Imagine that one of your customers walks into your agency looking for insurance for his new travel trailer. You pull a quick quote for an endorsement on his existing car insurance policy. Pleased with the low price, your customer buys and goes on his way.

Months later, you find out that your customer’s RV was totaled. And that’s not the only bad news: because the RV was simply added as an endorsement onto his auto policy – and wasn’t covered by a specialized RV policy – the insurance check won’t even cover the amount he still owes on his loan.

While it can be quick, easy and sometimes cost-effective to add an RV to an existing auto policy, several incidents aren’t fully covered unless your customer has specialized RV insurance.

Here’s what you need to know about RV insurance so that you can grow your RV business and protect yourself in the process:

1) What’s covered and what’s not A car policy doesn’t cover a lot of things that can go wrong with an RV. After all, these vehicles are much more than a car— they’re houses on wheels. Your customers might need specialized RV insurance that covers more than what a standard car insurance policy covers.

For example, if an RV is damaged during a trip, an auto policy could leave your customers out in the cold. But specialized RV coverages, like Progressive’s Emergency Expense coverage, would pay up to $2,000 for lodging and transportation so they could still enjoy their vacation.
Similarly, expensive items like outdoor gear, laptops or other electronics stolen from inside an RV would be covered by an RV policy but typically would not be covered by an auto policy.
Specialized RV coverage can also protect against depreciation if an RV is totaled. A typical car insurance policy would only pay the RV’s depreciated value, but an RV Agreed Value policy from Progressive would pay the amount that your customer and the insurance company agreed the RV was worth when they bought the policy, regardless of the RV’s value at the time of the loss.

Knowing what’s covered and what’s not can help you recommend the type of policy that best fits your customer’s needs.

2) Coverages, costs, and service A specialized RV policy doesn’t have to break the bank. The difference in price between a specialized RV policy and an auto endorsement can be minimal, but the difference in coverage is significant. For example, if an RV breaks down, towing it to a repair facility requires specialized – and more expensive – equipment, so an auto policy might not cover the full cost. With dedicated RV coverage like Progressive offers, Roadside Assistance claims like these are fully covered. Additional coverage options are available. For example, in New York, Progressive offers:

• Total Loss Replacement – replaces a totaled RV with a new model of similar make and quality;

• Full Timer’s Coverage – provides homeowner-like coverage for individuals who use their RV as a primary residence;

• Vacation Liability – pays up to the specified limits for Bodily Injury and Property Damage for which a customer is legally responsible as a result of an accident that occurs while the RV is used as a temporary vacation residence. $10,000 limits are included with Comprehensive and Collision coverage, but higher limits are available;

• Fire Department Service Charge - pays up to $1,000 in fire department charges when the department is called to save or protect an insured RV. Higher limits are available;

• Pet Injury Coverage – if a pet sustains injury in an RV loss that is covered by Comprehensive and Collision insurance, Progressive will pay up to $1,000.

And in the unfortunate event that your customer needs to use these coverages, a specialty RV insurer has a claims staff that knows RVs inside and out – unlike an autoonly carrier whose reps work mostly with cars. Progressive’s claims reps are available 24/7 and are specially trained to get RVs – and your customers – back on the road fast.

3) Market and cross-sell opportunities According to the Recreation Vehicle Industry Association, more than 8.2 million American households own an RV. Reach out to these potential customers by networking at local RV events and with dealers. And don’t forget to ask your current customers if they own an RV. It’s the easiest and most cost-effective way to grow your business, and your customers will stay with your agency longer the more policies they have with you. A study by the Professional Insurance Agents of America showed that 97 percent of customers with four or more policies stayed with an agency after three years, while only 45 percent of customers with one policy stayed.

Plus, RVers tend to own other types of vehicles like motorcycles, boats, dirt bikes and ATVs, so don’t forget to ask about other “toys” they might have.

4) Quoting—it’s fast and easy Quoting a specialized RV policy is easy. One example: Progressive has extensive make and model pick lists and “help text” available on www.ForAgentsOnly.com to answer any questions you might have.

5) Protect your customers, and yourself It’s best to present both options—a specialized RV policy and a personal auto endorsement—to your customers so they can make an informed decision. And you’ll protect yourself in the process. Since most auto policies don’t offer the same level of coverage for motor homes and travel trailers that a specialized policy does, if your RV customer suffers a loss that’s not covered, he or she may take legal action against you and your agency. The #1 cause of E&O claims is failure to offer the proper coverage.
By educating both yourself and your customers about RV insurance, you’ll be able to protect your business and sell more policies – and your customers will be protected from the unexpected.