UNDERWRITING FACTORS

Insurance companies underwrite to assess risk associated with an applicant. That is, what groups are at a higher risk to make more claims. The groups with a higher claim history will pay more for Recreational Vehicle insurance. Underwriting factors that affect cost are:

• Driving Record – Drivers with previous traffic violations and at fault accidents would be placed in a higher risk group.
• Marital Status – Claims among married policyholders are less than single policyholders putting them in a lower risk group than single policyholders.
• Residence – The location where you garage the vehicle (usually your residence) also affects the rates. More claims are made from urban areas than rural areas.
• Age and Gender – Some age groups fall into higher risk groups. Males have more accidents than females. Teenagers have many more accidents than the rest of the population. A small number of states have prohibited insurance companies from using gender as a risk factor.
• Use of Vehicle – Higher annual mileage will usually result in higher cost because of the higher exposure to risk. · Type of Vehicle – The type and cost of the vehicle you drive will affect the cost of the insurance.
• History of Prior Coverage – If you were cancelled because of non-payment of premiums from a prior insurance company your rates in some states might be affected adversely.
• “Better Risk Discounts” – If you qualify, discounts you should ask for:
  • Multiple Vehicles
  • Good Student
  • Safety Devices – Automatic seat belts, Anti-Lock brakes, Air Bags etc.
  • Drive a low amount of miles each year
  • Good Driver
  • Anti-theft devices
  • Driver Education courses for young and old drivers
  • Vehicle and Homeowners policies with same company
  • Dividends

Depending on the type of legal and financial responsibility system used in your state, you will need to purchase either recreational vehicle liability insurance or no-fault insurance.

LIABILITY INSURANCE

Bodily Injury Liability Insurance protects you against claims of other people who are injured when you are at fault. It does not protect you against damage to you personally or your vehicle. It protects you from their damages such as medical expenses, lost wages, and pain and suffering. You will also be covered for damages if the accident was caused by a member of your family living with you or a person using your vehicle with your consent.

Bodily injury liability insurance is purchased with specific benefit limits. These limits address how much money the insurance company is committed to pay for any one victim in an accident and limits the amount they must pay for multiple victims. Most states require you to purchase minimum amounts of bodily injury coverage. If you raise your coverage your premiums will increase because the insurance company will be assuming a higher risk.

Property Damage Liability Insurance pays for any damage you cause to the property of others. It could be a dented fender, broken window, or damaged property. The insurance company will pay the claim whether you were driving your vehicle or whether it was driven by another person with your consent. Property damage liability insurance is purchased with specific benefit limits. Most states require you to purchase minimum amounts of property damage liability insurance.

Uninsured motorists coverage is protection for you. This coverage pays you if you are injured by a driver who does not have vehicle insurance or by a hit-and-run driver. This coverage takes the place of the insurance the other driver should have purchased but did not, or covers the amount the other driver’s insurance does not cover. Uninsured motorists coverage is purchased with specific benefit limits. Most states require you to purchase minimum amounts of coverage. This coverage does not protect the other driver and may not cover damage to your vehicle.