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Author Topic: So I Want to buy a Motorhome.... Insurance says value low..  (Read 837 times)

_Rusty_

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So I Want to buy a Motorhome.... Insurance says value low..
« on: March 06, 2018, 11:35:31 AM »
So I have been searching for a motorhome and settled on a 2004 Tiffen that is available locally (sort-of).  In the process of checking everything out I requested a quote for insurance.  The gal told me that based on the VIN, the insurance value is $10k less than the asking price.  The asking price is in line with NADA values on their consumer web-site.  It sounds like the insurance companies value these things on the "Loan value" and not the consumer value we used to see in their booklets (trade-in v.s. retail).

Should I be concerned the "value" of this machine is much less than paid for? I really doubt they will lower the asking price at this point.

not-yet.. soon
bill & ilean
2004 Tiffen Allegro Bay 37db
Workhorse 8.1/Allison 1000
Near Punxsutawney, PA
(for now)

Isaac-1

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #1 on: March 06, 2018, 11:49:00 AM »
You may want to shop for an "agreed value" insurance policy otherwise you may find that the insurance company will want to total it if it is ever in even a minor accident.
2002 Safari Trek 2830

_Rusty_

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #2 on: March 06, 2018, 01:01:42 PM »
She gave me "agreed value" quote and "book value" quote, about 150 difference in price per year. "AAA". about $115 less than "Floe" could get me...
bill & ilean
2004 Tiffen Allegro Bay 37db
Workhorse 8.1/Allison 1000
Near Punxsutawney, PA
(for now)

pmdclassics

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  • Posts: 6
Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #3 on: March 06, 2018, 01:31:47 PM »
Do you mind saying how much it costs to insure it?  I do not own a motor home but want to in the next couple of years.

Larry N.

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  • Westminster, CO
Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #4 on: March 06, 2018, 03:08:25 PM »
Do you mind saying how much it costs to insure it?  I do not own a motor home but want to in the next couple of years.

You likely would have a different cost, even for the same unit. The insurance company you choose, your location and driving record (among other factors) can sometimes make a two or three times difference in insurance costs.
Larry and Mary Ann N.
2016 Newmar Ventana 3709 -ISB6.7 XT 360HP
2015 Wrangler Sahara Unlimited toad
Formerly: Trailmanor 2720SL, Bounder, Beaver
  de N8GGG

Tom Hoffman

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #5 on: March 06, 2018, 03:26:44 PM »
You should be able to buy a unit for 15-25% under NADA as they typically have depreciated that much from the first day of course all private sellers want as close as they can get for it.  I would keep looking and stay away from dealers. 

A 14 year old unit is not even allowed in some snooty camp grounds.   :) :)
Wife said to me. "What cha doin' today?"  "Nothin'" says I.  "Ya did that yestiday!" Says she.  "I didn't get done!" says I

2003 F-350 Super Duty Lariat Dually 7.3 Diesel
2008 34' Sunny Brook, Brookside

Gary RV_Wizard

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #6 on: March 06, 2018, 03:49:56 PM »
Different insures may figure the value differently as well, and using am algorithm that sets a lower value is one devious way to get lower rates.  Get more quotes, and ask how they figure "fair market value" in the event of loss. Or always ask for an agreed value or repalcement value, you that you get an apples-to-apples rate comparison.

Unlike autos, NADA value for RVs is not validated by thousands of documented sales transactions - it's basically estimated depreciation. Condition and local market factors (even season of the year) can substantially increase or decrease the price vs NADA. So no, a $10k difference from NADA doesn't necessarily mean the rig is overpriced.  It's means you might want to look more closely, though.

I have to disagree with Tom Hoffman's estimate of 15%-25% under NADA.  One cannot assume a discount from NADA value like you could for MSRP.  Further, the NADA book value already factors in the 1st year depreciation hit, typically about 20% down from MSRP. Yes you can sometimes do even better than that, but not anywhere near 25% additional.
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

Tom Hoffman

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #7 on: March 06, 2018, 04:40:34 PM »
Gary,  something already 14 years old should be worth less than half of LIST.   Most units I have bought from private sellers have come in very heavily discounted from NADA for that year and model.   When we bought our current trailer, it had a loan value of 23K.  we bought it for 14K it was 5 years old.  Now it is 10 years old and I doubt it would go for over 6-7K and it is in very good shape.
Wife said to me. "What cha doin' today?"  "Nothin'" says I.  "Ya did that yestiday!" Says she.  "I didn't get done!" says I

2003 F-350 Super Duty Lariat Dually 7.3 Diesel
2008 34' Sunny Brook, Brookside

garyb1st

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #8 on: March 06, 2018, 05:30:16 PM »
She gave me "agreed value" quote and "book value" quote, about 150 difference in price per year. "AAA". about $115 less than "Floe" could get me...

How does an insurance company determine book value based on a Vehicle Identification Number? 

If I didn't just switch to AAA, I'd say get another quote.  Saved quite a bit of money.  But to be honest, I didn't think about stated value.  Actually I've never insured anything on a stated value basis.  It costs more money.  Just like lower deductibles cost more money.  I prefer to keep the money in my account and take my chances.   
Gary B1st

2005 Pace Arrow 35G
2016 Jeep Wrangler


Poverty exists not because we cannot feed the poor, but because we cannot satisfy the rich.

Isaac-1

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #9 on: March 06, 2018, 05:56:54 PM »
Trailers and motorhomes are a bit different in their used values, finding a older Motorhome that is priced significantly below NADA often means you are looking at a money pit.
2002 Safari Trek 2830

_Rusty_

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #10 on: March 06, 2018, 06:16:33 PM »
Do you mind saying how much it costs to insure it?  I do not own a motor home but want to in the next couple of years.

I'm looming at a $30+k unit i think is a good value. FLOE offered insurance (based on my 0 accident history) coverage for $560 / year. AAA says $470/yr for agreed value and $360/yr for pro-rated value coverage. My current provider (erie) wants $1k.  All quotes are same coverage amounts.

No matter what, i always pay too much...

bill & ilean
2004 Tiffen Allegro Bay 37db
Workhorse 8.1/Allison 1000
Near Punxsutawney, PA
(for now)

Gary RV_Wizard

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #11 on: March 07, 2018, 10:10:56 AM »
Your accident history is no longer very relevant in insurance pricing. A really bad driving record may be a negative, but lack of accidents is just neutral. Statistical evaluation for  insurance rates has gone far beyond the simple age and driving record of decades ago. These days your credit rating probably as more weight!

Each company has its own rating methodology and many of them treat an RV as essentially an expensive car. Others try to assess an RV as a different class of vehicle with a unique loss rate that is different than autos.  RVs used to have a much lower loss rate vs vehicles as a whole, but indications are that RV loss rates are trending toward those of all other vehicles.  Lots of conjecture about why that is happening, but the net result will be increasing rates.
« Last Edit: March 07, 2018, 10:15:22 AM by Gary RV_Wizard »
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

Utclmjmpr

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Re: So I Want to buy a Motorhome.... Insurance says value low..
« Reply #12 on: March 07, 2018, 12:06:30 PM »
  All that "agreed value" means to most insurance companies today is that in the event of loss, they start RENEGOTIATING the value
 and the waiting game is on. I have found that the only leverage you have is to have the RV in a tow companies impound yard at the rate of $50.00 to $75.00 per day.. Then the "renegotiating" will speed up.>>>Dan
38' American Tradition 38TT/330 turbo Cummins
Jeep liberty 4 down
72 VW Baja 4 down
Cedar City, Utah
USAF vet. 59-63
The difference between intelligence & stupidity is: intelligence has it's limits
      Albert Einstein.