Making monthly payments for an RV loan is already an expensive affair, so it’s not surprising owners will sometimes try to limit their costs by avoiding expensive insurance. They might either reduce the insurance coverage they purchased when they took out the loan or drop it entirely. After all, trailers are usually covered under the truck’s insurance in an accident.

Or perhaps they just drop insurance in the winter when the RV is in storage, planning on picking it up again in the spring.

Besides opening up themselves to any number of problems that can arise when the trailer isn’t attached to the truck, may be in for a rude surprise when they open their monthly loan statement to find their payment increased by hundreds of dollars.

Sometimes we forget that, when we took out a vehicle loan, we promised the lender a certain level of insurance coverage. Insurance companies report changes back to the lender, and if you reduce your coverage below the minimum you agreed to, banks can take out their own insurance on the vehicle and charge you top dollar for it.

It’s called force-placed insurance, and it’s hundreds of dollars a month. It gets added to your statement and your payment increases. You might not even notice it immediately if you have auto-pay set up and you’re not someone who regularly checks your bank account. What’s worse, this insurance doesn’t even cover you. It just covers the bank in case something happens to the vehicle.

I’ve heard dozens of stories of people that have gone through exactly this. A few didn’t even drop their coverage—they just switched insurance companies.

When you switch, it’s important to proactively cancel your old one rather than simply stopping paying the bills. Otherwise, your former insurer may report you to your lender and the credit reporting agencies, all while continuing to bill you. Let your bank know about the policy change to make sure your bases are covered.

If you need to save money on your insurance coverage, shop around. Or call the insurance company and see what you can do. Sometimes you’ll get a reduced rate for garaging the vehicle for several months. Or you may be able to reduce certain areas of your coverage without going below the minimum required by your lender.