Do I need caravan insurance in the UK? | moneyfacts.co.uk

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How to compare caravan insurance

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At a glance

  • Caravan insurance isn’t a legal requirement – unless you’ve got a motorhome – but it makes sound financial sense to protect your investment.
  • You’ll be able to choose between varying levels of cover depending on your needs and budget, ranging from basic liability cover to protection against theft and damage of the caravan itself and any possessions within it.
  • It’s a specialist type of insurance which means careful searching of the market is key to find the ideal policy for your requirements.

If you’re embracing the great British staycation and are itching to get out and explore on your own terms, a caravan may have crossed your mind. But there’s more to it than finding your ideal model – alongside the financial implications of buying the caravan itself, you need to consider the long-term costs involved too, and insurance should be at the top of the agenda. Here, we take a look at everything you need to know about comparing caravan insurance, leaving you free to get out on a well-earned break.

What is caravan insurance?

Caravan insurance offers financial protection against any loss or damage to your caravan, much in the same way that other forms of insurance operate. There’ll be different policy options depending on the type of caravan you own – typically they’re broken down into touring caravans, static caravans and trailer tents/folding campers, as well as policies for motorhomes.

Do I need caravan insurance?

It depends on your outlook. You’re not legally required to have insurance for a touring or static caravan, and in the case of the former, you may be covered by your car insurance (though you’ll need to let your insurer know that you’ll be towing a caravan). However, this will only cover the cost of any damage caused to a third party, not damage to your own caravan, and considering how expensive they can be, it’s wise to consider insuring your investment.

It’s a similar story when it comes to static caravans, where insurance isn’t technically necessary, but if you fail to have a policy you’ve got no financial fallback should your caravan be damaged or its contents stolen. Then there’s the fact that many caravan parks will expect you to have a minimum level of liability insurance, so while not a legal requirement, it’s certainly recommended.

The caveat here is when it comes to motorhome insurance, in which case you’re legally obliged to obtain suitable cover. This is for the simple reason that it’s a road vehicle as much as a holiday home and, as such, needs to meet the same legal requirements as other road users.

What’s covered in caravan insurance?

This depends on the type of caravan insurance policy you have and the level of cover, but as a general rule, you should be able to find cover for any or all of the following:

  • Third party liability insurance, which covers the cost of any damage your caravan causes to a third party, or any injury to a member of the public.
  • Theft.
    • Internal and external damage (perhaps as a result of fire, criminal activity, severe weather or an accident such as a leak).
  • Contents cover, including caravan equipment, though this may be an optional extra (your home insurance may also cover some possessions in your caravan, depending on the details of your policy).
  • Trips abroad, though again, this will depend on the level of cover you’ve chosen.

Essentially, a policy should be able to cover your caravan should it be damaged, destroyed or stolen, with optional extras often available.

However, it’s slightly different in the case of motorhome insurance, where cover will be structured similarly to car insurance. This means you can normally choose between three levels of cover (third party, third party fire and theft, and fully comprehensive), though again, various add-ons should be available.

 

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What isn’t covered in caravan insurance?

Again, this will depend on the wording of your policy, but typically speaking, most caravan insurance won’t cover the following:

  • Usual wear and tear
  • Pest or vermin infestation
  • Theft or damage should you fail to have taken appropriate security precautions (such as failing to lock windows/doors)
  • Any damage as a result of using the caravan for a permanent residence or business purposes.

You should always check the exclusions of any policy before you make your decision.

What does it cost to insure a caravan?

This will depend on the type of policy you choose and the company you buy it from, together with the optional extras you’re looking to include and the make and model of the caravan itself, with a lot of different considerations going into an insurance quote.

The level of excess will also be a factor, as will the type of cover you opt for: you’ll typically be able to choose between new for old cover (where your caravan and any possessions or equipment will be replaced with brand new options if they’re stolen or damaged beyond repair) and market value cover (which will only compensate you for the value of the caravan at the time of the claim). The latter will be far more affordable, though it of course means you won’t get as big a payout should you need to make a claim, which could make it more difficult to replace your caravan if it’s depreciated heavily from when you bought it.

How can I get cheap caravan insurance?

Getting a cheaper caravan insurance policy may be possible by tweaking the level of cover you opt for – such as choosing market value cover and/or sticking to a basic level of liability insurance – or perhaps raising the excess, though it’s important to make sure that you’ll still be sufficiently protected, less you run the risk of being financially out of pocket should you need to make a claim. The other option is seeing if you’ve already got some form of cover through your car or home insurance policy, though again, this may not be sufficient. Instead, the best way to get cheap caravan insurance is to compare the options thoroughly, and our list of featured caravan insurance providers could be a great place to start.

How can I compare caravan insurance?

When comparing caravan insurance, it’s important to consider all aspects of the policy, rather than focusing on price alone. This ensures you’ll have the level of cover necessary to keep your finances in check should you need to make a claim, and if you can strike the right balance between cost and coverage, you’ve got the ideal combination. Bear in mind that because it’s a specialist policy, you may need to head to several different providers to effectively gauge the market, though this level of effort should pay off in the long run.

 

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