While caravan insurance is similar to car insurance, there are several things you need to consider before choosing an insurance provider for your new or used caravan. This guide is intended to help caravan owners, especially off-road caravan owners, better understand issues surrounding caravan insurance and how to choose the best policy based on their specific circumstances.
While some insurance companies that offer car insurance also offer caravan insurance, it’s likely that you have not worked with a specialist caravan insurance provider. Specialist caravan insurance companies are a popular option because they are more familiar with caravans than general car insurers.
Overview
Caravan insurance companies offer numerous cover options for you to choose from, with different premiums that reflect the amount of risk they are taking by covering you. A caravan is like a home on wheels than just a car, so there are a lot more aspects included in policies like furnishings and contents.
Do I Need Insurance for my Caravan?
While it’s not a legal requirement to have caravan insurance in New Zealand, it’s highly recommended for various reasons. Just like regular cars, caravans are expensive assets and the time they spend on roads and highways touring around New Zealand puts them at risk of damage from accidents, fires and other unfortunate events. Also, because of their size, caravans are typically parked outside, which is less secure than being parked in a garage.
By not having insurance cover, you are forced to spend your own money on repairs in case you have an accident of some sort. Having caravan insurance offers you peace of mind about not having to spend your own money when your caravan is damaged.
What does Caravan Insurance Cover?
Caravan insurance is often described as a mix between home and vehicle insurance. On top of the caravan body and all its parts (e.g. doors, roof vents, skylights), caravan insurance covers also include the standard manufacturer installed equipment and furniture (e.g. heater, stove, fridge), accessories (items sold with or permanently fitted to the caravan like satellite dishes, awnings, solar panels, and reversing cameras) and any modifications that your insurance company is willing to cover (e.g. custom rims). It also covers liability for damages and injury suffered by other road users in the event of an accident.
The insurance policy can also cover other things like roadside assistance, trailer cover and other essentials that are not included in the main cover. If you use your caravan as your primary place of residence or for work purposes, you’ll need to check with the insurance company that the policy covers this, as not all policies do.
Caravan Insurance Cover Options
Caravan insurance policies come with various cover options, with different premiums and terms for each. Just like general car insurance, most caravan insurance companies offer both third party and comprehensive cover. Caravan insurance companies commonly provide additional cover options like storage cover, illegal conversion, theft and third party fire.
How is My Premium Decided?
Caravan insurers consider four factors when calculating what premium you’ll pay for your caravan insurance, which is the value of your caravan, the type of cover you choose, the additional cover options you choose and any cover you add on to the base cover for specific items. A comprehensive policy offers the highest level of cover but charges the highest premiums. In contrast, the third party cover is the most affordable in terms of premiums, but it only covers the basics.
If you have added special parts and accessories to your caravan like energy systems and aftermarket suspensions, you should consider including them in your caravan insurance cover in order to enjoy maximum benefits.
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