If you own a recreational vehicle, insurance is one of the most important things to consider. While many people focus on getting basic insurance with liability and collision coverage, there’s another type of coverage that’s just as important: Guaranteed Asset Protection (GAP) insurance. In this guide, we’ll take a look at what RV GAP insurance is, why you need it, and how to get it.
What is RV GAP Insurance?
This is a type of RV insurance that covers the gap between what you owe on your camper and what it’s worth if you were to have an accident or if it was stolen. It’s also known as “depreciation coverage” because it covers the depreciation of your recreational vehicle. This coverage is essential because RVs can depreciate quickly during the initial few years of ownership, especially if they’re used extensively.
Why is Motorhome GAP Insurance Important?
Owning a motorhome can be a dream come true for many, but it’s also a significant investment. Most vehicles depreciate up to 50% in the first three years. While motorhomes do lose value over time, it is not usually as dramatic as other RVs. However, even a modest depreciation of 20% over three years can mean losing a huge amount of money, especially given the higher purchase price of a motorhome.
Imagine your motorhome is stolen or written off and declared a total loss due to flood damage, fire damage, or even an accident. Your insurance company will pay you what the camper is worth at the time of the accident. But what if you have a long-term finance agreement and still owe more on the motorhome than its current value? That’s where motorhome GAP insurance comes in. It will cover the difference between the camper’s value and what you owe on it, so you won’t be left with a big bill to pay out of pocket.
How Much Does it Cost?
The cost of RV GAP insurance varies depending on the policy options you select, including the length of coverage, the camper’s value, the term of the policy, and the insurer. Typically, motorhome owners can expect to pay around 5-10% of the vehicle’s purchase price for GAP insurance. The cost may seem high, but it’s worth it if you want peace of mind knowing that you are entirely covered in the event of a total loss.
How Can You Get This RV Insurance?
You can usually get RV GAP coverage from your insurance provider when you purchase your camper. It’s a useful inexpensive add-on that can save you a ton of money if you ever have to file a claim. Be sure to shop around and compare prices from different insurance companies to ensure you’re getting the best rate.
What to Look For?
When shopping for motorhome GAP insurance, there are a few things to keep in mind. Make sure that the coverage amount is higher than the amount you owe on your camper. You’ll also want to look for a policy that has a low deductible. Remember to read the fine print to ensure that you’re covered in a variety of situations, not just accidents.
With the right GAP insurance policy for your RV, you can relax knowing that you’re protected from unexpected expenses. If you’ve any questions or need assistance with RV insurance, give us a call or visit Larry’s RV Center in Jackson, MI. Our friendly and knowledgeable staff will be happy to answer your questions and help you get what you need. We proudly serve all those in Lansing, Mason, and Holt.