Please Tell Me if My Insurance Company is Being Honest??

[papasmurf]

Hi All,
I have a policy on an rv and when I purchased the policy 5 years ago I requested the the rv be covered for the purchase price of 62k. My policy says actual cash value unless otherwise stated and it shows the 62k under the covered rv. Well I had an accident and they( aaa ins) determined total loss and told me actual cash value is all they will pay because it may have been worth 62k new but not now, and that my stated value is incorrect, so actual cash value or else.
So the 62000 dollar question is are they treating me right? do I have any recourse?
Thanks

 

[djs]

RV's can be funny things to insure, there are different style policies and I'm not familiar with the AAA policy, and I assume it varies in different states / operating territories, so my apologies for not having a specific answer.

In general, unless you get into the world of classic/restored cars, policies are actual cash value. So yes, 5 years ago, you had a policy that would cover you for the actual purchase price, but as the value of the RV diminishes, so does the maximum payout from the policy.

Without doing this, it creates a moral hazard for the insurance company. People would actually go out and crash their RV every 5-6 years to simply go get a new one. Yes, this would happen, not by everyone, but by enough people it would make RV insurance unaffordable.

Your recourse is to show the proposed settlement is low and that the RV was worth more than what they valued it at. Of course, this assumes they didn't propose a correct settlement.

Dan

 

[Sales71]

Most policies are on a acv at time of accident. One thing you can do is try to convince the claim adjuster that your RV is worth more than he stated.

You can get listing from similar RV for sale with same milage and condition...

Good Luck

 

[djs]

Sales - I don't want to pretend to be an expert on RV policies, but I assume some policies will cover full replacement cost for the first year or so, similar to some auto policies.

I mention this because I think this is what the OP asked for and it may be that he got exactly what he asked for without realizing that there is a time limit on the full replacement cost coverage.

I haven't had to many RV claims, outside of towing and minor stuff. People tend to drive them pretty gently.

Dan