Insurance re-visited....
Just wondering... 3 simple questions... 1)What factors did you use on determining how much insurance is enough ? 2)At what point in the life cycle did you reduce (or maybe increase) coverage ...
Forum Discussion
If you're talking about just coverage for the value of the rig you need to have coverage that covers the full value or the amount of the loan, whichever is greater. So if you owe more than it's worth you need to make sure the insurance will pay off the loan if your rig is a total loss. I have progressive and their policy covers you for the actual value or the loan payoff up to the original purchase price. So for example lets say you are able to buy a motorhome for $100k and somehow you convince a bank to give you a $150k loan to buy it and you pocket the extra $50k, the insurance only covers the loan balance up to the $100k. I don't know if a loan like that even exists so you should always be covered. Right now I owe more on my RV than I could see it for thanks to the economy crash. So if my RV was a total loss the insurance would pay off the loan and I'd basically having nothing. If I wanted to replace it I'd have to come up with the down payment to buy another one.
