Many people would wonder which type of motorhome insurance would be the cheapest one. If you do not use your motorhome frequently but you still need an insurance, you can choose the TPO, third-party only, insurance, which is the cheapest type of insurance that offers the minimum coverage for your car. However, what exactly is this TPO insurance?
According to the definition, third-party insurance is purchased for protection against the claims of another, and this is the most common types of automobile insurance. TPO offers coverage against claims of damages and losses incurred by a driver who is not the insured, the principal, and is therefore not covered under the insurance policy. In fact, the drive who caused damages is the third party.
TPO coverage includes two types. Firstly, bodily injury liability covers costs resulting from injuries to a person. These injuries’ costs could include expenses like hospital care, lost wages, and pain and suffering due to the accident. Secondly, property damage liability covers costs resulting from damages to or loss of property, such as the payment to replacing gears and glass, as well as compensation for loss of use of a structure.
Overall, TPO usually only covers a loss that is caused by a third party. That is, you need to suffer from an accident in order to receive TPO coverage. If there is not such a third party, you cannot receive your insurance. For example, if there is a natural disaster that destroys your motorhome, your motorhome cannot be insured since the third party does not exist. Also, if you suffer from a fire or a flood, you cannot receive any compensation as well.
TPO is the cheapest type of motorhome insurance, but it’s also the type that compensates less and only covers a small range of accidents. Therefore, it’s always better to be cautious when choosing a motorhome insurance.