FAQs on Recreational Vehicle Insurance
What type of vehicle is covered by a recreational vehicle policy?
Motorized vehicles designed for use off of public roads, used primarily for recreational purposes, such as snowmobiles, golfmobiles and trail bikes.
What is the difference between collision and comprehensive coverage?
Collision covers accidental loss or damage to your vehicle because of a collision with an object or another vehicle, or if your vehicle rolls over. Comprehensive covers anything other than a collision loss. Examples of comprehensive losses include: vandalism, theft, fire and hail.
Who will my insurance policy cover?
While policy language varies from company to company, auto insurance policies generally cover anyone you give permission to drive your vehicle. All coverages remain in effect, regardless of the driver. Permission is automatically granted to all members of your household unless the driver is specifically excluded from your policy.
Some common terms
Accidental death benefit
Sometimes called double indemnity, a provision in a policy that pays additional amounts of death benefit if the cause of death is by accidental means.
Actual cash value (ACV)
Actual cash value is the actual or current value of an item at the time of loss.
Agreed value (or agreed amount)
The value of property insured under an agreed value provision is the lesser of the following:
- the actual cash value; or
- the cost to repair or replace the item; or
- the amount stated on the declarations page
- f the policy.
The insured and the insurer agree on the value at the time the policy is written.
All-risk
All-risk property policies, also called "special" or "open-perils" policies, cover any loss unless it is caused by an excluded peril described in the policy. In an "all-risk" policy, the burden of proof is on the insurer. All losses are covered unless the insurance company can prove that the loss was caused by an excluded peril.
Anti-lock braking system (ABS)
In a vehicle with a standard braking system, a driver who brakes suddenly can lock the vehicles' wheels and skid, causing loss of control and extending stopping distances. An ABS pumps the brakes automatically (many times a second) to prevent lockup and to enable a driver to maintain control.
At-fault
This is a term used to describe a person's legal liability for an accident. This ranges from contributory negligence to primary negligence and is usually expressed as a percentage.
Auto physical damage coverage
Auto physical damage coverage, also known as "damage to your auto" coverage, insures against loss resulting from damage to an auto owned or operated by the insured. It also provides coverage if the car is stolen.
Auto towing and labor coverage
Pays for road service or towing and labor performed at the site of disablement.
Beneficiary
The person designated to receive the death benefit when the insured dies.
