Is RV insurance required?

By Samantha Lemna | April 24, 2019

The only RV insurance required by law in Canada is for motorhomes to carry a minimum amount of third-party liability, accident benefits and direct compensation for property damage insurance just like any other car on the road.

If you lease your RV or finance it, your lender may also require you to have insurance as part of the loan terms in order to protect their investment.

Otherwise, RV insurance is not required. However, it is still a great idea to protect your valuable relaxation and recreation time.

Required Insurance for Motorhomes

Just like all other vehicles on the road across Canada motorhomes are required to carry certain insurance coverages. This varies slightly by province, but in Alberta, motorhomes must carry a minimum of $200,000 of third party liability, accident benefits and direct compensation for property damage coverage. This minimum is often far too low given the cost of repairs, medical bills and legal expenses so we recommend our clients carry at least $1-2 million.

Third party liability insurance will help cover the cost of injuries to a third party and your legal expenses if there is an accident. It does not offer any coverage for your own medical care or physical damage to your own vehicle. Accident benefits provide help with medical costs and other benefits to yourself and any passengers injured in a collision. Direct compensation for property damage helps cover repair costs to your property if you’re not at fault or are partially at fault in an accident.

If you’re at fault or your motorhome is damaged by a peril other than a collision (like hail), you’ll need additional coverage. We provide affordable specialty motorhome insurance that offers comprehensive coverage to protect you financially and get you back to RVing should something happen.

Lenders Require Insurance

If you’ve financed your trailer or motorhome your lender will likely require you to have insurance on your RV. This generally means comprehensive coverage so that your unit is protected from a variety of damages including accidents storms fire and lightning. What is required may vary by the lender some may not require insurance at all but you will be expected to pay off the loan if the RV is written off.

Benefits of RV Insurance

Regardless RV insurance is a good choice to protect your recreation time and your wallet. RV insurance provides you with a lot of benefits:

  • Replacement cost or actual cash value
  • Coverage for your belongings
  • Coverage for any outbuildings on a permanent lot (deck shed et cetera)
  • Liability coverage
  • Vacation expenses (also known as trip interruption coverage)
  • Roadside service across Canada and US
  • 24/7 specialized claims service
  • Travel discounts and advice
  •  RV-sharing (through Outdoorsy)
  • Golf cart and ATV coverage
  • Fulltimers and snowbird packages

You can customize your insurance from the above options so that it fits you and your budget. Talk to a broker for details or request a quote online.