Will My Caravan Be Covered If I Lend It to A Friend?

Before you hand over the keys, you should make sure that your caravan insurance policy provides the right coverage for this situation. Knowing what your insurance covers can help you avoid unexpected costs or complications that can come up if an accident happens when someone else is using your caravan.

Understanding your caravan insurance and what it covers

The first thing to do before you decide whether to lend your caravan out is to look at your current caravan insurance policy — if you have one.

Caravan insurance policies often have specific definitions regarding who is covered, so be sure to check who this extends to and it’s also worth noting that some policies with this kind of coverage may not include friends or unrelated individuals. If you’re still unsure about who is covered under your caravan insurance policy you should double check directly with your provider.

Are you ‘lending’ or ‘hiring’ out your caravan?

There is a significant difference between ‘lending’ and ‘hiring out your caravan, and they can have very different policy limitations.

• ‘Lending’ your caravan, for example to friends and family as discussed in this article, means you are not receiving any financial compensation/benefit.
• ‘Hiring’ your caravan is an official transaction where you are gaining financial income from the party to which you have hired the caravan.

Note in this article we are talking specifically about ‘lending’, and that for ‘hiring’ out your caravan altogether different terms may apply.

For example, in Towergate static caravan policies, there is a limit to the number of days your static caravan can be hired out, whereas if it’s just being lent, there isn't a time restriction.

Named and additional users cover

If your policy doesn’t automatically cover friends or non-household members to use your caravan, you may be able to add them as a ‘named’ or ‘additional user’. This process involves contacting your insurer to include your friend or family member as an authorised user of the caravan. Many insurers offer the option of extending this cover but it’s important to weigh the cost of changing your policy against the potential risks of lending out the caravan.

However, while you might be able to add additional users onto your policy, there could be further conditions or restrictions to adhere to if you intend on letting your friends or family borrow your caravan for a holiday - this can vary depending on your provider so you should check whether your policy permits this. You should fully understand your policy terms prior to lending your caravan to anyone.

If lending your caravan to friends or family members is covered under your policy, it’s important to make sure they understand their responsibilities when using the caravan to ensure that they are adhering to the terms of your insurance policy. For example, you could provide them with instructions on how to keep the caravan secure, safety tips, parking guidance and any other procedures to prevent damage or theft.

Always be sure to read the terms and conditions in your insurance policy. It’s important to be aware of any limitations in your policy to keep your caravan protected, even when it’s being lent to someone else.

Liability considerations

Another factor to think about when lending out your caravan is liability coverage. This is in place to protect you in case accidents that result in property damage or injury to others happen. You should ask your provider whether liability coverage is available and whether it extends to the person borrowing your caravan.

Without liability coverage, you might be held financially responsible for any damages or injuries that occur while your caravan is being used by someone else.

Informing your insurer

To be on the safe side, it’s always best to check with your insurer before lending your caravan to a friend or family member so as not to risk invalidating your policy.

They can then let you know what kind of notice and information they require. This will normally include the length of time you are lending the caravan for and details of the new user.

Do you need caravan insurance?

While lending your caravan to a friend or family member can be a kind gesture, it’s important to fully understand the insurance implications behind it. But don’t be scared off by this, by following the steps in this guide, you should have little to no problems with the process.

Whether you’re lending out your caravan or not, insurance might not be something you originally thought you needed, or maybe you’re looking for a change in provider. Whatever the reason, if you’re interested in getting insured, you can explore our caravan insurance options today and we’ll help you get a policy in place that works for you.

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.