Is the extra insurance coverage worth it?

[MikeStarr]

We are 6 months or so out from buying a large Class A to full time. We are still doing tons of research but narrowing things down and are zoning in on a Tiffin Phaeton 40'.


So I called my insurance company yesterday to find out what options are available and get a ballpark quote. I know there are lots of variable so Im really only interested in opinions on whether the higher level of coverage is worth the price.


Basically the ballpark quote for Cash value coverage for my area and the motorhome that I told to quote was about $3000 for the year. The problem of course is if there is a total loss, there is a wide range for what they could consider to be "cash value" of the motorhome. I will say that I had a totaled car last year and they gave me more than I expected.


The higher level of coverage costs an additional $600 for the year. If there is a total loss while the motorhome is in the first 4 model years of age, they pay for a comparable motorhome. If we bought a 2019 model in 2020....and it was totalled in 2021, they would pay for a 2020 year model of the same model rig. We bought a 1 year old rig so they replace it with a 1 year old rig.


From model years 5-8 of age, if there is a total loss, they pay us the original purchase price (which obviously could be considerably more than its worth at that point).


After it is 8 model years old, the coverage reverts back to the lower level covered (cash value).


Thoughts?

[steve52]

So for 20% more you basically get replacement value insurance. Sounds reasonable. But...

I wonder... would having this policy rider influence their thought process when deciding whether to repair a damaged vehicle? "Totaled" usually means "costs more to fix than the book value of the vehicle".

Since the company could end up paying more--perhaps significantly more--than book value of the MH if they total it, would they push to repair a "totaled" coach, if it saved them money?

[Fiesta48]

I've dropped everything except high liability.
RV sits 98-99% of the time.
No accidents in last 20 years.
We drive slow so everyone does not want to be near us.
Wasted $70k on insurance with no return on investment in just the last 10 years.
Carry a large slush fund.
Make interest on my money.
Can fix almost anything.

[MikeStarr]

Originally Posted by steve52

So for 20% more you basically get replacement value insurance. Sounds reasonable. But...

I wonder... would having this policy rider influence their thought process when deciding whether to repair a damaged vehicle? "Totaled" usually means "costs more to fix than the book value of the vehicle".

Since the company could end up paying more--perhaps significantly more--than book value of the MH if they total it, would they push to repair a "totaled" coach, if it saved them money?

I dont think this is the same as replacement value.


If we paid $200,000 for a one year old motorhome. Lets say its a 2019 bought in 2020.


And it gets totaled in 2022. It may be worth what? Maybe $170,000?


Replacement value is $170,000 isnt it? This insurance pays for another 1 year old same model motorhome which would cost maybe $210,000 including inflation.


Plus when the motorhome is 5-8 model years old, the insurance covers full original purchase price. Im no expert but surely thats not the same as "replacement value".


My understanding is the lower cost insurance is replacement value.

[powerboatr]

ours through farm bureau is an agreed on cash value each renewal,

our bus is 11 now. So i see the value dropping again in may. insurance wise.

we still pay entirely to much in insurance IMO overall because of other drivers


our two vehicles and the bus are now on the same policy, and we pay just under 1200 for 6 months. funny thing is the expedition is the costliest one to insure



shop around and find what makes you happy.

[Mudfrog]

My understanding is the lower cost insurance is replacement value.

"Lower cost insurance" sounds like what most of us buy for our vehicles. It pays ACV (actual cash value), what the insurance company says the vehicle is worth at the time of the loss. I don't know what they use to figure this amount but it's usually less than what we think our vehicle is worth.

Some people buy a policy with an agreed value. The insurance company and the policy holder agree on an amount when the policy is bought. It pays the total amount that was agreed upon if a total loss occurs. Of course a person pays more for this type of coverage.

[MikeStarr]

Originally Posted by Mudfrog

"Lower cost insurance" sounds like what most of us buy for our vehicles. It pays ACV (actual cash value), what the insurance company says the vehicle is worth at the time of the loss. I don't know what they use to figure this amount but it's usually less than what we think our vehicle is worth.

Some people buy a policy with an agreed value. The insurance company and the policy holder agree on an amount when the policy is bought. It pays the total amount that was agreed upon if a total loss occurs. Of course a person pays more for this type of coverage.

Correct, however Geico doesnt have "agreed upon value" coverage. They have this strange hybrid coverage that Im describing which is similar to agreed upon value. It actually sounds better to me.



Either way, what Im asking is is it worth it to pay for the extra coverage? How much are people normally paying extra for agreed upon value coverage?

[DKB218NYC]

If your coach was totaled, would it be worth the peace of mind knowing it will be replaced? 50 bucks a month?

[Mudfrog]

Originally Posted by MikeStarr

Correct, however Geico doesnt have "agreed upon value" coverage. They have this strange hybrid coverage that Im describing which is similar to agreed upon value. It actually sounds better to me.



Either way, what Im asking is is it worth it to pay for the extra coverage? How much are people normally paying extra for agreed upon value coverage?

There are a few variables so I think only you can answer that question.

I know people that pay extra to have lower deductibles and better coverage in order to have the peace of mind. Then there are people like me that hate paying higher premiums so go with high deductibles and do without things like pip, un/underinsured, roadside, towing, travel, etc,,. This works for me because I've managed to put a few bucks away that'll cover things my policy might not pay. (note that I do not skimp on liability coverage)

And I don't want this to sway you but, we had a tornado come through that totaled our 2nd motorhome about 19 years ago. Had Geico with ACV coverage at the time. To our surprise, they paid way above what I would have ever imagined. Was very happy with their claim service...

[TXTiger]

I have Geico and have agreed value coverage. Im registered in So Dakota so they may not offer that in FL, don't know. I bought mine used and insured for the price of what I paid. My premium for both my RV and Class A is $1,250 every 6 months with a $1,000 deductible. I've had it for almost 3 years now and am thinking of changing to a lower agreed amount or ACV because I'm sure my rig is not worth what I paid due to depreciation.

[MikeStarr]

My quote was with a $500 deductible and I probably will raise the deductible to lower the premiums.


As I said before I did have a totaled car that was insured with Geico and they paid me $7700 for a car I would say was worth about $6500 so I do think they are more than fair.


I'm leaning towards thinking the extra coverage isn't worth it for $50/month.

[Bahamaniac]

I always put the extra money towards liability and uninsured/underinsured coverage. There are way too many people driving with no or minimal insurance. Of course I have been hit 6, yes 6 times by people running red lights and stop signs! I've had over 20 surgeries since 2004 due to driver negligence!

[Milford 47]

I have Farm Bureau and state the insured value each year

The value I choose is the number the Coach is worth to me including contents

Seems to be the best fit for my situation

[Smitty77]

We also do the stated or agreed to value. Of course we all feel our coaches are worth more then book value!

But as I explained to my DW, it's not so much about what our coach is worth - it's more about if a catastrophic lost hits - how much I would want to look for a replacement coach.

I'm willing to pay the extra costs for that coverage... but also understand those who are looking for rock bottom insurance price.

And if you have Umbrella Insurance Coverage, be sure you follow the rules that coverage for minimum coverage levels on all of your various policies...

Best of luck to you,
Smitty