How Much is Caravan Insurance?

Caravanning is now a mainstay for UK holidaymakers after becoming increasingly popular in recent years. In fact, 47% of UK adults report that they have gone on a caravanning holiday in the last three years. The industry is a significant part of the UK's leisure and tourism sector, and contributes to the economy.

With this rise in popularity, protecting your investment with the right caravan insurance has never been more important. However, how much is caravan insurance?

Factors influencing caravan insurance costs

Type of caravan 

The type and model of caravan you own is one of the primary factors that can influence insurance costs. Touring caravans, which are towed, will typically have different insurance prices compared to a static , due to the higher risk of potential damage caused in a motor accident.

Value and age of the caravan

A caravan’s market value and age can impact insurance premiums. Newer caravans usually cost more to insure due to their higher value, and in addition you might want to insure your contents or belongings, which can also impact your policy premium:

• For touring caravans: contents, awning and equipment can be insured
• For static caravans: contents and additional structures (i.e., decking) can be covered

Usage and storage

How often you use your caravan and where it’s stored or located may influence insurance costs. Frequent use can lead to higher premiums - for touring caravans, we define frequency of usage as ‘how often the caravan is towed’. For static caravans, there may for example be an increased premium if they are in an area with a higher-than-average risk of flooding.

If you have a permanently sited touring caravan this would be classed as ‘limited’ usage, meaning it may be cheaper to insure than one that is towed regularly, depending on the value of caravan.

Another factor that can impact cost is how you use your caravan. Whether it’s purely for personal use or if you choose to hire it out can have an impact on the premium and cover available.

Having higher levels of security at the storage facility or seasonal pitch along with additional security features on your caravan such as alarms, wheel clamps and tracking devices can sometimes help to reduce

The type of policy you opt for: New for old vs Market Value policies

New for old policies are intended to replace your damaged caravan in the event of a total loss with the same make and model, or the closest equivalent, subject to the sums insured you have selected being adequate.

One thing to look out for with these policies is that they often only apply to caravans within a  hilst you may only be able to take out new cover on new for old up to a certain age limit, Towergate will continue to cover you on a new for old basis past this limit, for the lifetime of the policy.

Market value policies provide cover based on the current market value of your caravan at the time you make a claim. This means that if your caravan is damaged, the payout will reflect its depreciated value rather than the price you originally paid, again, subject to the sums insured you have selected being adequate.  

So, how can I reduce caravan insurance costs ?

Increase security measures

Installing security features can potentially lower your insurance premiums. Storing your touring caravan in a secure facility can also reduce the risk of it being broken into or stolen.

Opt for a higher excess

Most caravan policies will include a standard excess, i.e. the first amount of any claim you will be responsible for; typically ranging from £100-£500*, potentially higher depending on your circumstances. However, some insurers do offer a voluntary option where you choose a higher excess to reduce your insurance premiums. While it can lower your monthly cost, it can mean paying more out of your own pocket if you make a claim. Consider this trade-off carefully.

*The standard excess on a Towergate touring caravan is £100. On our static caravan and park home products you have a choice of excesses, £75, £150 and £250.

Breakdown of potential additional costs

Additional costs can potentially bump up your insurance expenses, but having extra cover can add additional peace of mind. Optional additional covers like European travel add extra value and give you more freedom to roam further afield but will cost more. Administrative fees for changing or cancelling your policy can also add to the overall cost.

You may also have the option to include additional covers like key cover for touring caravans, or legal expenses, excess protection, and home emergency assistance cover for static caravans.

Caravan insurance from Towergate

Get a specialist caravan insurance quote from us today, either online or by phoning us on 0330 808 9130.

About the author

Adam Summersby is a respected leader with 11 years’ varied experience in niche personal and commercial lines insurance, including caravan, site operators and excess reimbursement, with proficiency in leadership, sales and account management.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.