We Albertans are proud of our beautiful summers and many of us love to enjoy the nice weather travelling around using a practical (and comfortable) RV. But there are only so many weeks in a summer and an extremely limited amount of vacation days. That leads many to wonder if the expense of owning an RV is worth it … unless, of course, there is the chance to potentially make some extra cash.
Across Alberta, peer-to-peer RV sharing has become a common side hustle. But before you hand over your keys to a stranger eager to cruise Alberta’s highways, it’s important to understand how RV insurance factors into the equation.
The legalities of personal versus commercial use for your RV
In Alberta, RVs are classified as motor vehicles, which means they are subject to the province’s Standard Automobile Policy.
Towable trailers (or fifth wheels) do not have engines, and so are not classified as motor vehicles. They therefore do not need motor vehicle insurance, but should be insured under your property insurance policy.
Under a standard personal RV insurance policy, commercial renting is strictly forbidden. This works the exact same way as regular vehicles. If you rent out your RV casually on a handshake deal or via a classified site like Kijiji, your personal insurance company will almost certainly void your coverage. If your renter rear-ends someone on Highway 1, the personal financial liability costs would be astronomic.
To rent your RV legally and safely, you have two primary paths:
- The commercial path: You could choose to purchase a commercial vehicle insurance plan, however this can be an expensive option and generally only makes sense if you own a number of RVs and rent them out as a full-time business.
- The peer-to-peer path: Listing your RV on an approved RV-sharing platform is the path 95% of casual owners take. Platforms like RVezy and Outdoorsy partner with major insurance providers such as Aviva Canada, one of the providers we partner with at Lane’s Insurance, to offer “episodic” commercial insurance coverage.
How peer-to-peer insurance works in Alberta
When your motorhome is parked in your driveway or when you are using it for your own family vacation, your standard personal RV insurance policy is active. The moment an approved renter signs the digital key exchange and drives away, your personal policy steps into the background, and the platform’s commercial policy takes over.
These platform-provided policies are robust and typically offer:
- $2 million to $5 million in third-party liability protection.
- Collision and comprehensive coverage against physical damage, fire, theft, vandalism, and extreme Alberta weather events like sudden hail storms.
- 24/7 roadside assistance tailored for large RVs and that covers towing, mobile mechanics, and tire changes.
Peer-to-peer RV sharing platforms are a great option, but it is very important that you let your personal insurance provider know that is your plan. Some Alberta insurers do not allow peer-to-peer renting at all. Check with your broker to see if you need an endorsement such as Aviva’s Rental Network Sharing Endorsement to keep your personal policy valid during the off-days.
Vehicle eligibility and limitations
Not every motorhome can be rented out. To qualify for platform insurance in Canada, your vehicle must meet strict criteria:
- Age limits: Drivable motorhomes generally must be under 20 years old to be listed.
- Value limits: Platforms typically cap physical damage payouts for Canadian motorhomes around $200,000 CAD.
- Registration: The motorhome must be actively registered and personally insured within Alberta.
Risks of rental wear and tear
While the financial returns can easily cover your annual maintenance, storage fees, and financing costs, renting out a motorhome comes with special risks. Unlike a regular rental car, an RV is a moving house with complex systems (black water tanks, slide-outs, propane lines, and awnings).
To protect your investment, implement a strict risk-mitigation strategy:
- Conduct a thorough orientation: Renters — especially those new to RVing — cause damage simply because they don’t know how to operate the vehicle. Spend at least 45 minutes walking them through how to extend the slide-outs, dump the tanks, and properly retract the awning before they leave. Videos and printed tips are key.
- Take extensive photo documentation: You must take detailed, time-stamped photos of the interior and exterior within 24 hours of departure and return. If a renter scrapes the fiberglass shell of your RV against a tree at a campsite, you need clear photographic proof to successfully claim the security deposit or file an insurance claim.
- Screen your drivers: Use the platform’s tools to review renter profiles, histories, and verified DMV background checks. You always retain the final right of refusal if a renter does not feel like a good match for your rig.
Basics of RV insurance
Navigating RV insurance involves two primary decisions: choosing your liability limits and selecting your coverage type.
1. Third-party liability
In Alberta, carrying a minimum of $200,000 in third-party liability and accident benefits is legally mandatory. This covers medical payments, disability income, and death benefits. However, because liability protects you from paying out-of-pocket for property damage, injury, or legal fees after an accident, the vast majority of drivers opt for $1,000,000 or more in coverage — especially for higher-value motorhomes.
2. Standard versus Comprehensive coverage
Your second choice dictates how your vehicle is valued if it is totalled. There are two structures:
- Actual Cash Value (ACV): ACV is the least expensive option, however it only reimburses you for the current market value of your RV at the time of the claim and accounts for depreciation.
- Replacement Cost (RC): Typically tied to comprehensive policies, RC allows you to set a fixed upper limit for reimbursement. Because vehicles depreciate rapidly, comprehensive coverage with a replacement cost structure is highly recommended.
A comprehensive policy offers robust protection, generally providing:
- Physical protection covering the vehicle, its contents (up to a specified limit), and built-in equipment like solar panels, appliances, and generators.
- Emergency expenses to reimburse for unexpected costs incurred after a loss, such as hotel stays, food, and rental vehicles.
- Full-timer coverage is protection that functions like standard homeowners’ insurance for those who have sold their traditional homes to live in their RV full-time.
The Lane’s Insurance advantage
Lane’s Insurance is a client-oriented, full-service insurance brokerage that leverages our strong relationships with insurance providers to offer customers unbeatable rates on all their insurance needs. We are locally owned and operated, and we offer every type of insurance you’ll ever need, including everything from RV insurance to home insurance, auto insurance, commercial insurance, and much more.
We are happy to offer plenty of advice and resources to make the right choice for your recreational insurance coverage. Please don’t hesitate to contact us at Lane’s Insurance to see if we can help improve your coverage and lower your costs.
