Protecting Against the Cost of Depreciation of Your RV

RV Education 101 feels that prevention is the best protection. We also feel that by adding some real life stories of RV insurance claims, we can help educate you and bring awareness regarding subjects that you may never have considered.

Insurance Corner: Learning About RV Insurance Through Stories and Examples

Protecting Against the Cost of Depreciation of Your RV

When you drive your RV off the dealer lot, it begins to depreciate immediately. If you experience a total loss of your RV once it has depreciated, the value of your RV will be much lower than the cost to replace it.

Specialty RV Insurance companies like National Interstate offer coverages to protect RV owners from the effects of depreciation in the event of a total loss. One such coverage is Purchase Price Guarantee. With this coverage, in the event of a total loss, the insurance company will pay the RV owner the purchase price they paid for the original vehicle towards the purchase of a replacement vehicle. This amount is nearly always greater than the Actual Cash Value of the vehicle. If the RV owner did not have Purchase Price Guarantee, the insurance company would only pay the RV Owner the Actual Cash Value at the time of the loss.

Here is a real life example of the positive impact of Purchase Price Guarantee. An owner of a 40’ 2000 American Coach Eagle was in Mississippi in 2006 when their RV caught fire and was destroyed. The individual had a National Interstate Insurance Company policy through Explorer RV Insurance Agency, Inc. The Actual Cash Value of the RV was determined to be $159,635. The RV owner, however, paid $296,000 for the RV 6 years earlier. If the individual not had Purchase Price Guarantee, the insurance company would have only paid $159,635. Fortunately, the owner had this specialty coverage. The insurance coverage paid $289,694, the cost of the new RV, when the destroyed unit was replaced with a 40’ 2006 American Coach Eagle. By purchasing this additional coverage, the owner saved $130,059. The owner could have received up to $296,000 for a new unit had the owner purchased a more expensive replacement.

Your RV insurance can and should fit your RV. To get a free RV insurance quote with absolutely no obligation from Explorer RV Insurance Agency, Inc. call 1-888-774-6778. http://www.explorerrv.com

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