RV Daily explores 10 crucial points to guide tourers through the insurance minefield without losing an arm and a leg.
By Anthony Kilner
Insurance is a prickly subject. People resent having to pay for something they can’t actually see or feel the benefit of. In the event of an accident or when it all goes wrong, how much effort you put in to organising the right cover for your RV – as well as your tow vehicle – will be something you can feel secure about.
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While there are plenty of online discussions about insurance situations there is an underlying theme in all of it and that’s of disclosure…it’s paramount. People love to tell you how things went wrong, but how much of the story are you actually being told? Yes, insurance companies will look for every get-out clause, but in many unreported cases they often pay up without a public enquiry. It’s all about the groundwork and the fine print. Take care of both and chances are you will be fine. If you cut corners, literally and figuratively, you’ll come a cropper.
Check out the 10 points below for your best chance of coming out with premium service.
1 – Who do I call?
There are a raft of insurance companies and insurance brokers that can arrange the right insurance policy for the right price. It may take more time and effort than calling a number from a TV ad, however, in the long run it will pay to spend the time to secure a specialist and get tailored options. Just don’t forget to read the fine print.
Some companies now offer multi-policy discounts, which could save big bucks and heartache if there’s an accident involving you as the driver while towing a caravan. The last thing you need is two insurance companies disputing who pays for what. Saving money by having both vehicles insured by the same company starts to make sense.
Insurance companies will take into account previous claim history, age of all drivers, extra benefits included in the policy, even the payment method to allocate a premium, it’s all part of the process.
There are things you can do to reduce a premium. Ask the insurance company if it offers a discount for completing a recognised towing course and for safety gear such as anti-swerve control system like the AL-KO ESC or stabilising bars or an alarm system and a good driver record – it can’t hurt to ask.
2 – Agreed or market value policy?
Some companies only offer a market value policy plus. The plus will include such things as modifications, canvas awnings and annexes. These policies will take into account the age and condition of the RV being insured.
The advantage of an agreed value policy is that the RV can be insured for what it is worth, including all extras. The problem is that an insurance company either might not agree to cover the RV to that value or if it does the policy premium could be expensive.
Some insurance companies offer a new for old replacement policy on RVs up to two years old, similar to that offered for cars. This could be a good option for newbies to the RV touring field where the possibility of an accident is higher due to a possible lack of experience.
If you travel with a bike (motorised or pedal powered) inside the van, outside the van, or a car being towed behind a RV you need to ensure your policy covers this as an extra.
3 – Where is the RV parked?
Not everyone travels 12 months of the year and where the van is stored or lived in, in the case of an on-site van, is important. There are a variety of scenarios to consider: is it parked in a garage/shed, under a carport, out in the open, on the street or on the property.
Does the RV get left at a caravan park while the owners go off for an RV free adventure? Does the insurance company have a time limit for how long an RV can be left at a location and still be covered or does the caravan park have its own policy for stored vans?
Who covers the RV if it is left at an RV specific storage yard? Will the RV storage yard have its own insurance for theft and/or damage from a van being moved or will the insurance company cover that? Will the insurance cover storm damage if it’s in a uncovered yard ?
Another point to consider is if a van is stored what happens when components fail through deterioration or lack of use or water damage from a leak. Insurance companies will generally not cover these types of claims so storage care is critical.
The insurance policy for a travelling RV and one that is on a permanent site is also another point of difference. Some insurance companies don’t cover on-site vans while others do.
4 – ON AND OFF-ROAD?
Many off-road vans on the market may not be designed to go seriously off-road like a camper and 4WD might but they are built to handle hours of dirt roads, corrugations and whoop-de-dos without falling apart.
On-road vans are really designed to stay predominately on the blacktop with the odd dirt road to get to a campsite. But where a van can be taken without breaching the policy? Will the policy cover water damage from driving through a creek or river crossing? Will it cover damage on the inside of the van if the fridge or oven falls out from rough road travel?
What happens if you get caught out on a track that has a dead end or if you end up with nowhere to turn around?
Then there is the possibility of having an accident on private property where you may be seen as trespassing. This also relates to gazetted tracks versus private or if off-road without any tracks. Many insurance companies only cover drivers on gazetted roads and tracks, which are roads on maps that are for public access (although some may require permission to travel on them).
5 – ACCIDENTS WHILE TRAVELLING
Basic online stats suggested that drivers’ causes a high percentage of the damage incurred to RVs on road. Reversing into a pole or another vehicle is common, as is turning too sharply and hitting something. These claims will be pretty straightforward but a serious accident will be investigated thoroughly. If you tow or drive when the RV is not in roadworthy condition it might void your cover.
A policy might also dictate that after an accident approval is required before a person continues on their journey. This checking and approval would be organised by the insurance company and leads to the question of approved repairers – you may not get a choice of repairer and you need to find a policy that allows you to specify yours.
6 – WHAT HAPPENS WITH BREAK IN OR THEFT?
The fine print on one policy we checked states that if the van is stored at home in the open then it should be secured against theft with wheel locks or coupling locks. It also advised that if there is no sign of forced entry and/or the RV was not locked then the theft will not be covered. Additionally, if items were stolen from within an annexe that was not shown on the policy then those items will be not covered.
There are also clauses to cover selling your RV personally and/or on consignment. Theft of vehicles during a road test or via scammers is becoming a problem for insurance companies.
7 – INSURED EVENTS
These events cover accidental damage, intentional damage, storm or flood, fire, theft and earthquake. Some policies have Extra Cover, which consists of items such as emergency accommodation, transport and repairs, legal liability, towing costs, locks and keys, internal contents, caravan park fees, solar panels, antennas and more.
There could well be optional cover, which includes tools of trade, caravan contents upgrades, burn out of electric motor, etc.
While there are lots of inclusions there is also a list of general exclusions. The devil is in the detail here to ensure you are insured correctly.
8 – LISTING THE DRIVERS – IS IT IMPORTANT?
The question of drivers, ages, skill levels and years driving will all have an impact on the premium. Being honest and nominating who is driving and towing will generally impact the excess. For example two nominated drivers may have an excess of $500 in the event of a claim. Having a claim with a non-nominated driver or a driver under 25 years of age, could send that excess up to $1000 or more depending on the policy. Many insurance premiums can be reduced by upping the excess on a claim.
9 – WHAT ABOUT ROADSIDE ASSISTANCE?
Roadside assistance is becoming a major player for insurance companies to attract business. Not all policies include roadside assistance for people towing a caravan or camper. If the vehicle breaks down what happens to the caravan?
Another point to consider are the weights of the tow vehicle and caravan if one or both require towing. In remote situations this could be a major factor. Ensuring you are covered for this and the vehicle and/or RV can get to a major town for repairs safely and with a minimum of fuss is important. A multi-vehicle policy with car and caravan could alleviate this problem easily.
10 – LONG-TERM TRAVEL?
This might seem an odd question to consider and is not strictly relating to the RV, however, will your home insurer, if a home is still owned, cover a home that is either not occupied or occupied part time by family members rather than being rented out.
A question that does relate to long-term travel is business insurance for the RV. There are people who run a business from their RV while on the road. Will the insurance company cover you for loss of business in the case of an accident or damage to the van?
It’s important to remember that it’s the owner’s duty to declare what they are doing with their RV to ensure the insurance company will pay out accordingly. If you don’t, they won’t!
