Buying insurance for your van can be confusing and frustrating. There are so many variables to consider when buying a policy, such as the type of vehicle you have, how often it is driven, where it is driven etc. This article will go over 10 common mistakes that people make when buying insurance for their vans.
1. Type of Vehicle
When buying insurance for your van, make sure you understand what type of vehicle it is. There are many different types of vehicles covered by RV policies. Generally speaking there are two categories: motorhomes and towables. These are then broken down into subcategories that define the level or amount of living space provided in the vehicle. For example, there are Class A, Class B and Class C RVs.
2. Keeping a Van Past the Manufacturer’s Age Limit
Manufacturers set an age limit on their vehicles. If you purchase a new van, it will likely come with a manufacturer’s warranty that will cover the vehicle for a certain number of years or miles. Some manufacturers will even replace your vehicle if it is totaled within those first few years as long as your insurance company agrees to the replacement. At some point after this, usually between years 5 and 10, your van will no longer be covered by the manufacturer’s warranty.
3. Vans That Are Driven Often Carry a Higher Risk
If you have a van that is driven regularly, it will cost more to insure than a van that is not driven regularly. This is because the more your van is driven, the higher the chance that it will be in an accident.
4. Your Area of Residence May Affect Your Rates
If you live in an area with a high rate of vehicle theft or vandalism you should expect to pay more for insurance than someone who lives in an area with a low rate of vehicle theft or vandalism.
5. Your Driving Record May Affect Your Rates
A good driving record could reduce your insurance rates, whereas a bad driving record will likely increase them. This is especially true if you have been in any preventable accidents, received traffic tickets or been involved in a DUI within the past five years.
6. Make Sure You Know What is Excluded
Many insurance companies exclude certain types of vans or RVs from their policies. For example, some may not offer coverage for certain types of high end motorhomes like Prevosts and Dolphins. Be sure to check the policy you are looking at to make sure it doesn’t exclude your type of van.
7. Insurance Coverage for Vehicles You Share With Another Person
If you share ownership of your van with someone else, make sure to check the policy to see if there is any type of shared vehicle clause. Most policies cover vans that are driven by their owner, no one else. This means that if you let your family or friends drive your van, you are exposing yourself to liability.
8. Many People Forget about Replacement Cost Coverage when they Buy Insurance
Many times the most expensive item in your van is also the one that has depreciated the most – your roof. If someone were to accidentally drive into your roof and damage it, then replacement cost coverage will replace it with a new roof. If you do not have replacement cost coverage, your insurance company will only pay what it would cost to replace your roof with a used one.
9. Not Buying a Multi-Policy Discount
Many times when people buy insurance for their van they forget to purchase a multi-policy discount from their car insurance carrier. For example, most USAA members can save 5% on their RV by purchasing a multi-policy discount.
10. Not Checking the Deductible
The deductible is an amount of money that your insurance company requires you to pay before they will start paying for claims. For example, if your deductible is $250 and someone hits your van and causes $1,000 of damage, you will be responsible for the first $250 of the repair.
Why does a young van cost more to insure?
Young vans are driven more often and this increases the chance that they will be in an accident.
How does liability coverage differ from collision and comprehensive?
Liability coverage compensates others for damage to their property as well as medical expenses. Collision and Comprehensive cover the van itself by reimbursing costs associated with collisions as well as theft or damage from natural disasters.
What is a multi-policy discount?
A multi-policy discount is an offer from your auto insurance company to reduce your rates if you buy both home and auto insurance with them. It’s usually offered as a way for customers to save money as well as simplify their lives by having fewer companies to deal with.
What makes RVs more expensive to insure than cars?
RVs are bigger and heavier than cars, so they cause more damage in collisions. They also often have high value parts that insurance companies must replace which raises the cost of repairs.
How does your driving record affect your rates?
Your driving record reflects the likelihood that you will be involved in an accident. If you have a clean driving record, then it’s unlikely that you will get into an accident and this means that your insurance company won’t charge as much to insure you. On the other hand, if you have been in an accident where you were at fault, your rates will go up accordingly.
If your van is in an accident and it’s not totaled, but it needs repairs, what happens then?
Under most insurance policies, repairs will be covered up to the amount that you could get for selling the van in its current condition. So if your van is worth $10,000 with 50,000 miles, and it needs a new engine for $5,000 but you only owe $3,000 on the loan, your insurance company will pay for a new engine. They would not pay more in this type of case because they cannot sell your van for more than what you still owe.
Why would your deductible affect your rates?
A higher deductible lowers your rates because you have agreed to pay for a larger share of the costs before the insurance company starts helping you.
In The Final Analysis
We hope this post has been helpful. If you need any help with your insurance needs, please don’t hesitate to reach out! Comment below and share what was most useful for you in this blog post or if there is anything we can do better next time. As always, thanks so much for reading!