Van/truck vs RV Insurance

[BelgianPup]

People here have posted that it is difficult -- if not impossible -- to change insurance coverage when you convert a cargo van or a box truck to an RV. I do understand that to be considered a true RV, insurance companies require that your conversion have a regular toilet and holding tank, etc.

What I don't understand is WHY you would want to have a work vehicle with a fairly simple, homemade interior insured as an RV.

Yes, if it was seriously damaged, you would lose the cost of the interior. If you found an ins. co. that would insure it, would you really come out ahead after making the payments? And if you were a decent driver and never had a major claim, how would that compare?

And if you tried to keep the ins. cost down by neglecting to tell the ins. co. that you were living in it full-time (= increased chance of damage), and they discovered the truth, they would probably refuse to pay.

Has anyone ever really done a hardcore comparison?

 

[KarlH]

And if you tried to keep the ins. cost down by neglecting to tell the ins. co. that you were living in it full-time (= increased chance of damage), and they discovered the truth, they would probably refuse to pay.

That's a good point. But take a close look at your auto policy, since it may have a clause requiring you to notify them if the vehicle is modified. I'm not sure which is more likely to cause trouble.

 

[Gr8ful]

I had no problem titling or insuring the ambo as a motor home. The orig title said cutaway but I told them it was an ambo.

 

[rruff]

If you found an ins. co. that would insure it, would you really come out ahead after making the payments?

You never come out ahead on insurance unless you are a bigger risk than they think you are. I don't need insurance on my vehicle because I don't own anything that I can't afford to replace.

I had no problem titling or insuring the ambo as a motor home. The orig title said cutaway but I told them it was an ambo.

Surely this varies by state?

 

[Gr8ful]

I just buy the basic + comp as I have an umbrella policy & pay $75/month. Insurance is required in Michigan & higher than many states.

 

[VanFan]

I carry liability only. Collision would not pay much, given the age of the van. It was hit while parked once, and repairs ran around $450. If I had $25,000 into a build, I might explore other options.

 

[Spaceman Spiff]

I only buy insurance for things I cannot afford to loose. I do not have my pickup camper insured as I can cover its loss. I also carry an umbrella policy because with today's prices one could easily do $500,000 in damage to others.

Everyone will differ on what they can cover out of emergency funds. It is both an 'available funds' and 'peace of mind' issue.

 

[wayne49]

I don't carry comp & collision. I have both a cargo van and a class C. Liability for my Class C is less than half for my van. $243 versus $535.

Why? Typically, outside of nomads, RV's are typically driven only on annual vacations and long weekends.

Non RVs are considered to be every day vehicles and more at risk.

Comp & Collision is based on replacement value and repair costs. They can look it up in a book/computer for a manufactured vehicle. Not so for your baby. Insurance is all about numbers and risk pools. Something that doesn't fit the models is a problem for an insurer.

Why is it so hard to change from van/truck to RV? An individual is not a RV manufacturer. RVs are built to an industry code [such as it is].

You can build a house and get it inspected that it is up to code.

Another parallel would be home built airplanes that have a separate process to be certified for flight.

To my knowledge no such mechanism for certifying a home built RV exists. Closest would be BLM rangers checking for waste tanks at the LTVA's.

 

[1zacster]

Roamly has worked great for me, they are one of the few insurance agencies that will insure a self built camper and they give a good rate.
Why insure it as an RV? well insurance is insurance, it doesn't care what kind of car, policies is what prevents you doing this normally. Geico will drop your policy and ban the vehicle from being insured if they hear you did this, and if you make a claim, they might try to invalidate your coverage. Roamly does allow this, so there isn't a problem.
What you're talking about is TITLING it as an RV. The TITLE is what normally calls a van a "commercial vehicle" or "RV". States like California the commercial vehicle will be $400 A YEAR and a RV will be half that or less. States like Arizona don't care and you're paying about $150 every 5 years no matter what.