I recently went through the process of reclassifying my new Sprinter van conversion as a motorhome at the DMV in California. When you buy an empty cargo van, the VIN # is generally classified as a commercial cargo van. Once you convert the cargo van to a living space, the value of what you put into the conversion is not covered under the original insurance policy for the cargo van. That policy basically only covers the vehicle shell and engine block. Therefore, the process to reclassify your vehicle is very important so you can get insurance coverage for the full value of the vehicle with the conversion and all the upgrades. There are a lot of things that the DMV website doesn't explain well, so I figured it would be good to give you all a step-by-step process on how to do this.
1) I recommend reading this overview on the DMV website, especially the part about Camper Recreational Vehicle Definitions, which can be quite helpful.
2) Download form REG 256A on the DMV website. You fill out the top section (license plate, VIN, year/make), and then Section E. Do not fill out Sections A-D as they do not apply to this. Then you answer which of the three conversion choices if applicable to you. I selected the third option, ‘this vehicle was permanently modified,’ checked ‘converted to motorhome,’ and entered the modification completion date. Then you enter the cost of the complete vehicle before it was modified (I entered what I paid for the new Sprinter), the cost of changes, including labor (I entered my whole build cost), and the total value of the vehicle now (cost of vehicle, all the upgrades, all the labor, etc.). Lastly, you sign, date, and write in your phone number.
3) Make sure you have your Title! If you are financing your van, you may not have your title because the lien holder has it. If that is the case, you will need to contact your lien holder and have them mail the title to the local DMV office you will be going to. Sometimes this can take a few weeks or even a month. In my case Mercedes Benz said they mailed it the day after I requested it, but the DMV didn’t get it until a month later. I’m assuming that is because they are short staffed and it takes awhile for all the mail to get sorted.
4) Bring your Title, Registration, filled-out Form REG 256A, and copies of all the build receipts to the DMV with your converted van and go to their Vehicle Inspection lane. This is usually next to the drivers test lane. Someone from the DMV will come out and you can tell them you converted the van and want it reclassified as a motorhome and give them your documents. They will check out the conversion and check your mileage. Then they hand you another form that shows inspection was done and conversion confirmed.
5) Go inside the DMV with all the paperwork and wait to get a number. Once you get called, you give the DMV employee all your paperwork and explain you are there to reclassify your vehicle from a commercial cargo van to an automobile motorhome. Don’t be surprised if they ask for guidance from another DMV clerk as this is not an every day request. But don’t worry, they will reclassify your vehicle VIN # in their system, even if this takes longer than you expect. Since you are increasing the value of your van, you will need to pay more registration fees because those fees are based on the vehicle's total value. If you just renewed your registration, you will only have to pay the difference, but if your registration is about to expire, you will have to pay the full amount. Until recently, the DMV only accepts cash, check, or debit card as payment, but now they also take credit cards. I would bring your checkbook just in case though as that might vary by DMV office. There is a fee for using debit or credit, which I believe is 2.75% of the amount, so if you are looking to save money, bring cash or check. You will be issued a new registration and the process with the DMV is now complete.
6) Next thing you should do is call your van insurance. They will need to change or update your van insurance to reflect that it is a motorhome, which is very different from being a cargo van. Many insurance companies will not insure a van conversion. For example, Progressive and AAA in California will not insure it (based on my phone calls with them in August 2020). State Farm will insure a van conversion and my rep completely understood what that entailed so that everything is fully covered in case of an accident. They do require build receipts as well as build photos as proof of the conversion. I've also heard that Allstate, and USAA will insure van conversions, so I also recommend getting quotes from them as well. Make sure you select enough coverage in bodily injury, liability, uninsured motorist, etc., so you are financially covered in case of a tragic accident. Van conversions do a lot more damage than a regular car due to their weight, so you want to keep that in mind when selecting your liability ranges. Also keep in mind your wealth/assets as someone could go after you for damages. Umbrella insurance policies could also come into play. Talk to your agent and make sure you get what you need so you are covered in every way.
I hope this break down is helpful and simplifies the whole process for you! If you are looking for some more information on insurance, I highly recommend Bearfoot Theory’s module on choosing an RV insurance policy for vanlife, as well as R.O.W. with Mick and Chick's insurance blog posts, which are both very informative!
