Seeking RV Insurance for 4WD New SMB

[Christopher Thwaites]

I am an agent and Progressive is one of my companies. They will write an SMB. I'm not sure why you are getting the runaround but you will have much better luck by calling a Progressive agent in your area. He/She gets a commission. The online agents do not.

[daveb]

Originally Posted by joey2cool

Don't know about other states, but Washington State DMV requires correct classification of your vehicle when you register it. The only other advantage, besides getting out of a possible arguement with the State Patrol, might be that you can keep open bottles of liquer inside the van (behind the cab area) without getting a citation. Also, guys with more than 10,000 pounds may get a break on thier WA State tabs if they're an RV and don't have to pay by the pound.

As far as a bathroom goes, porta potti is sufficient, but it better be in there when they check.

And yet I was told there must be a mounted blackwater tank to qualify...SMB says no, provided there are enough other items to make the grade.

One insurance company told me that this is to keep people in "white trash" vans from throwing in a porta potty, bed and coleman stove and call their van a RV.

I need to shop around because mine is due. I did find out that if you add a second vehicle the price drops sharply. I hate this but I'm getting raped at 2K a year by GMAC

[windguy]

a porta potty, bed and coleman stove sounds like an RV to me.
wait, that doesn't mean what I think it means, does it?
I can see how hanging around a dump station emptying your holding tank can raise your social status

Dave, what is the price difference between being classified as an RV vs a passenger van?
I'd like to know what the advantages are. Thanks!

[daveb]

Originally Posted by windguy

a porta potty, bed and coleman stove sounds like an RV to me.
wait, that doesn't mean what I think it means, does it?
I can see how hanging around a dump station emptying your holding tank can raise your social status

Dave, what is the price difference between being classified as an RV vs a passenger van?
I'd like to know what the advantages are. Thanks!

No expert here so I can't be sure but the way I understood it is if you insured as a van and it gets totaled you get the value rated price of an empty van, not a converted van. Also an RV policy is supposed to be lower because it's not considered a daily driver, that's why the price dropped so much if I show I have at least 2 vehicles on the policy. The other vehicle is considered the primary vehicle...at least that's what I was told. But I get so much variation BS thrown at me I don't know who to believe. Gonna go see my agent I've had since the 70's today and maybe they will set me straight. When I bought the van they (State Farm) said they could not compete with companies like Progressive, but Progressive said they would not cover me. I might have got a newbe agent...I just don't know. I'm really leery about those who say "sure we can do that" when others in the same company say they can't. I just figure somebody like Good Sam's GMAC RV coverage would be more willing to pay off in the event of a totaled "RV" as compared to others like State Farm. I plan to try Progressive again.

[daveb]

OK just got off the phone with my State Farm agent GMAC as well as Progressive and here is what they told me. Mind you I've done this before and got different results. What sticks in my craw is replacement value (agreed value) and the restroom issue. If you find insurance for your van at less than 600 a year I applaud you. I only checked out 3 companies. I’m so burned out now I’m going to just grab the next 6 months with GMAC albeit at a lower price than what I’ve been paying. Most of the posts on this thread probably hold more weight they what I've found today.

<><>State Farm says (in the case of a total) they will not give me the sticker price of my class B RV W/O depreciating it. Neither will Progressive and in fact Progressive told me as of April 2010, they no longer will honor agreed value so if you have this you might want to call. It might be a Ca thing only. Again I'm only told that by them so don't freak out, rather ask for an RV specialist to confirm. I was told you are not grandfathered in either...just check and please report back your findings.

<><>GMAC/Good Sam says they will honor what I paid for it, so for instance, if I plopped down 100K on delivrey day and I total 6 yrs later, I get a check for 100K. It only applies to new vehicles and those who have been consistently insured through them.

<><>State Farm says they will take into consideration what equipment in/on the van but not at the purchased price. They said they are willing to try to get me into something similar. Same with Progressive. GMAC will cover items added but in a total out I just may be SOL. In other words when I get my new Deaver springs, if I get hit and the van is not totaled, I'll get repaired plus I'll get my Deavers back provided I have the receipt and pictures of them on the vehicle. My guess is most any good insurance companies will do that. But as far as GMAC is concerned I'm not sure where they will draw the line when planning to total out a vehicle. I don't like this because if they say my 110K (purchase price) totals at 50K, I'll get the 110K check from them but loose out on the extra 10K of goodies I added. Start stripping anything of high dollar off that baby

<><> Porta potty issue. Progressive said in Ca I MUST have a plumed in toilet or I do not qualify as a class B RV. GMAC says I only have to have a certain amount of items. So I listed what I have and I qualified.
>>Sleeping quarters.
>>Refrigerator.
>>Sink.
>>Running hot/cold water and tank.
>>Shore power AC electrical system.
>>On board inverter and electrical system.
>>Stove or microwave.
>>Separate heat other than engine.
>>Separate A/C cooling.
>>Refrigerator.
>>Shower wand.
>>Grey water tank.

I specifically asked about a plumed in head/black water tank. GMAC (didn't ask SF) said no I didn't even need the porta potty, and I had more than enough items to qualify. They seemed to key on the Shower wand, Sink, water tank, stove, shore power electrical, microwave, refrigerator and of course sleeping quarters. I don't know what they actually needed.

Progressive was by far the cheapest but I don't make it as a class B. GMAC was much cheaper if I add a second vehicle so I'm shoving my pickup over to that policy and because of the agreed value clause I have to stick with them. Personally I can't see Progressive being able to renege on this if you signed into a contract without dropping the price of the premium. Sounds like BS to me. Can they do that?

YMMV

[Christopher Thwaites]

Daveb,
As an agent I applaude you for your research. Everything you have reported is clear and correct but specific to policies issued in CA. It is my understanding to be a CLASS A,B,C "Motorhome" for insurance purposes, you must be self contained. Usually this means 3 items must be factory installed, a sink,toilet/shower and stove. This keeps insurers from having to write homebuilt units or units that they do not want in their Motorhome Insurance Programs. Every insurer wants to be able to quantify it's risk. They try to eliminate as much guess work as possible so their underwriters don't have to be too smart and get paid too much. If an insurer can figure out how to automate underwriting they will. It's getting closer to that day. Motorhomes are problematical because there can be so much variation in value at purchase, depreciation rate, and use. SMB's make it even harder because they are so hybridized. In my case, my van is just a van with an SMB top and Quadvan 4wd. My insurer made an exception for me but they did not want any vehicle with more than $4,000 of "aftermarket" equipment. I sent pictures and invoices and heavily documented my own file. Will I get a fair settlement after a loss????? No matter what, I will only receive an actual cash value (depreciated) settlement. I'm ok with that.
As for Progressive's elimination of "Agreed Value", they can change the contract any way they like but only at renewal. A policy holder will be notified, in advance of renewal,when a "material change" in his policy is being made. The policy holder then can cancel the policy or change the policy.
Sadly, my profession is heavily populated by poorly trained agents and customer service folks. Finding a good agent is difficult.
Thanks for your educational research.

[macmcintire]

This as been a very fascinating discussion. Now I'm wondering if there is anyone out there who has totaled their SM and what insurance payout they received. And, if no one has totaled their van, is there anyone who wrecked theirs and what kind of response did you get from your insurance company.

I'm becoming increasingly concerned that I am not covered by my insurance for the value (full or even depreciated) of my van. To only learn this after totaling my van is as concerning to me as thinking my wife may not receive the full value of my life insurance policy after I die because I was unaware of some obscure clause in my policy. To be able to go over the policy with a fine-tooth comb to look for loop-holes is one thing; but to have to rely on some agent or underwriter's interpretation of that policy is another thing. I guess there is no real assurance in insurance!

[daveb]

Chris, I was hoping you insurance guys would jump in here. So, I take it any company can also make exceptions such as what GMAC said for me not needing a plumed head on my rig in Ca? I've asked this several times and GMAC has been the only company with a consistant reply.

Sorry but the people who write law in California suck.

[daveb]

Originally Posted by macmcintire

This as been a very fascinating discussion. Now I'm wondering if there is anyone out there who has totaled their SM and what insurance payout they received. And, if no one has totaled their van, is there anyone who wrecked theirs and what kind of response did you get from your insurance company.

Mac a gal on the owners group did (can't recall if she was here as well) and had to fight to get much better than a very depreciated RV. If I remember correctly they wanted to compare her rig to a stock cargo van at first. Sheesh.

[macmcintire]

Seems like the lesson here is document, document, document!!! Keep all of your receipts. Take plenty of pictures. Get affidavits from witnesses, mechanics, anyone who has ever seen your van. Build your case file now before an accident and then get the best attorney to represent you after the accident.