One of the first questions many new caravan owners ask is, “How much will caravan insurance cost me?”
Unfortunately, there is no simple answer. Two people can own very similar caravans and still receive different quotations. That’s because insurers look at a range of factors when deciding how much risk they are taking on.
A small touring caravan that spends most of the year in a secure storage compound may attract a different premium from a brand-new twin-axle model that travels around the country every weekend.
If you’ve been comparing caravan insurance quotes and wondering why the prices vary so much, some of the following factors may help explain why.
The value of your caravan
As a general rule, a caravan that costs more to repair or replace is likely to cost more to insure.
A nearly new touring caravan packed with modern features will usually represent a bigger financial risk to an insurer than an older model with a lower market value.
It is also important to think about any extras you have added. Motor movers, solar panels, upgraded security devices and specialist awnings can all add value to your caravan and typically may need to be declared to your insurer.
Where the caravan is kept
Ask any caravan insurer what information they want first and storage is likely to feature near the top of the list.
A caravan stored behind locked gates in an approved storage facility may present a different level of risk from one left on a driveway or in an unsecured location.
Insurers know from experience that theft and accidental damage are more common in some situations than others. As a result, where your caravan spends most of its time when not in use can have a noticeable impact on the premium you are quoted.
Depending on your circumstances and the policy selected, at Cover4Caravans, we may offer discounts up to 20% off your annual premium for caravans stored at a CaSSOA-approved site.
How often you use it
A caravan that is taken away for a handful of weekends each year is exposed to different risks from one that is constantly on the move.
The more frequently a caravan is used, the greater the chance of accidental damage, theft or incidents occurring while travelling. Insurers may therefore ask questions about how often you tour, where you travel and how long your trips typically last.
For many owners, that flexibility and freedom is exactly why they bought a caravan in the first place. It simply means insurers need a clearer picture of how the caravan is being used.
Your claims history
As with many forms of insurance, your previous claims history may also be taken into account when insurers assess risk.
Making a claim does not automatically mean your future premiums will increase. However, insurers may consider previous losses when calculating the cost of cover.
If you have enjoyed several years without making a claim, some insurers may view this differently from someone who has experienced multiple claims in a relatively short period.
The level of cover selected
The cost of caravan insurance may also be influenced by the level of cover you choose.
For example, insurers may offer different levels of protection for accidental damage, awnings, contents, personal possessions, public liability and other optional benefits. The wider the scope of cover selected, the higher the premium may be.
It is important to make sure that any cover arranged reflects your needs and circumstances rather than focusing solely on price.
Where you use your caravan
Insurers may also ask questions about where the caravan is used and how far it typically travels.
A caravan that remains on a seasonal pitch for much of the year may present different risks from one that regularly tours the UK. Some insurers may also offer cover for European travel, which could affect the premium charged.
Why do caravan insurance quotes vary?
Many caravan owners are surprised to receive different quotations from different insurers.
This is because each insurer has its own underwriting approach and assessment of risk. Factors such as the caravan’s value, where it is stored, the security measures in place, how often it is used and the cover selected may all be weighed differently.
As a result, there is no standard caravan insurance premium that applies to every owner.
The importance of accurate information
When requesting a quotation, it is important to provide accurate and up-to-date information.
Details such as the caravan’s value, storage arrangements, security devices and intended use all help insurers assess risk and determine the terms of cover that may be available.
Providing incomplete or inaccurate information could affect the cover offered or any future claim.
Further reading: How much is caravan insurance?
Disclaimer: This article is intended as a general overview only. Insurance premiums, cover, exclusions and policy conditions vary between insurers and individual circumstances. Always check the policy documentation carefully and consider seeking guidance from an insurance broker or insurer before arranging cover.