What RV insurance loss settlement option is best?

By Samantha Lemna | September 17, 2019

An RV loss settlement option determines the amount or kind paid out to you in the event of a total loss claim. In this scenario your RV has been determined irreparable. 

There are four loss settlement options for RV insurance:

  • Actual Cash Value
  • Replacement Cost
  • Guaranteed Replacement Cost
  • Guaranteed Purchase Price

Not all of these options are available for every RV – it is based on the age and type of your RV. We’ll break down these four RV insurance loss settlement options to help you make the best choice. 

Actual Cash Value

The basic RV insurance loss settlement option regardless of RV age or type. If your RV is a total loss you’d receive the current market value (or what you could sell the unit for). Another way of looking at it is the purchase price minus depreciation.

If your RV is unique or you believe it is worth more you can get an appraisal done.

Replacement Cost

This RV insurance loss settlement option is available for trailers until they are 25 years old. If your trailer is a total loss your RV insurance will replace it up to the value insured on your policy. This is the MSRP (not the sale price) of a new current year unit of similar kind and quality in Canadian funds. 

If you opt not to replace your trailer and want a cash settlement it will be calculated as actual cash value.

Guaranteed Replacement Cost

This RV insurance loss settlement option is available to trailers until the unit is 10 years old. If your trailer is considered a total loss your unit will be replaced as new (based on the MRSP of the unit including all taxes in Canadian funds). If you opt to not replace your trailer you will receive a cash settlement based on actual cash value.

Guaranteed Purchase Price

Available only for motorhomes up to 5 years old this RV insurance loss settlement option provides you with the purchase price (including all taxes) of your motorhome in the event it is a total loss. You would get the amount you purchased the unit for – however a bill of sale may be requested.

RV Insurance Loss Settlement Option Help

An RV insurance broker can help you with this important decision. They can review the advantages and disadvantages of each option that you’re eligible for as well as help balance your insurance needs with your budget.