If you fail to add the appropriate coverage to your RV policy, you might be missing out on a high degree of coverage that could provide a lot of benefits if you have a wreck.

Physical damage insurance for RVs usually comes in two forms, one of which is collision insurance. Though not mandatory, it is a benefit that you should add to your RV policy in all circumstances.

What is collision insurance?

Collision insurance is exactly what it sounds like. It will pay an insured RV owner for the damage their vehicle sustains following collisions with other objects. The policy might pay for your vehicle’s damage both following collisions with other vehicles and with other stationary objects.

If an accident is not your fault, then you might be able to receive compensation for your RV’s damage from the auto liability insurance of the at-fault party (I.e. the other driver). However, someone else’s coverage only pays when a wreck is their fault. Your own collision insurance will pay regardless of who was at fault for the accident.

Is it mandatory?

On one hand, collision insurance is not mandatory. While most states require all RV operators to carry certain amounts of liability insurance, they generally don’t mandate that you carry collision coverage.

However, vehicle lenders are usually allowed to require buyers to buy collision insurance if they finance their vehicles. Therefore, if you have a loan on your RV hat you are paying back, then you will likely have to have physical damage coverage for the duration of that loan. You can also keep this coverage after you have paid off the loan, too.

How much will it pay me?

When you make a collision insurance claim, a couple of conditions will apply.

• Policies will contain deductibles. A deductible is a portion of repair costs that you agree to pay on your own. For example, if you have a $1,000 collision deductible, then you pay the first $1,000 of your repair costs and your insurer pays the rest. Claims below your deductible value will not have coverage.

• If a wreck totals the RV, then your insurer will settle with you. This settlement will usually equal the cash value of the vehicle at the time of the loss, as opposed to the value of a new vehicle. Your deductible will also apply to this settlement.

In many cases, you can buy expanded collision coverage, such as replacement cost value coverage or coverage for personal possessions in the vehicle. Your agent is happy to work with you to determine the best way to increase your coverage in an affordable way.