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Recreational Vehicles Insurance

Recreational Vehicles Insurance

What Is Recreational Vehicles Insurance?

This refers to an insurance policy that covers vehicles used solely for recreational purposes against damage or liability under certain circumstances. This type of insurance does not provide umbrella coverage for recreational vehicles, but is broken down to meet specific type needs.

Who Is This Type Of Insurance For?

Whether or not this type of insurance is mandatory or optional is affected by the state that a vehicle is registered in, how and when the vehicle is going to be used, and the individual regulations of that state. Before buying any vehicle classified as “”recreational””, purchasers should become familiar with the requirements of both the states that they’re registering the vehicle in and other states (or countries) that they’ll be traveling through. Most states require insurance on recreational vehicles that are residences or being rented.

How Does Recreational Vehicles Insurance Work?

As with other insurance policies, recreational vehicle insurance protects owners from large costs paid out of pocket in the aftermath of an accident. This applies both to accidents where the driver is at fault, and accidents where fault is disputed or the at fault driver is under insured or uninsured. This type of insurance also offers some protection against wild animal damage, “”acts of God””, and breakdowns. As with personal vehicle insurance, there are limits or “”caps”” to the amounts that will be paid. In some cases, the policy holder must first pay a deductible before the insurance company will pay.

Different Types Of Coverage

This is very much a fluid type of insurance, as new recreational vehicles come out on the market all the time. Currently the main classifications are:

Motor Homes, Travel Trailers, And RVs

Policy amounts are affected by vehicle size, if the vehicle is being lived in, and the amount of time that it is being lived in.

Off Road Vehicles

This includes anything classified as an all terrain vehicle (ATV) or a snowmobile.


Policy rates are affected by size and type. The “”residency rule”” often applies here as well.

Personal Watercraft

Applies to jet skis and similarly sized motorized watercraft.

Benefits Of This Insurance

The single largest one is that it prevents policy holders from having to assume large amounts of debt. Another advantage is that it protects against the unforeseen when traveling, such as with damage from natural disasters or major repairs. And increasingly this is becoming a required type of insurance, meaning that it’s insurance that recreational insurance owners should definitely look into.