RV Insurance Deductibles and When to Pay Them
RV insurance can cover both the RV and residential portions of this unique vehicle. Often, you will have to buy it to legally operate the RV. The benefit is that if you have the right policy, then you can receive compensation for wreck damage. However, you likely won’t be able to receive compensation for 100% of your damage costs. Most policies will include deductibles that are the policyholder’s responsibility to pay. Let’s take a closer look at these deductibles and how they work.
How much will RV insurance pay me with a deducible?
When you file a claim on your RV insurance, the policy will compensate you either to repair the vehicle or replace it. However, the insurer might not offer you the full cost necessary to cover all this recovery value.
When you make a claim on your RV policy, the insurer will look to see if you have a deductible attached to the requisite coverage. When they calculate your settlement, they will subtract this deductible from your final payment. As a result, you will be responsible for paying this portion of your repair costs on your own.
How does the deductible work?
Only certain parts of your RV insurance will include deductibles. Usually, they apply to settlements the policyholder receives for their vehicle damage. They don’t apply to liability coverage that pays others when the insured driver is at fault for wrecks.
Suppose that you have a $1,000 deductible on your RV’s collision insurance. Following a wreck, you file a claim on your collision coverage for help repairing the vehicle. Your insurer will review the damage and work with a repair service to estimate the total cost of repairs.
Perhaps in your case, they determine that it will take $3,000 to repair the car. They will calculate your settlement by deducting the deductible value from the claim. In your case, your policy will subtract the $1,000 deductible from the $3,000 damage cost. Therefore, your settlement will equal $2,000. Because you agreed to bear $1,000 of the damage costs by choosing that deductible, you must pay that amount. Can deductibles help me save money?
In some cases, by choosing a higher deductible you can qualify for a lower premium. However, the thing to remember about a deductible is that you want it to be affordable. This is a cost that you have to pay on your own, after all. If any damage claim falls below the value of the deductible, then your insurer will refuse to cover you at all. Therefore, never try to choose a high RV insurance deductible just because it might help you save.