So I Want to buy a Motorhome.... Insurance says value low..

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_Rusty_

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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
 
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.
 
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...
 
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.
 
pmdclassics said:
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.
 
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.  :) :)
 
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,  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.
 
_Rusty_ said:
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. 
 
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.
 
pmdclassics said:
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...

 
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.
 
  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
 

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