Insight RVInsurance 792x792
Return to Insights

Three reasons why proper insurance is critical for boats and RVs


In addition to their day-to-day cars and trucks, more and more households are deciding to purchase a “fun” mode of transportation, such as a boat or a recreational vehicle (RV).

The popularity of boats and RVs spiked during the COVID-19 pandemic1, as a growing number of people sought leisure activities where they could be distanced from others. While that surge has waned, these vehicles remain popular, and buyers have gotten younger overall, which points to some long-term staying power.

If you find yourself in the market for a boat, an RV, an all-terrain vehicle (ATV) or some other leisure-focused transportation, it’s important to properly insure this purchase for three reasons:

Protecting your investment

The coverage provided by an existing homeowners insurance policy is limited for boats, RVs and ATVs. Without proper coverage, your investment could be unprotected in a loss, so your best bet is to connect with an insurance advisor about additional insurance you may need.

If your vehicle or vehicles are financed, the lender will also require physical damage coverage until the loan is paid off to protect their interest.

Protecting others

In addition to protecting your boat or vehicle, insurance can help protect others as well. Liability coverage is required by law for any vehicles that are licensed to operate on public roadways. If you injure someone or damage someone’s property while operating your vehicle, you could be found at-fault.

Boat insurance is not required in most states, but it’s still a good idea to have it, as you can be found liable if an accident on the water leads to damage or injuries. Many private marinas or docks may require boat insurance as well.

Your existing homeowners policy likely won’t offer sufficient coverage, so additional insurance can help limit your exposure.

Protecting yourself and your finances

Finally, proper insurance can keep you covered. Personal injury protection or medical coverage are available for recreational vehicle policies to help protect you or your passengers in case of an accident. These coverages can pay for medical treatment, lost wages and even funeral costs.

Even if you are unharmed in an accident, you can be exposed if others are hurt or if any property is damaged. Without proper coverage, an at-fault liability claim could be detrimental to your finances. Lawsuits and wage garnishment are common practice when no insurance coverage exists, or if coverages are inadequate.

Boats, RVs and ATVs can be a ton of fun for you and your family. Making sure you have the proper insurance coverage gives you peace of mind while enjoying the ride.