Interesting Insurance issue I just discovered-Progressive
I have Progressive insurance on my motorhome and I've been with them since 2001 on my first motorhome. My current motorhome (2004 model) is almost 10 years old now. My insurance rates have gone up quite a bit in the last 5 years. When I first bought my motorhome I got what was called "Total Loss Replacement/Purchase Price" coverage. What that meant is that within the first five years of the life of my motorhome if I had a total loss they would replace the motorhome with an equal brand new current model year motorhome. So mine was a 2004 model, if I had totaled it in 2009 I would have got a brand new 2009 motorhome.
What I didn't understand is what happens after the five years so I just spent some time on the phone with Progressive and found out. After five years the "purchase price" part of the coverage kicks in. That number is set at my original purchase price. What that means is if my motorhome is totaled today, they are going to write me a check for the original total purchase price of my motorhome and hand it over to me. I know, I didn't believe it either, so I had to talk to two different people who confirmed that's how it works. And I read the policy documents that confirm this. So my motorhome is currently insured for probably almost three times what it is actually worth.
Now that may sound like a great deal, but I found out that coverage is what was driving the price up of the insurance. Now the only problem is even though I'm insured for three times what it's worth my only option is to drop the coverage to actual cash value. The problem there is the ACV is quite a bit less than what I still owe on the motorhome. So I could cut my insurance policy rate in half by going with ACV, I don't want to be stuck with the risk of owing a bunch of money if it's a total loss. So Progressive is going to check and see if they can lower that original purchase price coverage down to what I actually owe on the motorhome as of this year. If they can do that, my policy rate goes from $1200 a year to a little over $800 for the year.
If you have progressive insurance you should check and see if you're paying to insure your motorhome for way more than it's worth.
What I didn't understand is what happens after the five years so I just spent some time on the phone with Progressive and found out. After five years the "purchase price" part of the coverage kicks in. That number is set at my original purchase price. What that means is if my motorhome is totaled today, they are going to write me a check for the original total purchase price of my motorhome and hand it over to me. I know, I didn't believe it either, so I had to talk to two different people who confirmed that's how it works. And I read the policy documents that confirm this. So my motorhome is currently insured for probably almost three times what it is actually worth.
Now that may sound like a great deal, but I found out that coverage is what was driving the price up of the insurance. Now the only problem is even though I'm insured for three times what it's worth my only option is to drop the coverage to actual cash value. The problem there is the ACV is quite a bit less than what I still owe on the motorhome. So I could cut my insurance policy rate in half by going with ACV, I don't want to be stuck with the risk of owing a bunch of money if it's a total loss. So Progressive is going to check and see if they can lower that original purchase price coverage down to what I actually owe on the motorhome as of this year. If they can do that, my policy rate goes from $1200 a year to a little over $800 for the year.
If you have progressive insurance you should check and see if you're paying to insure your motorhome for way more than it's worth.
