Can anyone recommend a good insurance company for my setup?

I've been reading all the messages on insurance but can't quite figure this out.  I won't be full-timing right away, but I sure hope to be doing so by mid November.  My tow vehicle that I just bought and waiting for delivery is a 2007 Silverado 2500HD Classic diesel 4x4, cost about $22k (134,600 miles). 

I'm getting ready to buy a 2008 Arctic Fox 23-5A (I love it!!), cost about $19k.  Yes, I can full-time in such a small RV for a couple years before moving up to a 27-footer.  Both the TV and the RV are financed.

I filled out the insurance quote request form on the RV America website and was contacted by them today.  The salesperson said both TV and RV can be insured full-time, $1,000 deductible each, for about $900/year, most of which will be the TV at $553/year.  He said it would be through Allied Insurance, which is rated A+. 

$553/year seems really cheap to me for a 2007 $22,000 truck, since my 2002 Pathfinder ($9k value) is insured at $600/year with Progressive, and it was the best deal I could get.  The fifth wheel at $250/year also seems really inexpensive.  I forgot to ask him about contents insurance. 

I'm conservative when it comes to insurance.  I prefer the peace of mind of knowing I'm covered than saving a couple hundred bucks a year.  On the other hand, why pay more than necessary.  I haven't checked Good Sam yet, because I'd like to know what other full-timers would recommend.  I live in Oregon, own my home, and will likely rent it rather than sell it, which means my homeowners insurance will still be in effect, if that makes any difference.

Online research hasn't really helped me.  The only reviews I read about Allied were negative, but the fact is that you don't really know who is posting what.  The members of this forum have "been there done that," so any advice or recommendations would be greatly appreciated. 

Have had State Farm for years.  Been totally satisfied with their service.  May not be the cheapest, but they have always been there when I needed them.

I had State Farm homeowners and car insurance when I lived in Texas.  They are an excellent company.  I'll put them on my list of potential insurers.  Thanks!

You will often find that bundling your homeowner's with your auto will save you money. However, you will also probably discover that you will have to change your insurance when you start renting/leasing your home and will no longer be able to carry homeowner's insurance because it is no longer owner occupied. Check with your agent.

You will also likely discover that insurance companies do not necessarily like the idea of fulltiming in an RV and writing that coverage. The question is disguised as "where do you park your RV when not in use?" or "how many weeks a year do you travel?" Our answers are "on our property" and "more than six months a year".

We fulltime, and use GEICO, and have full coverage, including contents on the motorhome and full coverage on the Honda. Ours runs around $1300 a year on a brand new motorhome.

That's very helpful info.  I just made the mistake of filling out a quote request for Good Sam and indicating my RV will be used for business.  Well, it isn't used for business per se, that's just where my "office" will be, because I'll be working on my computer at the dinette.  But I won't have walk-in clients or anything like that, as all my work is sent to me via Internet from Texas.  My RV "office space" will be a business writeoff, which is a totally different thing.  Their quote on the Silverado was $742/year.

It sounds like the best thing for me to do is to rent my home, and come back occasionally.  I can buy a permit from the City to park on my lower lot, and sit there for a couple weeks while I visit with friends and enjoy the beautiful scenery here. 

I couldn't find the RV insurance section of State Farm in the dropdown menu of their website, and the Hartford "check quote" link didn't work in any of my browsers 

When I remarried, she had Allstate, I had USAA.  We have maintained a couple different policies with each company and have their respective multi-policy discounts. Quotes for the RV were much better with USAA.  For the motorcycle though, I have to pinch myself when I think about how little Allstate charges me.    Both companies offer outstanding customer service.  It pays to shop around though.

Freedom First said:

I just made the mistake of filling out a quote request for Good Sam and indicating my RV will be used for business. 

Click to expand...

That changes the whole underwriting to commercial and sets off all kinds of red flags, but then you know that now. 

GEICO has a special group for underwriting RV's and the quote can be done on their website. They are extremely thorough. One thing you will be asked is your coverage limits so have an idea of what limits you want before you get quoted as they change the cost and the minimums will often vary by state of registration.

Using part of your RV as a tax deduction for office space is really going to wave flags at the IRS.  It would be very difficult to meet the requirements of the "office in home" deduction in an RV.  I suggest you discuss this with your tax accountant or attorney before filing any taxes using that deduction.  I think you'll find it isn't worth the effort and can only cause you tax problems.

If you check our Resources section, you'll find a list of insurance agencies that write full timers coverage.  Do as many of us do and get as many quotes as you want, but be sure to specify the same coverages for each quote.  You will have to decide on a "garaging address", which for a full timer is usually their mailing address.  That choice alone can make for widely differing quotes on the same coverage.

Well, the last thing I want is to wave a red flag at the IRS.  The office space wouldn't be worth the deduction anyway, I'm sure, but the mileage will be partially deductible because I will be marketing products at select retailers, and that's a separate issue from the RV use.

I'll check the Resources section, too.  I went ahead and put the towing vehicle on my same Progressive policy as my current passenger vehicle because that one is up for renewal anyway, just to get that done and out of the way, and can then shop around for RV insurance since I won't buy it until end of August. 

It feels like a hassle now, but it will all be worth it when I'm hiking a trail with my dog in a new place, and we come home to an RV instead of this same ol' house  ;D

It's all but impossible to compare insurance rates - there are too many factors involved to make any meaningful comparison among individual situations.

Value of the vehicle is a small factor in the quote - it basically affects only the collision and comprehensives portions, and those are probably only half the total. The chances of the company having to pay out a total loss are relatively small, to the peak value is not a huge factor in cost. Kind of surprising, isn't it?

Make sure when comparing quotes that the basis is the same. Same limits of liability, same collision & comp deductible, same vehicle value, same state/county of residence (even if fulltiming), etc.

Trailer are inexpensive to insure because there is no vehicle liability insurance involved (not a motor vehicle).

Liability coverage must be inexpensive in the location being used as the basis for your quote. I'm guessing a rural town, well away from any metro area.

Don't be so sure the mileage will be a deductible expense either.  I worked out of our motorhome for 13 years and my CPA in year one told me that nothing would be deductible as the RV was my home.  I could take the RV to a destination, rent an apartment for the duration of the job, and that would be a business expense, but nothing related to the RV was deductible.  Again, you need to consult with your tax professional before trying to take any deductions for the RV.

Unless you maintain a "home base" (which has to be a real house - not rented out to others or apartment) the IRS will likely consider you an itinerant worker and you will not be able to deduct travel or even RV Park fees. Been there, done that for three years including several cross country trips to consulting assignments. So while I charged my clients for my travel and "lodging" I had to include in my income with no offsetting deductions.

ken

Ken & Sheila said:

Unless you maintain a "home base" (which has to be a real house - not rented out to others or apartment) the IRS will likely consider you an itinerant worker and you will not be able to deduct travel or even RV Park fees. Been there, done that for three years including several cross country trips to consulting assignments. So while I charged my clients for my travel and "lodging" I had to include in my income with no offsetting deductions.

ken

Click to expand...

Ugh, that's terrible.  Maintaining a home base not only means losing rental income of $500/month (after insurance/property tax/upkeep taken out), it also means I have to keep the electric on and the water on.  I guess I could advertise for a roommate, which doesn't qualify as a full-time renter but at least the house would have an occupant.

If I rent my house, I'm taxed on rental income but have no RV deductions.  If I keep my house, I can deduct RV expenses and my home office.  Or I can sell the place and forget about deductions completely.  There's something very wrong with the IRS treating someone differently just because their home is on wheels.  At the very least, we still have electrical/water expense in the form of hookups. 

Fortunately, my accountant is a stickler for details and conservative in his approach, so I'm sure he'll give me good advice.  My work would actually be done in the RV with no walk-in clients; it's strictly transcription services that are conducted via the Internet.  All I would charge for is the actual work I do, just as I've done for the last 20+ years.

Thanks for all the replies.  It sure gives me a lot to think about.  Maybe I won't need to spend $4,000 fixing all the things that I can live with but would have to be upgraded before a tenant can take occupancy.  I just don't like the idea of no one being in the house for such long stretches of time.

There is an awful lot wrong with the IRS in addition to your comments. If I were you and your accountant is conservative I would listen to the advice. If you find yourself on the wrong side of the IRS you will not be happy. Yes, this comes from experience.

dave61 said:

There is an awful lot wrong with the IRS in addition to your comments. If I were you and your accountant is conservative I would listen to the advice. If you find yourself on the wrong side of the IRS you will not be happy. Yes, this comes from experience.

Click to expand...

Hi, Dave

Truer words were never spoken.  Many years ago I had to deal with them.  They misread my return, refunded me too much money, and three years later came after me for the overage plus interest plus penalty.  You're right, I wasn't at all happy with their position, especially since I was paying for their mistake    The only good thing about it was that the agent I dealt with was very nice, but there wasn't anything he could do about it. 

We got GMAC insurance on our 5th wheel because you can put it in storage when at home and take out of storage to use.  Was lot cheaper than State Farm which we have on everything else.  Have never had to use so don't know how they pay.

I had State Farm on everything, including my 5th wheel.  After owning the 5th about a year, I switched trailer insurance on it over to GMAC after talking with my SF agent.  He said there was no way for SF to match the coverage being offered by GMAC..  The attraction was the replacement with new comparable unit if declared a total loss within first 5 years, or matching the original purchase price if total loss after 5 years.  As for service, I happened to rub a low hanging branch a couple of years ago and ripped the rubber roof at the edge. Simply faxed pictures of damage, paid the deductible and WALLA!  New roof!  Although available, I haven't used the "out of service" feature.  We like to be able to hook up on a moment's notice  and go if the weather is good.

TomHaycraft said:

When I remarried, she had Allstate, I had USAA.  We have maintained a couple different policies with each company and have their respective multi-policy discounts. Quotes for the RV were much better with USAA.  For the motorcycle though, I have to pinch myself when I think about how little Allstate charges me.    Both companies offer outstanding customer service.  It pays to shop around though.

Click to expand...

I've got Dairyland for my motorcycle, they are less than half of what Allstate wanted to charge me, and Allstate already insures several things for me.  My Allstate agent recommended them, they specialize in Motorcycles.  There are many pretenders out there, so here's there website. 

https://www.dairylandcycle.com/motorcycle-insurance