New For Old
This indicates that you will receive a brand new ‘like for like’
caravan in the event of a total loss (deemed by the insurer). This
generally applies to caravans which are under 5 years of age (since
manufacture), but this varies company to company. Towergate are one
of the few companies which boast a new for old policy which lasts
for the life of the caravan, as long as you take out un-interrupted
insurance with us within the initial 5 year window.
To warrant this cover you will need to insure the caravan for
its full retail value, that means the value of the latest
equivalent model (if identical model no longer available), as shown
by the Glasses Guide. On occasion companies may state ‘New for Old’
on their policy but in actual fact won’t have checked this value,
so make sure you do when applying for insurance. All caravan
insurance advisors, irrespective of company, should posses the
latest glasses guide book.
Agreed Value
This generally applies to the first 12 months of ownership of
the caravan in question and age is irrelevant. As long as you have
bought the caravan from a registered dealer (and can prove it) you
may insure the caravan for the amount paid at point of sale. This
is often a higher level of cover compared to market value as it may
refer to a price paid 11 months prior to the insurance
commencing.
Market Value
Here you simply insure the caravan for its market value, as
deemed by the Glasses guide. There may be potential to insure for a
higher value but proof of this would have to be shown by way of
receipts for refurbishment or relevant improvements at point of
claim.
Other things to look out for…
Excess – Generally a policy will have an excess
on it, this indicates the initial amount of any claim that you will
pay. For example: If the value of your claim is deemed to be £600
and your excess is £100 – You will receive the difference, in this
case £500.
Excesses can often be increased or decreased to affect the
premium (the amount you pay for your insurance). Increasing your
excess will often result in a discount as the insurance company
decreases the potential payout in the event of a claim.
Towing experience/courses – Often previous
experience of towing will play a part in deciding the cost of your
insurance premium. Make sure you make any company you deal with
fully aware of your past history of towing.
Claims – Previous claims can also play a major
part in determining insurance premiums. A history of no previous
claims can result in a significant reduction in the cost of your
policy as you may be deemed a lower risk.
Security – Market research has shown that an
increase in the number and quality of security products used to
secure your caravan, reduces the likelihood of theft and therefore
a claim. To address this many caravan insurers have implemented
discounts within their policies, reducing the premium for specific
products obtained.
