Insurance for Fulltimers

Keeping covered on the road.

I'll come right out and start this article by saying I don't like insurance companies. You always hear about how people get dropped after being clients for years and then they make one claim. I've seen my mother run out of business by insurance companies in Arizona who refused to pay her birth center the same as they pay hospitals, even though it was required under law. I even knew an insurance executive that told me in confidence that one more hurricane and his company would declare bankruptcy to keep from paying on policies in Florida. A year later they did and he just moved to another company.

So I don't like insurance companies, but they are a required part of our lives like them or not. When you hit the road you will still need to think about two main catagories of insurance: Auto/RV and Health/Life.

Auto and RV Insurance

Since this is required by most states, you know you are going to have to pony up the money to cover your RV, tow or toad vehicle, and any motorcycles, ATVs and other toys you bring with you. But don't forget you need to cover all the valuables in your rig, as well as property issues.

Most of my life we have used USAA Insurance. This is for citizens who have performed military service and their families. If you qualify for their services, and they do the full range of financial services, make use of them. Except if you are a fulltime RVer.

When we started fulltiming we kept our truck and fifth wheel insured through USAA. When we added the RV to the policy we said several times that we were going to be living in it full time. They gave us a good price and good coverage, and it was only a year later when it was time to renew the policy that we read the fine print excluding full time use of the RV.

So we switched to the Good Sam's insurance through GMAC. They have given us good service - although we have not had to make a claim yet - and the coverage was pretty comprehensive. The best part is they have policies geared towards fulltimers with higher coverage for belongings in the RV among other key issues.

Whatever company you go with, make sure you get adequate coverage. Fulltimers usually have more "stuff" in our RVs since they are our homes. You need to be covered against fire, theft and personal liability for your RV as well as accidents and mechanical problems. And don't assume that your buddy who has been handling your insurance needs all your life will have an inkling of what is needed for fulltiming.

Health and Life Insurance

Life insurance coverage is pretty easy. Most policies will not care if you are traveling across the U.S. It is good to have since you don't want to leave your partner, family, or estate short of funds if anything happens on the road. You know better than anyone else what amount of coverage you need. We are fortunate to be young enough that term life is still a good option, but we have started to covert to whole life. And that is the extent of our retirement planning.

Health insurance is another game all together. To my knowledge, there is not a good health insurance plan for fulltime RVers. A big problem with most health insurance is they require you be in one state most of the time. For some people keeping a home base that is not a big issue, but for those of us with no ties it is more complicated. Sue and I are not going to get coverage in our "home" state of South Dakota because we would never be there to see a primary care doctor.

Instead we are, as some fulltimer friends of ours put it, using the ostrage policy.  We put our heads in the sand and ignore the problem. This is a short term solution only viable since we are relatively young, in good health, and in denial about our own mortality. But we know having no health insurance is not an option for a lot of people out there.

There are countless options of HMO's and Blue Cross Blue Shield that have a national footprint. Look online for the latest options. A good article on insurance needs that covers health options better than I could can be found at RV Dreams, run by Howard and Linda Payne (no relation).

If you can't make your way through the maze of red tape by yourself, make sure to consult your insurance agent, but be clear on your changing needs. If you are on Medicare or Medicaid, and there are plenty of fulltimers who are, make sure to factor that in your decision if you are changing home states.