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How to Get Cheap Caravan Insurance

By Edited Feb 2, 2016 0 0

Buying a caravan is a big time investment. In fact, next to your home or car it might be the largest single purchase you ever make. With such a large purchase it is important that you protect it, whether you use it for only holidays and vacation or if spend considerably more time in it. It is important to first understand what types of caravan insurance are available so that you can make the right decision on what type will be right for your needs.

There are essentially two main types of insurance that you need to know about. Despite their names, the type you need has more to do with the size of caravan you trying to insure.

Which Type of Insurance?

Static Caravan Insurance. This type of insurance covers very large caravans (aka mobile homes) that while can actually be moved, are typically stationery for periods of time and aren't moved frequently.

Touring Caravan Insurance. This insurance usually covers smaller caravans that are towed behind trucks. While they can certainly be stationery for long periods of time, they are characterized by trailer hitches and wheels.

Which Type of Coverage?

In order to get cheap caravan insurance it is important that you understand the various parts and pieces that will make up your insurance policy. Many of these share similarities to standard automobile insurance coverage.

Liability Coverage. This is very similar to the liability that you would get for your car. It covers personal injury and property damage that is your fault in an accident.

Collision. Again very similar to coverage on your car or truck. It will cover you caravan in the event it hits something.

Comprehensive. Also similar to car comprehensive insurance. This coverage will protect your caravan against damages that aren't included under the collision policy. This would include but isn't limited to items like theft or fire.

One item that you will need to think about is what level of insurance you want the collision/comprehensive to protect. This is particularly important in the event of total loss of the caravan. One option is to insure the for replacement value and another option is to insure it for market value. Replacement coverage will replace your caravan with a brand new one of the same model or like. Market value will only covers up to the current value of the caravan. So if you have had your caravan for a number of years, it is likely worth quite a bit less than you initially paid, and you would only be entitled to the lower present day value.

It is important to weigh the cost/benefit of these two options. Obviously, market value insurance is a better option for cheap caravan insurance, particularly if your caravan is older, but replacement value coverage may be worth the additional cost if you want the peace of mind that you will be fully protected in the catastrophic event that your caravan is totalled or stolen.

With this knowledge in hand you will need to balance the cost versus protection in order to find a cheap caravan insurance plan that your wallet can handle while still providing adequate coverage.



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