Insurance is essential for protecting your touring caravan on the road, whilst pitched, and in storage, but a robust policy doesn’t need to break the bank.
The key to capitalising on saving opportunities without compromising on cover is understanding how insurers calculate the cost of their policies. While each insurer will have its own unique formula, most will consider a range of similar factors to determine the ‘risk’ of your circumstances.
Here are six common factors your insurer might consider, with effective strategies for reducing perceived risk, and in turn, the cost of the policy.
Your caravan’s make, model, and age
A big determining factor for your overall ‘risk’ is the caravan you’re covering. Your insurer must calculate how costly or difficult that specific caravan would be to repair or replace in the event of a claim. Older caravans can be cheaper to insure due to their lower value compared with newer models, but a caravan that is particularly old may prove difficult to source new parts for, making it much more difficult to repair and therefore more expensive to insure.
If you’re in the market for a new caravan, consider a lighter or lower-value model; these caravans represent lower risk for insurers as they’re less likely to be targeted by thieves, are often cheaper to repair or replace, and generally cause less damage to other vehicles or property in an accident. Modern lightweight caravans still offer a well-equipped, comfortable experience and can be just as enjoyable for touring as larger, heavier models.
This option isn’t for everyone, especially if you’ve only recently purchased your current caravan, or require a larger model to accommodate your family. Balance cost considerations with your needs, as choosing a model that doesn’t suit your preferences or holiday style won’t be enjoyable, regardless of how much you save on your insurance policy.
Security features
Whether they’re factory-fitted or additional add-ons by yourself or a previous owner, the number of security features your caravan has will likely impact the cost of your insurance policy. Generally, the more difficult it is to break into or steal, the lower the price will be.
Consider adding the following security features to your caravan:
- Wheel clamps (to physically prevent the wheels from turning)
- A hitch lock (to stop unauthorised towing)
- Alarms (to provide immediate alerts if the caravan is tampered with)
- Immobilisers (to prevent movement even if your other security measures are bypassed)
- Tracker devices (to deter thieves, but also drastically increase the chance of recovery if your caravan is stolen)
Be sure to disclose all security measures when applying for a new insurance quote, as an insurer can only reduce your premium for the features that they know about.
Storing your caravan
Being left unattended for long periods, your caravan can become particularly vulnerable if not stored safely, increasing risk and, in turn, increasing insurance premiums. Wherever possible, store your caravan in a secure storage facility, ideally with rigorous security measures like perimeter fencing, controlled access, CCTV coverage, and proper lighting.
If you choose to store your caravan at home, you can enhance security by storing it in a locked garage or on a driveway behind locked gates. Install CCTV cameras that cover the caravan, ensure good lighting with motion sensors, and use ground anchors to secure the caravan in place. While you’re unlikely to receive as big of a discount compared to keeping your caravan in a dedicated storage facility, you may still see some savings from your additional security efforts.
Claims history
Discounts are usually available for policyholders with a proven history of no claims, as this tends to demonstrate that you’re a responsible owner who takes care of your caravan. As your claims-free years accumulate, the discounts become increasingly generous; a substantial no-claims bonus can save significant amounts annually.
While caravan insurance is there to be used when you need it, not every incident will require a claim. If your caravan gets damaged but the repair cost is lower than, or just slightly higher than your excess cost, consider paying out of pocket instead of claiming on your policy, preserving your no-claims bonus.
Always declare any previous claims, as non-disclosure could result in your policy being voided or future claims being rejected. Having previous claims on your record doesn’t automatically mean your premium will disproportionately rise, as many insurers take a balanced view, especially when an incident occurred several years ago or was beyond your control.
The level of cover you need
Under-insuring to save some pennies can be costly in the event of a claim, but over-insuring is another common mistake that can increase the price of your policy.
Your insurance quote will be calculated using the financial figure you provide for your caravan’s value; therefore, it may be more expensive if you claim the value to be higher than reality. A caravan’s value depreciates over time, so make sure you research the current market value of your caravan’s make and model, not what you originally paid for it.
If your caravan is stolen or irreparably damaged, your insurer will only pay out up to the market value, even if you claimed it was worth more when taking out the policy. Over-insuring will increase the cost of your premium despite not providing a higher level of cover that you can benefit from. Under-insuring the value of your caravan is just as detrimental, potentially lowering the cost of your premium but risking a lower payout in the event of a claim. Many insurers include a clause in their policy that reduces claim payouts proportionally if you’re found to be significantly under-insured.
Review your insured amount every year to ensure it reflects the current value of your caravan, preventing you from paying for unnecessary cover.
Total excess
Your excess is a pre-determined amount that you’re liable to pay in the event of a claim, made up of compulsory excess (set by the insurer) and voluntary excess (set by you). Agreeing to a higher voluntary excess will often reduce your premium.
However, you must always make sure that your total excess is affordable. A lower insurance premium is counterproductive if you can’t afford to claim when you need to. Your financial circumstances may change over time, so review your voluntary excess annually when renewing your policy to ensure it’s still affordable, and to assess if you can feasibly increase it to reduce the premium price.
Getting the cover you need
Whether it’s a towing mishap, damage due to extreme weather, or falling victim to theft, caravan insurance is there to protect you. Cutting costs may be tempting, but a policy that doesn’t suitably cover your needs will be useless in the event of a claim.
The cheapest policy isn’t necessarily the best value if it leaves you inadequately covered when you need to claim. Focus on getting comprehensive cover from a specialist touring caravan insurer who understands caravanning, then apply these practical tips to bring your premium to a fair and affordable level. The combination of quality protection and reasonable cost gives you true peace of mind on the road.
