Reliable insurance is a must for your RV. Insurance protects you and your RV in the event of travel related collisions, loss or theft of your vehicle, damages from natural disasters, and more. RV insurance is not something to purchase on the spur of the moment. It is important to take some time to shop different policies and look at options carefully. In addition to this, check with other RV owners to see what may be best for your particular vehicle.
The best RV insurance policy will combine the function you need, be affordable, and be comprehensive. Insurance for your RV will look similar to a car and home policy combined together. It’s important to note that price of policies will vary depending on your location, RV type, condition of the vehicle, how it will be used, and more.
Picking an Insurance Company
There are a lot of RV insurance options out there. Some are national companies and others which are smaller. Check and see who has been around and how they have served their customers. You need the insurance company to be there in your time of need and that means a history of working with RV owners. In addition to this, it’s also helpful to call a company directly to get a quote and information. While there are third-party providers out there, it saves time to work with an insurance company yourself.
Take time to look at each insurance provider you are considering. How are their financial standings? Check each company to see how their ratings are by consumers and their own credit standing from at least four sources. Compare from several and see if they are similar. You want to know that if an emergency happens that the insurance company will be able to pay you and in a timely manner.
Coverage and Customer Support
The type of coverage you need for your RV will vary based on how you will be using it. It matters whether you will be living in the vehicle full time or leaving it in storage for part of the year. Basic insurance for an RV is similar to what you have for your car. It will include coverage of injury liability, damage to property, collision, comprehensive, motorists who are not insured properly, and medical payments. It’s also important to ensure that a plan covers your specific type of vehicle. Not all RV insurance will allow anything that is in tow.
Depending on your needs, it may be helpful to look at add on policies that are available. This may be for those who are living in their RV all the time. Others may want to make sure that roadside assistance is on their policy. Each provider will have different add on policies that you can put onto a basic plan that will help you to have less worries once traveling or living in your new RV.
When dealing with an emergency, the last thing you want to worry about is customer support issues. Prior to making a decision look around to see how you are able to reach an RV insurance company in a tie of need. Since you never know when something may happen, look for one that is able to be reached 24/7. Look at customer reports to see how they rate their experiences with making a claim. This process should not be difficult and it they will share how satisfied they were with the process.
Discounts, Deductibles, and More
When looking at the fine details of a plan, check to see what types of discounts an RV insurance may offer. Many have reward discounts that they will give to you if you pay your premium rather than take the installment payment option. Others may grant a discount for a clean driving record and/or taking an RV safety class. In addition to this, some RV insurance plans may give some discount for being a member of an RV association, keeping your vehicle in storage for part of the year, or switching from another insurance company. Ask ahead of time for specific discounts that are or may become available to you based on your location and RV.
Another important part of researching RV insurance is to know what your out of pocket expense will be should you make a claim. See what the deductible is going to be for any claim you make. Some companies offer add on coverage that will have a disappearing deductible. If you do not file a claim each year, they will drop your rate by a certain amount or percentage. Some companies will even move this to a zero-dollar deductible after several years. Know if there is a cap for the incentive ahead of time because they are all different. It’s also important to know that once you make a claim, the deductible will go back up if you need to make another claim in the future.
Technology is a perk and so are apps that connect you to your RV insurance policy. Check to see if the company you are researching has an app available in the Apple App Store and Google Play Store. Look at reviews about the apps. Not all are created the same. Some will allow you to report a claim, pay bills, and view your policy. In addition to this, there are some apps that will also connect you to an insurance agent and even request roadside assistance in an emergency. See what the reviews say about the process because they do not always work as smoothly as promised.
Research is crucial when selecting RV insurance. Make sure to investigate all options and know what limitations may be set by where you are located. Taking time now to select the right coverage will help should you need to make a claim during an emergency in the future.
Best Ways to Finance Your RV
Adventures on the wide-open road await you, but first you must determine how you will finance your new RV. Financing your RV is a process much like working on a mortgage for your home. It is important to understand the process involved. When financing your RV, you must be sure that you take several steps including checking that it works into your budget. These are some steps to help you find the best way to finance your new RV.
Check Your Credit Score
Your credit score is extremely important in the process of financing an RV. Prior to finalizing your plans, be sure to check and see what your current credit score is. Many people do not realize that credit scores directly impact not only the type of loan you can get, but also the interest rate you will be offered. Interest rate changes will cost you money in the end. In addition to this, your credit score will help to determine the term length and even if a loan is something that will be offered to you.
The best place to start is with a credit score report to see what your credit score is currently at. The highest credit score possible is 800. To qualify for the best RV financing, a score of at least 750 is optimal. A score above 640 is generally a good credit score and will still allow you to get a competitive loan offer. If you score is lower, don’t worry just yet. Credit scores between 550 and 600 will likely be given financing, but the interest rates will be higher. While rates do vary from state to state, someone with lower credit may be offered rate with 24% interest.
Be sure to check with a tax professional to see how financing an RV may be claimed on your taxes as a primary or secondary residence. This potential deduction is a reality for many. Since a recreational vehicle may be your second home, check what the terms may be while in the process of financing. Most will require the RV to have a bathroom, area for cooking, and sleeping section.
Budgeting and Getting the Best Price
When looking to purchase an RV, it’s extremely important to know what you are able to comfortably afford. In addition to warranties, insurance, and maintenance, you must be aware of how much you are able to afford in monthly RV loan payments. Factor in what amount of a down payment will be needed. Many times, it will be about 10 to 20% of the price of the RV. Paying more on the down payment may also change the interest rate on your overall financing. All of these factors help to save you money in the end.
Determine what your overall RV budge will be. Make sure you will not go above this amount when you are shopping for your new vehicle. It’s important to remember that you are not simply budgeting for right now. You will need to think about budgeting this amount for the life of your RV loan. Typically, an RV loan will be for 10 to 20 years. Take time to see if this is sustainable over the life of a potential loan. Making a reasonable now budget means that there will be less stress and you know you will be able to afford your new RV without any worries.
When you are actually shopping for your RV, another big factor in financing is making sure you get the best price for your vehicle. Do not assume that there is only one price and it’s listed. Often times, RV prices are set higher to allow for negotiations. It is expected for you to negotiate the price and often be able to get a significant price reduction on the RV. Simply asking what the lowest price offer would be may be the best approach. The worst outcome is they say they can’t work with you and you may have to look at another location. Remember that all of this is a huge investment, so don’t rush into anything before you are happy with the entire process. It’s also important to understand that an RV depreciates in value the moment you drive it away. This is why it’s even more important to stay within a reasonable budget.
Interest Rate Shopping
In the end, the most important factor in financing your RV may be the interest rate. An RV loan will be a large amount of month, so the lower your interest rate the more you will save over time. Look at a variety of places for financing options. Check different banks, credit unions, RV finance companies, and dealers. Until you look at all options, you will not know who will be the most competitive and help you to stay within your budget.
If interest rates are too high, it could be due to your credit score. It may be best to look at your credit score again to see what may be making it lower. Look and see what you may be able to fix to get your credit score to improve. There are ways to work at this to boost your credit score. By doing this. it will help you to get a better interest rate on your long-term RV financing.
While financing an RV may be a daunting task, it is a very important one. It’s something that you can’t take lightly from budgeting, credit score checks, to negotiating the price on your new RV. The more research you do ahead of time, the better prepared you will be one you are traveling and enjoying your new RV.