

ron@rvins.com

[cindergal]

When we lost our American Coach due to a defective NorCold refrigerator, GMAC paid us what they thought the motorhome was worth in a "depressed economy". We were left holding the bag for almost $30,000 that was not covered (what we owed the bank and what the coach was worth). We were not aware of "gap" insurance when we purchased the coach, but I cannot stress how important it is. We would not be paying on a non-existant motorhome if we had had it at the time of loss. Now we are covered with gap insurance and would like to look in to full replacement, as even with gap insurance it is difficult to find the cash for another down payment.

By the way, even though NorCold was 100% to blame, they do not feel that they owe us anything other than what the GMAC paid!

[tbutler]

The way this works is that GMAC is likely now suing Norcold for their responsibility. They will recover as much of the money they paid you from Norcold as they can. You surrendered your ability to sue Norcold when you accepted the payment from GMAC. The opening entry in this discussion: The insurance companies have the upper hand...

By the way, our Norcold went to the trash heap in May! We now have a residential refrigerator. I'm sleeping better!

[retiredblade]

There's a vast difference between automobile insurance and RV insurance. When I bought our MH (in Nov 2001), I called the agent that handled my car and told him to insure the MH - big mistake! A year later, Allstate wanted another $200 more to renew. I started doing some research - calling all the insurance companies that advertise in the FMCA magazine. I got an education along the way and found out I was overpaying for the coverage I was getting and it wasn't covering as much as it should. I switched to a company that gave me all the RV coverage I could ask for and still saved $500 the first year and every year since. I still got total lost replacement for the first 5 years and purchase price coverage since then. Luckily, I figure my payments have just about kept pace with depreciation so we wouldn't be too bad off anyway but, I really like knowing we have the purchase price coverage as well as several other very RV specific coverages and it's saved us a lot of money along the way. Soon afterward, I saved a bunch more by switching my cars away from Allstate also - and then my homeowner's policy to finish things off. One of the best moves I ever made. I suggest others do the same research I did.

I've only had one claim - when I turned sharply in a gas station to get to a pump at 90 degrees to the store front and the swing-out clipped a parked car (my bad). They fixed the damage on the car and my motorhome (the diminishing deductible took care of my share) without any problems. Now I'm two years (1/2 way) into building up my diminishing deductible again.

You failed to tell us what company you switched to?

[windchaser]

Hi All:

1. I am a veteran, insured by USAA for 39 years. auto, home and at one time a large sail boat. (no boat now).

2. They will insure any and all honorably served veteran no matter how long the length of service or what branch.

3. They do not insure Motor home or boat now as in the past. They farm this out to Progressive thru their General Accounts firm (USAA Progressive Branch).

4. Progressive has " 0" deductible after four years of no claims.

5. My motorhome cost $55K four years ago (No claims so far). Originally my insurance was $500.00 for several years with $250 deductible. My insurance this year is $431.00 for 55K for 12 months, with "0" deductible. However, this is only because I have had no claims for the past four years.

6. A final note you will find out more about your insurance company then you want to know after you have a major claim. After "Hugo" I had claims on home, boat and two cars. USAA made no hassle at all and paid up nicely.

7. In insurance I think you get what you pay for if you are with a good company.

[moonwink]

retiredblade said: "You failed to tell us what company you switched to?"

My intent wasn't to try to sell the company I ended up going with but to encourage everyone to start calling around and shop their insurance among the companies that advertise in the FMCA magazine (to start with) and any other RV related media they frequent. All the brokers that offer Progressive should give you the same quote if they're quoting the same coverage.

Rates vary widely by garaging address and full/part time usage. Everybody needs to do their own homework.

There's a lot to learn at these websites for starters - I make no recommendations here:

AON RV Insurance vs Auto Insurance

Progressive RV Insurance Coverage Options

Specialty RV Insurance Policies vs. Typical Auto Policies

RV Insurance Considerations - RV Dreams.com

RV / Motor Home Insurance Explained

[ragftw]

Moonwink is right on target when he says everyone should do their own investigaton. About 2 months prior to my GMAC coverage expiring I sent emails to every broker and company listed in FMCA. About half of them replied and I eventually cut that number to 11 brokers and companies that I provided enough data for them to provide a quote. Long story short after 45 days my decision became obvious based on coverage, price, and confidence in the company and most especially the broker.

I was amazed at the range of quotes I initially received. We are talking DOUBLE from lowest to highest for the same coverage!

IMO a broker is better than going direct to a company. Why, because his future business relies on keeping me happy. So if any negotiations need to be comleted while settling a claim he will be more likely to look out for my best interest.

Another thing I learned was you DO NOT always get the same quote from different representatives of the same company. The company that I eventually went with through the broker also sent me a quote which was about 10% higher than the one I got through the broker.

I should add that I am not a full timer, yet. I was looking for rates based on less than 150 days a year useage.

I would also like to add that I could not as a veteran consider Progressive. Do a snopes search for Peter Lewis, the Progressive founder, and you will understand my position. (Does the name George Soros mean anything?)

Good luck to you all in your search and feel confident that your efforts will be rewarded!

[sdennislee]

Moonwink is right on target when he says everyone should do their own investigaton. About 2 months prior to my GMAC coverage expiring I sent emails to every broker and company listed in FMCA. About half of them replied and I eventually cut that number to 11 brokers and companies that I provided enough data for them to provide a quote. Long story short after 45 days my decision became obvious based on coverage, price, and confidence in the company and most especially the broker.

I was amazed at the range of quotes I initially received. We are talking DOUBLE from lowest to highest for the same coverage!

IMO a broker is better than going direct to a company. Why, because his future business relies on keeping me happy. So if any negotiations need to be comleted while settling a claim he will be more likely to look out for my best interest.

Another thing I learned was you DO NOT always get the same quote from different representatives of the same company. The company that I eventually went with through the broker also sent me a quote which was about 10% higher than the one I got through the broker.

I should add that I am not a full timer, yet. I was looking for rates based on less than 150 days a year useage.

I would also like to add that I could not as a veteran consider Progressive. Do a snopes search for Peter Lewis, the Progressive founder, and you will understand my position. (Does the name George Soros mean anything?)

Good luck to you all in your search and feel confident that your efforts will be rewarded!

As a Veteran and an American, I agree with this poster, Boycott Progressive and anything Peter Lewis is involved in.

[carlpeterson]

Hi All:

1. I am a veteran, insured by USAA for 39 years. auto, home and at one time a large sail boat. (no boat now).

2. They will insure any and all honorably served veteran no matter how long the length of service or what branch.

3. They do not insure Motor home or boat now as in the past. They farm this out to Progressive thru their General Accounts firm (USAA Progressive Branch).

4. Progressive has " 0" deductible after four years of no claims.

5. My motorhome cost $55K four years ago (No claims so far). Originally my insurance was $500.00 for several years with $250 deductible. My insurance this year is $431.00 for 55K for 12 months, with "0" deductible. However, this is only because I have had no claims for the past four years.

6. A final note you will find out more about your insurance company then you want to know after you have a major claim. After "Hugo" I had claims on home, boat and two cars. USAA made no hassle at all and paid up nicely.

7. In insurance I think you get what you pay for if you are with a good company.

[carlpeterson]

I have my RV insured with USAA. I checked this AM and I have not been passed on to Progressive. I have been with them for 56 years so maybe I got special treatment. They have always treated me fairly on any Auto or RV claims. They don't carry my home insurance because of the county I live in (Brazoria) near the Gulf Coast. My premium is $900.00/yr. for full coverage on a 2006 33ft. Safari Simba.

[pattexaco]

Hi,

I also have insurance through USAA, as a retired army officer and have been with them for 30 years. I don't have H/O insurance because, of living on the gulf coast of LA.

But, I did have insurance with Progressive because, USAA does not insure M/H. I have since purchased another M/H and insured it with Blue Sky, Progressive kept ratcheting up their rates. I can't believe USAA would make an exception since you have been with them for so long. If they did, good for you, but could open a big "can of worms" for them since they do not stipulate, "if a member is with us for X number of years," we will cover your RV. I also swear by USAA for their service and products.

I have my RV insured with USAA. I checked this AM and I have not been passed on to Progressive. I have been with them for 56 years so maybe I got special treatment. They have always treated me fairly on any Auto or RV claims. They don't carry my home insurance because of the county I live in (Brazoria) near the Gulf Coast. My premium is $900.00/yr. for full coverage on a 2006 33ft. Safari Simba.

[jaaybird]

If the motorhome is still "being paid for", there is nothing you can do....

BUT

If like me, and it is PAID OFF, contact your insurer ( or another one)

and get a policy with an AGREED VALUE.

[theoldman]

State Farm has GAP and it was what I had for years. Till I got this Class A and looked around. And I got more ins. on the A than I had on the Tk. and for 1/2 the cost.

Get your ins. from someone that counts on RV'a not someone that does it to get your money.

And Progressive I don't like all the money they give to " Move On .org." ck. out Peter Lewis

I think that is the name.