Owning a caravan gives you the freedom to travel and stay in numerous places across the country on your own terms. But buying your own caravan can be a big investment and it’s well-advised to protect it with insurance. Depending on the caravan insurance policy, it may provide cover for a variety of different situations ranging from accidents on the road or damage sustained while parked at home. Below we take a look at some of the options when it comes to insurance for your caravan and what to look for.
Types of Caravan Insurance
Caravan insurance is a stand-alone financial product that is typically used to provide cover for your caravan while it is travelling on the road, when it is on-site at a caravan park, and when it is not being used for a certain period of time. Some insurers also offer cover for a trailer, camper trailer or horse float under a caravan insurance policy.
The two main types of caravan insurance policies are comprehensive and third party. The first option covers damage or loss of the caravan and property inside it, as well as to other people’s property. Third party policies only cover damage to other people or someone else’s property where you are at fault. Either policy can also cover other incidents as an add-on expense depending on the insurer.
What Can Caravan Insurance Cover?
As mentioned, coverage will vary depending on the policy and level of cover you choose, but in general, it may provide some financial protection for loss or damage to your caravan caused by or arising from:
- Accidental damage
- Theft or attempted theft
- Storm and flood
- Vandalism or a malicious act by a third party
- Emergency repairs, accommodation, and transport.
- Food spoilage
- Contents up to a certain amount.
It typically won’t cover wear and tear, vermin, faulty design, pre-existing damage or any damage sustained by intentional misuse.
Tips When Looking for Caravan Insurance
Spend a decent amount of time shopping around widely for different insurance policies. Read the small print to compare features and don’t be afraid to tell an agent you’re shopping around. Ensure you get appropriate insurance for how you plan to use your caravan. The appropriate level of coverage will differ depending on whether you are covering a touring (or travelling), on-site or off-road caravan.
Before you take out caravan insurance, read the Product Disclosure Statement (PDS) of each policy thoroughly so you understand the terms and conditions involved, including benefits and exclusions, and any excesses that apply.
Factors that Affect the Cost of Caravan Insurance
Cheaper rarely means better when it comes to insurance. The cost of your caravan insurance will depend on a range of factors, including:
- Level of cover and extras: Comprehensive cover will usually carry a higher premium. If you choose to take out any optional extras, this will also add to your premium.
- Excess: The excess is the amount you agree to pay out-of-pocket when making a claim. If you choose a higher excess, this will tend to lower your premium.
- Sum insured: Agreed value is a fixed sum insured that you and your insurer choose for your caravan, whereas market value is based on the amount your caravan is worth at the time of the claim. Agreed value policies tend to carry a higher premium.
If you are buying caravan insurance from the same provider you use for other insurance policies, such as your car insurance, it could be worth checking to see if you are entitled to a multi-policy discount.