Gap insurance and total replacement coverage
We are picking up a new TT in a few days and the dealer asked if I wanted gap insurance. I said no the last time and I'm tempted to say no this time too because my DW typically pays more on out month...
Forum Discussion
pnichols wrote:
Hmmm ... I guess there's something I'm missing.
As I understood it, my Progressive full purchase price replacement coverage would pay me, if totaled, what I paid for the RV originally regardless of it's depreciation over the years.
Wow ... considering how much RVs depreciate ... wouldn't getting full purchase price back years later way more than cover anything left on the original loan amount regardless of how many incidentals were tacked unto the original loan? :h
What model year is your camper? How long have you had it? And how long do you plan to keep it?
According to this site:
https://www.rv-dreams.com/rv-insurance-coverages.html
With most insurance companies, Total Loss Replacement is only for 5 years, at which point it reverts to Purchase Price coverage which, again, for most companies, ends at 10 years, at which point it drops to book value only. (The article says Geico is only 4 years and 7, btw.)
At which point, your $100,000 RV will only fetch a check for $30,000 from the insurance company.
Another point to ponder: What about any expensive mods you've done? If you've got an extensive solar panel system on the roof and a large LiFe4pro battery bank, will it pay to replace them, or only your "base" model?
Gotta read that fine print . . .
