Whether you are newly retired or just ready to be on the road, the decision to buy an RV may mean you want to switch car insurance companies. While it is not a terribly difficult process, there are a few things to keep in mind as you proceed to ensure the switch is as smooth as possible.
As with many major life decisions, purchasing an RV brings with it lots of excitement. Making wise financial and insurance decisions will ensure that your new RV does not become a strain on you in the long-term.
How to switch car insurance companies when you buy an RV
Step 1: Evaluate your insurance needs. You will first need to determine what exactly you want out of a new insurance policy and if you will be able to afford it.
Because RVs are a unique combination of a home and a vehicle, insurance can get a tad tricky. In the first place, since you are driving your RV, it will need liability coverage just like every other car on the road, which covers damage you cause to other vehicles.
Depending on how you plan to use the RV, liability coverage may be all you need. If, however, you plan to live in your RV a chunk of the time, then you will want more coverage. Extra coverage would extend to comprehensive coverage, roadside assistance, and full medical coverage.
You may also want to consider getting insurance to cover the items within the RV, such as appliances and furniture, in the event of theft or damage from an accident. Furthermore, you may want vacation rental insurance for when your RV is parked in a campground and being used as a temporary home.
Your insurance needs will vary according to how you plan to use your RV. Getting a realistic sense of your needs will make sure you are only paying for necessary services.
Finally, don’t forget about your other cars, which can provide you with a multi-car discount, and consider bundling other insurance policies for significant savings.
Step 2: Compare quotes. Get quotes from various insurance companies so you can see how much the coverage you need will cost.
Reach out to as many companies as you can. This allows you to know the full range of prices for insuring your RV.
Step 3: Negotiate a better rate. While you might be a little nervous about giving ultimatums to a customer service rep, attempting to negotiate a better rate is always worth the effort.
If you have received a quote from a company that is a little pricey, call and ask why it is so high. At this point, if you have received a better rate from another insurance company, use this to your advantage.
Tell the rep about the other offer and try to get them to match it. While this might seem daunting to you, even a small amount of savings each month will add up over the term of your policy. Make the insurance company earn your business by giving you the best value for your money.
Step 4: Purchase the plan. Once you have negotiated the price of the policy to a fair level, move forward by purchasing the plan.
The insurance company will collect all the relevant data surrounding you and your RV.
Step 5: End your old plan. You need to either cancel or let your old plan expire.
Depending on the amount of time left on the old policy, it may be better just to let it expire rather than shelling out a hefty cancellation fee. Look into the details of your old policy concerning cancellation and decide what is the least costly for you.
Be sure not to cancel the old plan before your new one is in place. Such a lapse in coverage could mean higher car insurance rates going forward.