Progressive RV Insurance Scam

[surfride]

I was speaking to an agent from Progressive on why my RV policy jumped another 20% this year. We went through each of the items and the agent made an offhanded comment regarding personal items coverage. The agent said the max Progressive will pay on any personal item is $500. I confirmed what the agent told me in their "California Motor Home Policy" page 35, Limits of Liability Section 2. a under Replacement Cost Personal Effects Coverage, section e. $500 per item.

So the $2,000 notebook I travel with, iPad, or digital camera, if any these of these items are stolen, I am only partially covered. Up until recently, I used to believe Progressive would pay me replacement cost, it sure sounds like it my declaration page where it says "Replacement Cost Personal Effects Coverage." But the scam is found page page 36, section 2. subsection e: max $500 per item.

I personally find this intentionally misleading and an outright scam. I dropped this coverage, immediately and I am shopping for better coverage. If there was a theft, I would end up going with my homeowners for personal items anyway. Why pay for this coverage? Progressive says in their advertising, "Its not a car, don't insure it like one." RIP OFF ALERT.

[Popsie]

crabbin cabin wrote:
It is written in to your policy!? Then it cannot/shouldnot be called a sacm. The only 'scam' is ypour use of the word in your title/text. "Caveat Emptor" alwys has been the rule!

I'm not a lawyer or an insurance salesman, but if it says "Replacement Cost Personal Effects Coverage" up front on the first page, and the $500 limit is hidden on page 35, then it seems to me that they are trying to mislead the buyer. The correct description would be to say "Limited Replacement Cost Personal Effects Coverage ($500 per item maximum)" on the front page (my emphasis added). What other reason could they have for burying the limit except to try and mislead buyers (especially old and slow folks like myself) on what they are getting for their money in order to steal a sale by making their product seem cheaper.

I had a wake up call from "INSURANCE COMPANY NAME DELETED TO PROTECT ME FROM A LAW SUIT" on a homeowners policy due to a limit that I didn't know about until after I'd purchased the policy receiving just a few pages for my money, and then receiving a lengthy stack of pages explaining the coverage in language only a lawyer could understand well after I'd signed up and paid. And to make it worse, I didn't understand that the loss I was trying to get reimbursed for had an unwritten clause "Oh we consider that leaking water pipe normal wear and tear so it isn't covered -- although there was no wording saying "normal wear and tear excluded" anywhere in the policy even though the policy language did included leaking water damage as a covered item.

Don't get me started. My lawyer cousin (who was an Insurance company employee for decades) explained it very simply, they make money by selling policies and collecting premiums, they lose money by paying claims. And, their employees get rewarded for collecting and punished for paying.

I feel better getting that off my chest 🙂

[Jim_Shoe]

I retired from a P & C Insurance Company. Every state regulates insurance rates and coverages in one of three ways. Some states stay out of it all together. Not many. Some states control what can be sold and set the rates that can be charged for that coverage for every policy sold in the state. "Defined Coverage" states. And some, like California, are "File and Use". Companies file their policy coverages and rates with the state, but the state doesn't dictate the coverages or what they charge. That information is in the body of the policy. We know you didn't read it, but relied on your agent, who also apparently didn't read it.
Replacement cost coverage is generally available as an upgrade, but the premium is also higher. Sounds like your agent let you down by not telling you about your coverages. I'd be looking for a different agent.

[mich800]

I have Progressive and just looked at my policy. I pay $11 for replacement cost of personal property with the same caps as the OP. However, that $500 per item cap is for "unscheduled personal effects". You can always purchase extra insurance for scheduled personal effects. So $11 per year seems pretty reasonable for what you get.

[JaBob]

I've never seen an insurance policy that didn't have riders and exclusions. It is nothing new or limited to a single provider.

Bob

[mich800]

I do not see how it is a scam. Replacement cost is simply the method to arrive at the insured value versus cash or depreciated value. The policy then states a maximum value per item.

[msalyer]

I think it is purposely misleading when the say "Replacement Cost Personal Effects Coverage" on the declaration page. Replacement cost to me means just that. It should state Maximum $500 on the Declarations page. Then it would not be misleading.

[powderman426]

Tough crowd here Surfride, but I tend to go with you on this one. If its not scamming, it sure is intentionally misleading if it states in the declaration "Replecement value for personal effects, and then in another sections stating a $500 limit. But hey if people here enjoy getting ripped, who am I to complain. So thank you for the heads up.

BTW I think an attorney would have a field day with this one.

[powderman426]

Tough crowd here Surfride, but I tend to go with you on this one. If its not scamming, it sure is intentionally misleading if it states in the declaration "Replecement value for personal effects, and then in another sections stating a $500 limit. But hey if people here enjoy getting ripped, who am I to complain. So thank you for the heads up.

BTW I think an attorney would have a field day with this one.

[pookiebear38]

My HTT was stolen a few years ago and I had to file a claim with Progressive. We were extremely fortunate that our trailer was recovered minus the battery, microwave, radio and most personal effects that we stored in the trailer. Now I don't have anything that cost much over $150 stored in there. Most expensive were the sleeping bags that we had just put in there for the hunting trip we were leaving on in 3 days. We had a check in hand 3 days after recovery for the towing, the dealer had a check in hand within 1 week to replace the missing items and I had a check in hand for my personal effects in the same timeframe. We had the trailer ready to camp within 4 weeks. I have no complaints with Progressive and will recommend them to anyone. Maybe check with your vehicle or homeowner insurance to see if they cover the more expensive items? I know, not a response to your feeling that they are "scamming" you, but I know from experience that they will work with you.

[bsinmich]

I just went through all of the fine print last week when I changed companies. I actually picked up a couple of small items on the coverage for little extra. I have been in life ins. 45 years and took the Prop/Cas class 4 times but could never convince myself to get into that side of the ins. At least I know what I am getting and definitely realize what the normal person has to go through in trusting your agent. That is the advantage of knowing your agent prior to getting ins.

[Water-Bug]

If they are items that you also use at home, they could possibly be covered by your home owners or renters policy. But then, you would also need to read that policy to know. 😞

[Dtaylor]

All insurance is a rip-off until you need it.
It varies from state to state, but here in SC, my homeowners insurance covers the contents of the TT, my auto policy covers liability from accidents involving the TT and the RV policy covers everything else. Kinda weird but my contents are covered to the same extent my house is covered

[Tom_N]

Scam is a strong word. How could this be a scam, "But the scam is found page 36, section 2. subsection e: max $500 per item."

Rather than a scam I would call it lack of knowledge by the policy holder.

I'm probably in the same boat. I'm not certain what coverage I have for personal property with my motorhome insurance.

[harold1946]

I do not agree with it being a scam or rip off, just a lack of comprehension on your part.
It is quite clear to me it states $500 maximum coverage per item under the replacement cost coverage.

Read and understand a policy before purchase.