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Does my touring caravan insurance cover family and friends?

Many of us are willing to lend things to friends and family – sometimes including our touring caravan.Yet if you do so, you may need to be aware that you might be jeopardising your insurance cover.

Lending a caravan

As a general principle, insurance policies of any type are typically written for the policyholder and possibly their immediate family. By immediate family, is typically meant husband/wife/partner and possibly children.

In the case of touring caravan insurance, some policies may cover use of the caravan by the policyholder and such very close family members.

However, if you decide to lend your caravan to siblings, uncles, aunts, cousins and pals, things may be very different. Your insurance just might become invalid.

Some policies may allow the lending of your caravan to certain specified family members but others may not. Even those that do may vary in terms of what they define as being close family members.

This is not something that it pays to take chances with and if you are considering lending your caravan to anyone it might be advisable to be sure of what the insurance implications are. We would be glad to offer you our advice as to what your policy covers in this respect.

Income – a game changer

The above discussion is based largely around the concept that any lending of your caravan is a genuine loan and not a commercial transaction.

For example, even policies that cover the use of the caravan by other family members may only do so on the understanding that no money has changed hands covering the loan. If you do receive payment from the family member concerned, then you may well be again invalidating your insurance cover, as it typically doesn’t provide protection for commercial transactions.

If the person concerned offers you a favour in return then that may be acceptable and not a serious issue but if cash changes hands, things might become significantly different and you may need an entirely different form of caravan insurance.

Being careful

There are numerous potential variations on the theme of borrowing or lending a caravan and on what basis; therefore, it isn’t really possible to give a complete description of all conceivable options.

All that can be said is before you make promises to family of friends that they can use your caravan, you may wish to invest some time in carefully studying what that might mean for your insurance protection.