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Navigating RV F&I Coverage Differences

Navigating the complexities of Finance & Insurance (F&I) coverage is key when looking to protect a vehicle investment, be it a car or a recreational vehicle (RV). Given the financial commitments involved, grasping how coverage needs differ between RVs and cars is important. These differences not only reflect the distinct aspects of ownership and usage but also the unique F&I opportunities each type of vehicle presents.

The Basics of Prosidium F&I Coverage
For Auto:

F&I in the automotive sector primarily includes extended warranties, GAP (Guaranteed Asset Protection) insurance, and vehicle service contracts. These products are designed to protect buyers from unforeseen expenses due to repairs, accidents, or the depreciation of the vehicle over time.

For RV:

Coverage for RVs typically includes these same categories of coverage but more comprehensive, reflecting the dual nature of RVs as both vehicles and living spaces. It encompasses protection for the living spaces and addresses the specialized needs of RV living and driving. This broader scope combines elements of vehicle and home coverage to mitigate a wider range of risks. Prosidium’s specific products tailored for RVs include:

RV Total Care: Coverage for costs of repairs due to common road hazards.

RV Maximum Shield: Protection against certain internal/external damages and wear.

RV Safety Shield: Product covering windshield protection and repairs.

RV Theft Shield: Theft protection system guarding against theft and unrecovered total loss of the RV.

Prosidium Care: Specialized mechanical coverage for towable and motor homes.

RV GAP: Covers the gap between the RV’s market value and loan amount in the event of a total loss.

Understanding RV Coverage Variations and Market Dynamics

RV F&I coverage can be categorized based on whether the RV is towable or motorized, with specific policies for the systems and components found in RVs. This can include coverage for engines, electrical systems, appliances, slide-out rooms, generators, kitchen centers, and more. While both auto and RV policies often offer roadside assistance, RV 24-hour roadside can extend to additional services like service calls, RV technical assistance, and concierge service, which are included in all Prosidium RV plans.

Auto coverage typically accounts for daily use, with premiums and policies structured around regular commuting patterns. On the other hand, RV coverage considers the sporadic or seasonal use of these vehicles, leading to adjusted premiums and coverages.

The initial years of the pandemic saw a significant surge in RV demand, with total RV shipments increasing by nearly 40% from 2020 to 2021. Although this demand has since declined, F&I products have emerged as a pivotal strategy for RV dealers seeking to navigate the market’s ebb and flow.

The Strategic Value of RV F&I Products

Since RVs are investments that are used over a long period of time, RV F&I solutions can help maximize their value and longevity, foster customer loyalty by delivering long-term benefits, and generate consistent revenue streams for dealerships, all while benefiting actual customers. Rising consumer acceptance rates are reflective of a strategy that involves educating customers and employees about the benefits of protecting RVs with F&I products.

Why F&I Knowledge is Key

Despite the automotive industry’s experience with higher inventory volumes and F&I product sales, the RV sector has significant growth potential. By emphasizing early consumer education on the value of protection programs, RV dealers can bridge the knowledge gap. Despite facing market challenges, informed F&I product offerings and robust consumer education can guide dealers through uncertain times.

The right F&I coverage ensures your RV is safeguarded against unforeseen circumstances. The evolving dynamics of consumer acceptance and dealership strategies in the F&I landscape highlight the need for continuous education and consulting with finance and insurance professionals for personalized advice.

Prosidium Warranty & Capital is a customer-centric company that takes pride in our automotive and RV F&I products and wealth-building programs for dealers, agents, and contract holders all over the nation. Our full line of F&I products for auto, RV, and powersports includes exclusive and comprehensive mechanical service contracts, lifetime and limited warranty programs, GAP, ancillary plans, reinsurance programs, dealer development, and compliance training. Prosidium Warranty & Capital has its head office north of Seattle in Burlington, WA.

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