Caravan insurance isn’t a legal requirement in Australia but you wouldn’t want to end up in a situation where you are on the hook for thousands of dollars due to a lack of caravan insurance.
If you hurt someone with your caravan or your caravan is damaged and needs repairs, or someone steals your possessions from inside the trailer or there is a fire inside the trailer, you will have to pay for everything out of your own pocket just if you don’t have your caravan insured. Fortunately, a wide range of caravan insurance is available covering almost every eventuality.
Caravan Insurance: Definition
Simply put, it provides protection against damage to the caravan, accidental loss or theft of the contents and accessories inside. Similar to car insurance, a huge range of covers is available for insuring your trailer.
All kinds of insurance cover can be broadly grouped into 3 main types based on the type of caravans such as insurance for trailer tent, insurance for a static caravan, and insurance for touring caravan.
It works like the insurance for other vehicles which means you have various options such as insurance only for third-party damage, third-party damage and coverage for fire and theft, and comprehensive insurance that covers everything. There are also other additional options such as layup coverage, annex coverage and content coverage.
Caravan Insurance: Coverage
- Fire damage
- Contents coverage
- Legal liability
- Solar panels
- Locks and keys
- Storm or flood damage
- Intentional damage
- Accidental damage
- Emergency transport and repairs
- Hail and flood damage
Insurance providers offer a variety of options depending on the type of coverage you choose. For example, if you choose to have cover for only third-party damage, you won’t get any reimbursement for damage to your own caravan but it will provide coverage for damage to third party property or in case you injure someone.
Similarly, when you choose comprehensive coverage, you get protection for almost everything which can be intentional or accidental including natural weather events such as earthquakes, hail, floods or storms.
Caravan Insurance: Exclusion
- Damage due to poor upkeep
- Regular wear-and-tear
- Faulty workmanship
- Extreme weather events
- Damage due to improper maintenance
- Reckless use
- Improper security
Even if you choose comprehensive coverage, you are not covered for everything. For example, if you do not take adequate measures to keep your caravan secure and leave it unattended, it is likely that insurers will reject your claim. If you fail to maintain the caravan properly leading to rust or infestation, you are unlikely to get compensation for your losses.
Similarly, if your windshield is damaged while on the road, a typical insurance policy won’t cover it unless it is specifically mentioned in the policy. Also, the insurance generally doesn’t pay for anything if it is covered under the manufacturer’s warranty.
Caravan Insurance: Cost
There isn’t a fixed cost as it varies from caravan to caravan and from one individual to another. It depends on a variety of factors such as the value of the caravan. If it’s an expensive caravan, expect to pay a relatively higher premium.
If you like to take out your caravan more frequently than others, expect to pay a higher premium. Your premium will be less for third party damage compared to comprehensive coverage. The cost of insurance will also depend on the amount of money you agree to pay out of your own pocket.
It is possible to keep the car and insurance costs down by properly storing the caravan when not in use and by keeping your driving record clean. You can also bring the insurance premium down by keeping your caravan at a certain location for an extended period of time.
Make sure your caravan is always secure. Install security devices such as alarms, sensor lighting, cameras and other such devices to keep everything secure. Some insurance companies may also offer a discount when you use them for buying multiple policies.
How to Keep Your Caravan Safe
You can take certain security measures to keep your caravan safe. It will not only protect you but will also help in reducing the insurance premiums. Make sure you use modern security devices such as cameras and sensors, alarms and immobilisers for enhanced security.
Locking devices such as hitch locks, corner locks or wheel clamps are another cheap option to keep your caravan safe and secure. Make sure your valuables are always hidden inside the caravan.
These days, there are plenty of trackers and tags that can be added to any vehicle including the caravan to let you know of its location in case it is stolen.
Even though caravan insurance isn’t a legal necessity, you will be held liable for the damages caused in case of an accident. Also, most people like to have plenty of modern comforts inside and those modern comforts are expensive, especially electronic items. Insurance will protect you in case of theft. Overall, caravan insurance gives you peace of mind and allows you to enjoy your road trip without unnecessary worries.
Visit RV & Caravan Centre for Your Caravan Servicing Needs
We are an MVRIA licensed caravan and motorhome repairer and have been working in the industry for more than 25 years. We pride ourselves on being the preferred repairers for the major insurance companies in Australia. We are also the authorised warranty agents and repairers for the major caravan manufacturers.
Please give us a call today on 1800 782 236 to learn more about our caravan services or leave an enquiry.