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Klueck's avatar
Klueck
Explorer
Jun 18, 2015

Rating Basis on Motorhome insurance Coverage

We've had our motorhome insured with National Interstate for 4 years now.

When we first got it, we were able to insure the agreed value of the motorhome, meaning in the event of a total loss, we would be paid the agreed stated value.

After a few years our coach reached the maximum age they will insure for agreed value (8 years I think) and they started to insure it for ACV (actual cash value, minus depreciation)

The extra premium for the agreed value came off, so I thought we were good.

Last year we got a rate increase. I called and they said it was a normal rate increase. I let it go.

This year we got another rate increase so I called around for quotes. Unfortunately, I was unable to find anything cheaper, but the agent at Gilbert RV Insurance in Florida told me the "rating basis" on our policy may need to be lowered as they were basing our premiums on that figure which was NOT the amount we would get should we have a total loss.

I am waiting a call back from our agent, so I don't know if it will reduce our premiums, but the agent at Gilbert Insurance told me we should review this amount every year or two to make sure it wasn't higher than the actual cash value of the rv.

Just wanted to share. It's listed right on the dec page and it says "rating basis" and there is a dollar figure next to it.
Class A

6 Replies

  • Executive45's avatar
    Executive45
    Explorer III
    Jun 18, 2015
    I agree with jrp. The opening statement in a post like this should identify that you are seeking info on FULL TIMERS INSURANCE. That makes a huge difference in what type of coverage you have. It's a much different animal as coverages tend to be higher and there are additional add ons that traditional insurance policies do not. There's also a limited number of companies that provide full time insurance policies. Finally, most companies that insure full timers also require your toad to be included.

    I'm insured with National as well and found them to be an excellent company with reasonable pricing. Actually the lowest pricing. We've been with them for six years now and have had several claims which they've paid without so much as a hiccup. They switched from Agreed to Actual last year. To do so, I took several pictures of my coach and combined that with some research including similar sales, listings and KBB and we agreed on what was a reasonable replacement cost for my coach. It didn't change the cost of my policy, only the value of my coach should I suffer a total loss.

    While you will see that as a line item on your policy, the rating basis cost will have a very small affect on the overall cost of your policy. It should, however, be accurate....Dennis
  • jrp's avatar
    jrp
    Explorer
    Jun 18, 2015
    I agree with your agent, once a current cash value basis has been established, the insur company does not adjust it unless you request an adjustment. So yes you're paying for a slightly higher rating basis than the actual totaled settlement would be after a few additional yrs depreciation. But you'll be disappointed in how small the premium reduction is for lowering that rating basis.
    Many of the annual increases are across the board for an entire state or an area of that state, based on that insurance companies prior year results. It has nothing to do with your record or your policy specifics.
  • msturtz's avatar
    msturtz
    Explorer
    Jun 18, 2015
    This is a common problem even in other lines of insurance such as non-owner occupied flood insurance. You get charged for what is in the declaration page regardless of what they would actually pay in a claim. If you are at ACV (Actual Cash Value) you should insure for slightly more than ACV. The reason for being more has to do with you being able to argue your coach is special and deserves more value with an adjuster. You should not insure for the retail value of a "new" coach.
  • rgatijnet1's avatar
    rgatijnet1
    Explorer III
    Jun 18, 2015
    Klueck wrote:
    Rgatinjet1. Is this Fulltimers coverage? I would need more than $5000 personal effects coverage.

    On mine it is not full timers coverage but I do insure the coach for the entire 12 months with no lapse when it is not being used. Since they gave me the $5000 with no additional charge, I am sure, like most insurance companies, they would be glad to take more of your money and increase the coverage. Just ask them.
  • Klueck's avatar
    Klueck
    Explorer
    Jun 18, 2015
    Rgatinjet1. Is this Fulltimers coverage? I would need more than $5000 personal effects coverage.
  • rgatijnet1's avatar
    rgatijnet1
    Explorer III
    Jun 18, 2015
    Check with this company. They insure in Florida and they are the least expensive that I have found. My bank handles the insurance paperwork. Auto-Owners Insurance
    I have agreed value and they even added $5000 for coverage of personal items in the coach at no additional cost. My premium is $365/year.

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