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droping insurance


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A lot depends on the state it's registered in. CA hits you hard if you have tags and no insurance, so does MD.

If the motorhome is worth a lot of money and sustains weather damage, fire damage or is stolen then your homeowners insurance won't cover that.

Best talk t your local DMV and you insurance company.

If you don't use it why not sell it instead of letting it rot away???

2009 Monaco Cayman DP 38'

bnbrv.blogspot.com/

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You need to contact the lien holder before you drop insurance. I'd bet that the loan requires you to keep it insured. Pam used to be a bank loan officer and the lien holder is notified by the insurance underwriter when you drop or fail to renew your insurance. What most lien holders do in this case is to add insurance through their agency which is nearly always higher cost than the premiums you now have. That insurance will be added to your monthly payments. Fail to pay for that insurance and the will call the loan, making the remaining principle due and payable, usually within 90 days.

 

It is handled just the same as would be for an automobile.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

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Harry, If your RV loan is with a financial institution, you can be sure that the terms of that loan require you to carry insurance on the asset, whether its registered or not. The insurance company is usually required to notify the lien holder if the policy is canceled or not renewed. Once the bank finds out you dropped the insurance, they will make a demand in writing that you immediately get insurance coverage or pay off the loan in full or the bank may take out their own insurance policy and add that cost to your loan balance. Failing to do either of those, typically within 30 days, they will likely begin a repossession process. If you allow the repossession to proceed, they will auction your rig and then sue you for the difference between the loan balance plus all their repossession costs less what they get for the rig at auction.

You didn't say whether you were currently living in this rig or if its sitting out in the back 40 rotting away. If its your home, you may have some additional protections from repossession. That varies from state to state. A home repossession is a bit harder and longer process, than a vehicle repossession. Those extra costs may be a factor in the bank deciding whether its worth their time & money to go through with the repossession.

The specific steps, actions and timing will vary somewhat from bank to bank depending on the asset value and loan balance.

If you haven't already, speak to your insur agent about lowering the coverages to the bare minimum required and eliminating any optional coverages. If you say its no longer registered or licensed for hwy use, you may be able to completely drop the liability coverages required by the DMV. Of course, if you're still living in this rig and a visitor trips and falls going in/out of your rig, you could be sued without any coverage unless you have other homeowner type insurance.

Jim

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You can also talk to your lienholder and ask if they allow "storage" insurance since it is not being driven. Some do, some don't. Then you will have to ask your insurance company if they have "storage" insurance for a motorhome. If they do, this will drastically cut your insurance cost while still covering the motorhome for things like fire, theft, vandalism, storm damage and other things. What this does is leave "comprehensive" coverage on while removing the liability, collision, towing and other coverages that you will not ever use if you are not driving the motorhome.

Pat DeJong

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Thanks for the replies.I though that would be the case. We have a little diffrent situation than most. We live in the MH for 4 months. The rest of the year we live in the campground owners house as part of our work camping job. We take care of the house ,yard and pets. it's a good deal. Hate paying full price for coverage for 4 months. I have talked to insurance company and they won't do part of the year. I don't want to involve the bank at all. It was worth asking.

c u on the road

airstream harry

2000 Land Yacht MH

2007 Saturn Ion

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You may find that your insurance already allows for the rig being laid up for 3 months a year, several RV policies do.

BnB

probably 100% correct. as when i lived in Rhode island on my motorcycle you get a built in discount on policy as it can't be driven in winter months. so allowance for winter could auto built in.

2000 Itasca Horizon DP (Got Total During Irma). 

Vice President of Charlotte County Defenders LE MC

http://charlotte.defenderslemc.com/

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