Insurance!

[Hammerhead]

My insurance agent initially insured my Shorty with personal liability insurance. Now that the company, AIC has reviewed the policy they are not going to renew in May and have told me I need commercial insurance. My question to them would be, "Do regular privately owned RVs require commercial insurance as well?"
Maybe it's due to the size and weight of the bus? I don't know. This is my first foray into bus conversions!

[Robin97396]

There seems to be some discrimination toward self built motorhomes, but at the same time everyone has seen the buses with wood cabins and VW vans built on top of them. It's legal to build anything you want, but insurers don't have to insure them.

I was told the commercial policy was because it's a commercial size vehicle. Apparently they've also had trouble with people buying buses that have never driven anything of that length before causing accidents. Expensive accidents.

I do not understand why Progressive is the primary one selling these commercial policies for private use. Most other insurers will cancel the policy after several weeks without any real explanation. Progressive was my only choice, but at a fair price in my opinion.

[Hammerhead]

I had a feeling the commercial insurance requirement was due to size. Mine's only 20' long!

[Robin97396]

I've had Datsuns longer than that. So your bus is a cutaway body style? I'd definitely try to call that a van based on the chassi manufacturer.

This commercial insurance issue seems to be a relatively new thing. It doesn't make sense to me that in a free enterprise market Progressive is the one that does bus insurance. That makes me think of Progressive like Walmart.

[Hammerhead]

It's a bus body built on a GMC Savanna van cutaway. That's why the little girl at my insurance agency wrote it up as a van...

[Robin97396]

So it was the VIN that caused the problem at the insurance?

[Hammerhead]

Originally Posted by Robin97396

So it was the VIN that caused the problem at the insurance?

That's what I'm thinking but, it seems the VIN would bring up the van part!

[bry899]

I have Allstate for my cars, when I called to add My "Van" (shuttle bus) last wednesday the broker said the VIN was invalid. I then told him that it was a bus but now there are no seats so it is just a Cargo Van. He then told me he had to personally call an underwriter to get an override. The underwriter didn't approve, & my broker said that the VIN is basicly flagged in their system. He went on to explain that a bus is a major liability as for the amount of passengers it holds. So their policy is no bus vehicles, even if the seats were removed. I then got a commercial policy through progressive.

[Hammerhead]

How does the commercial insurance compare price wise to your personal auto insurance?

[sutphinins]

Q&A time?

Commercial insurance is generally more expensive that personal auto, but also has higher liability limits. However, you cannot usually get a commercial policy with a personal use only vehicle.

In VA, Progressive is still not doing buses being converted, or as RVs. They'll consider commercial if there is a commercial use and depending on the # of passengers. National General is still doing converted RVs on a case by case basis, but do not have the surcharge available yet for buses being converted.

I called and checked with both of them while writing this post.

The VIN is going to out, because an RV will generally show as an RV. The bus is going to show as a bus or truck chassis of some kind. The companies will go by the VIN first, and then the agent second, if at all.

Here's the thing: if you don't tell your agent the full truth, you are putting yourself at risk. Every policy we do in VA has a question or statement about misrepresentation. Even if it's unintentional it could leave you without insurance and a big claim.

There is also a question about have you ever been cancelled for misrepresentation. If that's a yes, it's usually an automatic decline.

I've got an example. We insured someone that had a few small stores, and without letting us know they stuck some of those magnetic signs on one of their cars. They had an accident in a parking lot, and their carrier non-renewed the policy. Fortunately for them the claim was paid.

[kjelenfy]

Progressive won't insure my short bus in Maine! at my wits end.

[Robin97396]

Are you going through a Progressive agent or an independent agent? You'll need to go through an independent agent. Remember the catch phrase, a commercial policy for private use. Progressive farmed my policy out to some trucking insurance company as the underwriter I guess.
Are you having problems because it's a self built motorhome?

[bry899]

Originally Posted by Hammerhead

How does the commercial insurance compare price wise to your personal auto insurance?

The commercial rate is expensive, around $125 per month, I am using the van for carpentry work. It is not my main vehicle so this is fine for now, The use will actually be very limited. Without the seats there is a lot more room than my pickup. Once I start the conversion the van will likely sit idle til I am finished. I was also told that when I finish the conversion & get the necessary change from DMV the insurance will be a lot cheaper.

[bry899]

Originally Posted by kjelenfy

Progressive won't insure my short bus in Maine! at my wits end.

Like Robin Said you have to go through a broker, the 1800 people don't know how to write these policies. or you can try AIS, they were a little higher than the broker but with the same progressive commercial policy

[MarkyDee]

This seems like a good place to post my experience with insurance so far. Please be aware that I haven't bought a bus to convert yet - I'm trying to make sure I can get it home before I buy.

Indiana

I have Auto and Homeowners through State Farm. My agent told me that State Farm will cover a conversion - but only once its converted, so no insurance in driving the thing home. I asked him what the difference is between the converted bus and the original bus if the vehicle is already titled as an RV? He simply said "you're splitting hairs". I said "from my perspective its State Farm that is splitting hairs." He had no answer except "State Farm won't insure you driving it home." I even used the magic words "commercial policy for private use" - yea, didn't work even one little bit.

So, stay away from State Farm. Period.

But in an attempt to keep me as a "customer" he "asked around" a few of his insurance buddies to see if anyone would insure my trip home. So far no takers. I'm betting there won't be.

So now I'm trying to decide how to proceed. The AIS Insurance website wants a make/model to even proceed with anything. I can't seem to find an "independent" insurance broker in Indiana to see what they can get. The best rate I can find in delivering is about $3/mi - OUCH!

So, anyone know of an "independent" Indiana insurance broker I can talk to to find out what insurance company will deliver me a policy on short notice so I can drive a bus home?

[Robin97396]

Those are usually the old mom and pop insurance agents often using an old house as an office. They contact like 40 insurance companies to find one for you.

[Scooternj]

Originally Posted by MarkyDee

So, anyone know of an "independent" Indiana insurance broker I can talk to to find out what insurance company will deliver me a policy on short notice so I can drive a bus home?

Try looking through the Trusted Choice website for an agent local to you.

[Hammerhead]

My insurance company, AIC, has agreed to insure my bus since I'm using it for a construction vehicle. The agent mistakenly filed it as a Savanna van.
End result is $200 more per year than my personal coverage (I now have 3 conveyances with them)
Not ideal but it's probably better to have the commercial coverage.

For those of you with camping and/or living in purposes you may still have to get commercial coverage based solely on how many people you can carry around!

[MarkyDee]

Originally Posted by Scooternj

Try looking through the Trusted Choice website for an agent local to you.

So far all of them want me to switch ALL of my insurance to them before they will even consider covering a bus to drive it home - even if the bus is titled as an RV.



First time I'm going to say this, but insurance sucks. There, I said it.

[mjfreespirit]

The other day I called Good Sam, and they will and have insured School Bus, Motorcoach and other bus conversions, however it is subject to a more thorough underwriting process, including detailed pictures of your completed build.

I found that the ONLY option to insure your bus PRIOR to converting is a commercial policy, and that's challenging to say the least. However, my experience with law enforcement here in the Portland, Ore area is that they understand this and use much appreciated discretion. I've had some nice encounters with police not having a plate on my bus and moving it from point A to B.

I would find a good commercial insurance agent that specializes in Carnival Amusement insurance.

Companies I know to issue policies to "high risk" groups are:
-Allied Specialty Insurance INC and HAAS & Wilkerson Insurance.
Both of these were used at a few of the carnivals I worked for. Note, that carnivals insure highly specialized and customized equipment. Allied is the most used. Check them out.

Good luck on your journey.