Considering dropping insurance coverage on Airstream

[RAH]

With COVID I now drive maybe 100 miles a month, so I’ve been reconsidering if I should keep collision insurance on my trucks/cars. My main consideration points are: (1) what is my risk of collision? (2) based on the age of my trucks/cars (7 years), their value is reduced, so any insured event will pay me less than when the trucks/cars were new.

After all of this thinking about my trucks/cars, I started to look more closely at my AS insurance. My AS insurance premiums increased 8% from 2017 to 2018, and another 25% from 2018 to 2019. Current quote is for a further increase in 2020. Which got me to thinking, similar to my trucks/cars, do I even need to insure the AS any longer? When the AS was new, it was this shiny, new, expensive item, and of course I wanted/needed insurance in case I wrecked it, or fire, theft, etc. After 7 years of ownership, I’ve become comfortable with towing, backing, etc. But the AS is 7 years old, and while there is always the risk of totaling the AS, either on the road, at camp, or in storage, how high is that risk? My current policy is agreed value equal to my purchase price when new.

My main consideration points for whether I should keep or drop insurance on the AS are (1) what is my risk of a total loss? (2) If I am not insured for collision/comprehensive, in the unfortunate event of a total loss, am I financially able to withstand the consequences?

I will keep full liability coverage on my tow vehicle, and an umbrella policy for losses that may occur to others. The only coverage I am thinking of giving up is coverage for my losses that would be covered with a collision and comprehensive policy.

Should I even be considering dropping this coverage on a 7 year old AS? Anyone have experience, or other things you consider, when making these decisions?

[Mollysdad]

I'd drop the agreed value on a 7 yr. old Trailer.
That will reduce your premium. Also, do you have the truck and trailer on the same policy? That may also help.
Remember, a good hail storm can total an Airstream.
My policy has agreed value for 5 years, then it drops to, I guess what the adjuster says.

[ROBERT CROSS]

I didn't drop altogether, but did raise the deductible.

Disclaimer...our TV is already insured as a TV only with a 5K annual average mile amortization.👍

The AS is bundled with our home owners.

Bob
🇺🇸

[57Vintage]

I would suggest another point to consider. If you drop collision and comprehensive coverage on the trailer, you can be responsible for all expenses incurred to remove the trailer from the scene and storage fees. It now becomes your responsibility to deal with the 'salvage'.

Since this would probably happen away from home, that can be a big headache. I would suggest the higher deductible and let the insurance carrier take care of these details.

[lsbrodsky]

If you can afford it, I am a firm believer in self-insurance to the extent that you obtain the highest deductible that they will underwrite. That will give you the lowest premiums with total loss coverage, but will force you to stay away from the insurance company for any other claims.

Larry

[uraljohn]

We shop our insurance coverage every year on our 3 cars, a Vespa scooter, home and Airstream. After living in and owning a home in Naples, Florida since 1990 and living there full time 2001/2014 (now western North Carolina) we learned that by shopping our policies every year and keeping a close eye on coverage needs we kept our insurance costs within reason.

I suggest you review your coverage needs with at least 3 or 4 local independent agents. You live in Cincinnati. I grew up just north of you in Fairfield. There are a lot of independents you can talk to that may save you considerable coin and still maintain decent coverage.

FWIW, we currently insure everything through FCIS (Farm & City Insurance). They advertise on the back cover of Airstream Life magazine. We have found them easy to work with and responsive to any questions. Home and cars are with Safeco (part of Liberty Mutual) and the Airstream and my Vespa 300 GT scooter are with Progressive. This is our second year with them as the rates did not increase and we were not able to beat the price and coverage offered.

[featherbedder]

Yrs. ago I dropped collision ins. on pu, 5 days later drunk passed out lying on seat {car had to be cut apart to extricate him motor was partially on top of him but not seriously injured} hit me head on when I was 1/2 on shoulder 1/2 in my lane on out side of curve on 4 lane as I was trying to get out of way this was at 65 mph before speed limits. Drunk no driv. lic. no ins. my total loss. He was arrested at court no show but lawyer asked me to make deal I stated NO. lawyer rec. continue act. to study case next time drunk no show, lawyer stated doesn't no where he is, warrant issued for arrest. Then state dmv had hearing threatend me w/loss of lic if I didn't reappear, I expl. he has warrant can't be found, took statement, this hearing was 55 miles from residence. I was out several thousand $ plus time plus I was on way to work, never made it. NEVER AGAIN EVEN HOW SLIGHT SAVINGS OF INS will I drop collision....My only Inj. was dislocated thumb caused by steering wheel and sore neck & this was before seat belts.

[jcanavera]

Well insurance is always a bet. Some of us never put in a claim. But Collision I think, has value and like others have mentioned you can do things with the premium by raising that deductible. And I had a friend who was hit from behind by a hit and run driver on a wet pavement. That friend was not caring collision and was left holding the bag for the damage that the hit and run driver caused.

If policy price is important you can shop every year as was noted. A couple of other tricks is to be sure you inform your insurer as to where you store your trailer. I called mine recently and on a hunch asked as to whether my storage location for the trailer affected the premium rate. I never thought about the fact that over the years my insurance was always showing my home address and the assumption of the insurer tha the trailer was there. As it ends up I've been storing my trailer in a rural locale about 30 miles from my home for the last 15 years and inside a garage. Upon informing my insurance company of that fact, they rerated my policy for the Airstream to that rural storage location and found that my rate went down about $200 annually. One other possibility is that some insurers will allow you to lower your rates during the winter offseason. That reflects the lowering of risk because the trailer is not on the road.

Jack

[pjshier]

Full disclosure, I used to sell insurance years ago. The underlying concept for property damage insurance is a trade between an uncertain future cost in exchange for a known current cost or premium. Always a gamble until the day after the loss event, then the math is precise.

Point: highest deductible you can handle or no comp/collision is perfectly acceptable if you can swing the loss and make peace with the result. There were many years I did not carry property damage on the airplane, knowing it was on me to retrieve the wreck, and had some resources set aside for same. Also made peace that a big loss meant I was out of the flying game for the duration.

[Mike1997]

For those with motorhomes, dropping collision coverage makes more sense cause its not on the road. I have done that a few times in the past when the Landyacht was not in use. Might do it again once I get it moved into a locked garage at end of summer.

[banderabob]

For me, I would be more concerned about coverage for theft than collision.

[Daquenzer]

I was in an area that had a tornado go through it. Many people that had their homes paid for didn't carry property insurance. The result....they lost everything. Now an AS is not like a house. If you lose it you lose it. You still have a roof over your head (assuming you are not full time).

1. I think increasing the deductible is a good way to go. I don't think I would eliminate insurance UNLESS I knew I wasn't going anywhere on the road for quite some time. Then I might pause it and re up it.
2. About the time you cancel it...That $50 a month (which is my cost) would look pretty cheap at that point.
3. Also some policies are based upon usage. The more you travel, the more you pay, vice versa. Might check that out.

[Bill M.]

So what if you spend some extra money on insurance? It still buys some peace of mind.

[1Boyscout]

Think again about insurance on the AS. Last year, my 2015 International Serenity was in a hailstorm at home. It had a new top, door side,rear corner rt top, new door, etc. It was like new again. was in shop 104 days. Thankful that I had $500 deductible. Total bill was $42,000 plus. I have insurance with Hartford on 2 vehicles, AS, and our house. RV insurance is cheap. It is covered by the tow vehicle while towing. I have had two claims since 2006. 1st was only $5,000. I could have absorbed that, but was only $500 deductible. It is just a gamble.

[1Boyscout]

My AS insurance is only $121.00 a year.

[jcanavera]

To me it's not as how cheap it is, it's the return on that investment if you have to use that insurance. As my Airstream ages and its value dwindles in many insurer's valuation tables, having an agreed upon value clause in my policy will be the difference in my Airstream either getting fixed or a good return on my insurance investment if it ever gets totaled. Especially when you know that there is no equivalent model like yours being built anymore.

Jack

[RAH]

thanks all for the insights and your experiences!

[overlander63]

I've found insurance is only expensive until you need it. Then, it's a bargain.
Dropping insurance can be a false economy. I would look into an agreed-value policy, now that your Airstream has aged to the point its NADA value has fallen below what it would cost to purchase a replacement of the same year/condition.
Most auto insurance companies will only insure up to the actual cash value.

[matthewk]

Check your policy it's likely your auto policy will cover any type of liability while towing. To cover the trailer itself, get a personal property rider on your house and insure it for whatever value you want (same kind of policy for jewelry or art). My 2021 FC 23 insured for $80k costs me $325 annually.