Originally Posted by sewingcybermom
ahhh....this is so overwhelming. I know NOTHING about insurance. All I want is to be covered if an accident causes damage or injury to OTHER people. I can replace my camper, but not my house or a life. Our AAA rep is emailing our quote with coverage so we can make a decision with everything in writing.
One quick question that we are going back and forth on. The Nada value of my camper seems to be between 18-21K. However, we got the deal of the century on it and only paid 14K. Insurance wants to insure it for what we Paid. Is that correct? I understand that to use the book value, we would suffer depreciation. Insuring for purchased value avoids that?
Generally your insurance policy will pay you Actual cash value (ACV) for your unit. So if the unit is indeed worth 20K, then the premiums will reflect coverage for a 20K item. The deal you got may not be available when it comes time to replace your unit if it is a total loss.
Some policies may pay you full replacement which is also insurance code speak for ACV as it does not mean replacing a 2000 model year with a 2016 model year if your 2000 model is destroyed.
Insurance can be confusing and you need to sit down with a good insurance agent to evaluate your overall risk profile. Everyone is different. this is not unlike financial planning. It is customized for your particular situation.