Insurance Car Insurance Car Insurance Basics When Is RV Insurance Required? By Emily Delbridge Emily Delbridge Twitter Emily Delbridge is an authority on car insurance and loans who contributed to The Balance for nine years. Delbridge is a licensed Personal Lines Insurance Agent who has been in the insurance business since 2005. Since joining the industry, she has significantly contributed to the book of business for independent agency, Great Michigan Insurance. learn about our editorial policies Updated on October 15, 2021 Reviewed by Samantha Silberstein Reviewed by Samantha Silberstein Twitter Samantha Silberstein is a Certified Financial Planner, FINRA Series 7 and 63 licensed holder, State of California Life, Accident, and Health Insurance Licensed Agent, and CFA. She spends her days working with hundreds of employees from non-profit and higher education organizations on their personal financial plans. learn about our financial review board Share Tweet Pin Email In This Article View All In This Article When RV Insurance Is Required When Insurance Is Optional The Bottom Line Frequently Asked Questions (FAQs) Does a travel trailer need insurance? How much does RV insurance cost? Photo: Klaus Vedfelt / Getty Images Owning an RV can be a lot of fun. It can provide a novel way to travel across the country, but you'll have to invest a good bit of money. Many RVs can cost as much as a house. Even a modest RV can be a high-cost purchase. You must also budget for ongoing costs, such as RV insurance. It’s vital to know whether you must carry it when you're planning to purchase a set of house-toting wheels. Many factors can come into play. Laws vary by state, making the process rather confusing at times. Some rules can make the process of knowing whether you're legally obligated to carry it a little clearer. When RV Insurance Is Required At least the same amount of liability coverage that you must carry on a car is needed for an RV in all states. There are some special cases, but you'll most likely need a separate RV policy if your RV is a Class A or B motorhome, if you took out a loan to finance the purchase so you don't own your RV outright, or if it's a rental. The law states that motorhomes must have liability insurance if they're driven on the road in most states. Full coverage can be optional, based on whether you've financed the vehicle, but that doesn't mean that you should opt out just because you have the choice. Figure out the value of your RV versus the chance of a loss to decide if your savings can bear the cost of the damage risk. Weigh the option of extra coverage if you live in your RV full time. Financed RVs Lenders often require that financed RVs carry full coverage. They want to recoup the money they lent in the case of a loss. Your lender could take out a policy and send you the bill if you don't purchase it yourself. Lender-purchased plans often come with much higher premiums and no liability coverage, so buying your own plan can be the smarter choice. Rental RVs You're responsible for a rental RV while it's in your possession, so make sure you have coverage. You can check with your auto insurance carrier to find out whether your auto coverage extends to a rental RV. Rental dealers often either include insurance in the price of the rental or have short-term policies available for purchase if your auto plan won't cover it. Note Check with your credit card lender, too. Some cover RVs you rent with your card, just as they often cover car rental insurance if you book a vehicle using your card. When Insurance Is Optional Coverage is often optional if your RV is only towable (Class C and not driven). It might also be optional if you own your RV outright: There's no loan against it, and you live in a state where RV insurance and liability insurance aren't mandated by law. RVs that are towed include fifth wheels, pop-ups, and travel trailers. Liability coverage is often extended from your auto policy to your RV when you're towing it. Your auto liability coverage will cover the costs if your camper comes unhitched from your truck and damages someone else’s property. Note States often don't require insurance on towable RVs, because liability is covered under your car policy. A loan-free RV means that you own the camper outright without any financing. RV insurance is only optional if your RV has no loan against it and is only towable. Insurance isn't optional for RVs unless you live in a state that doesn’t require RV insurance. You'll have to carry the same state-mandated liability that you'd need on an auto if you're driving your RV on the road. These rules vary by state, but almost every state mandates some type of liability coverage for damage you might cause to other vehicles. The Bottom Line You might still want to carry full coverage on your RV even if it's not required by law, because a total loss could be financially devastating. This might result from fire or theft. It doesn’t mean that you shouldn’t purchase coverage just because you don't have to carry it by law. Lots of owners leave their RVs parked out in an open yard, so they're at risk for storm damage, vandalism, and theft. Always talk to your insurance agent or other professional before deciding whether skipping insurance makes sense for you. Frequently Asked Questions (FAQs) Does a travel trailer need insurance? Anything towed is typically covered by auto insurance, so extra coverage for travel trailers should be optional. How much does RV insurance cost? RV insurance costs depend on the size of the RV being insured. Travel trailers can be insured for $500 or less per year. Insuring Class A motorhomes will likely cost more than $1,000 per year. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Progressive. "RV Insurance 101." Nationwide. "Is RV Insurance Required?" Trusted Choice: Independent Insurance Agents. "Is RV Insurance Required?" Good Sam Insurance Agency. "Full Time RV Insurance,"