Given the current environment around COVID-19, many Canadians are thinking about cutting back their spending on non-essential or discretionary expenses. After all, this pandemic has already severely impacted many industries and the global economy, and is expected to lead to further financial challenges in the weeks to come.
Back in March, we had briefly discussed how the COVID-19 crisis was affecting the global travel industry – particularly snowbirds with expiring travel medical insurance coverage. Today, we want to focus on RV insurance.
How COVID-19 Is Affecting RV Insurance
With millions of people now working from home and in self-quarantine under the directives of Prime Minister Justin Trudeau and public health authorities, the average number of kilometres driven by Canadians is down significantly. So much so, that we’ve already seen gas prices tank in the face of falling demand and travel restrictions.
So, what does that mean for RV insurance?
With the combination of not being able to travel as much, the seeming delay in national and provincial parks opening, and most private campgrounds still being closed, you may be questioning the value of your RV insurance and thinking about reducing or suspending coverage.
Please note that there are some important factors to consider before you do this:
- You may find it surprising to learn that the majority of the claims paid out under RV policies are for events that occur when the units are not on the road. These claims include weather-related events, theft and vandalism. You may experience extensive roof damage because of a falling tree, or a rip in the awning as it collected too much rainwater – this is where an RV insurance policy comes in to save the day.
- Is your RV paid for? If you have a loan on your unit, you are more than likely required to carry RV insurance until you’re able to pay off your loan in its’ entirety. Financial lien-holders and lenders tend to require full insurance coverage to ensure their financial investment is protected.
- Is your RV currently in a park or campground? Most RV parks, campgrounds and resorts have certain rules and regulations that RVers must abide by. Requiring you to carry RV insurance, being one of them.
It is also worth mentioning that RV insurance premiums are determined based on factors such as the seasonal use of RVs, the value that your RV is insured for, and also any discounts that you may qualify for (e.g. Claims Free). If you are considering limiting your RV insurance coverage, you will be running the risk of losing out on them when we do go back to normal.
With that being said, if you are facing financial hardship because of COVID-19, we urge you to please reach out to us. We understand that each household is experiencing their own unique challenges, and if you would like to discuss your policy, payment options that are available or other questions you may have on your mind, please call us at 1-844-929-4768.
Stay home and stay safe, until we can all get back to what we love the most, Rving!