When your RV sustains minor exterior damage that doesn't impact safety, a cash settlement offers a flexible compensation path. This option is designed for cosmetic issues where a professional garage repair may not be necessary or intended by the host. By choosing this route, you receive a monetary payment based on repair estimates while keeping your RV available for future bookings.

When to choose a cash settlement

Cash settlements are typically offered for insurance claims involving exterior damage that is purely cosmetic in nature. This includes issues like light scratches on outer panels or scuffs that do not affect the unit's structural integrity. If the damage doesn't require a professional shop to fix, this payout allows you to address the wear yourself.

How your payout is calculated

We calculate your settlement by starting with a professional repair estimate and then adjusting it for three specific factors.

• Depreciation on parts: We review the age and pre-existing condition of your RV to determine the current value of parts. The standard rate is 5% per year up to a maximum of 50%, though this is negotiable. We may adjust this if you have low mileage or if the damaged part was recently replaced.
• Adjusted labour rates: Professional estimates reflect high hourly rates for certified mechanics, which may not apply to minor exterior touch-ups. To account for this, we reduce the estimated labour cost by 50% to provide fair compensation for your time.
• Exclusion of taxes: Taxes are not included in a cash-out settlement because there is no guarantee a business will do the work. We only include taxes in the final payment if you provide proof that a professional completed the repairs.

Professional repair vs. cash-out

You have the option to complete repairs through a professional shop if you want the exterior fully restored. In these cases, you can claim the full labour costs and taxes, though part depreciation still applies to the claim. Remember that most cosmetic exterior damage, such as minor panel scratches, does not require a full professional replacement to stay functional.
 

For any questions or concerns regarding cash settlements, please contact your assigned claims advisor.