Caravan adventures offer the freedom to explore new destinations and create unforgettable memories on the open road. However, amidst the excitement of planning your next journey, it’s essential to ensure that you have the right protection in place. Caravan insurance plays a crucial role in safeguarding your investment and provides peace of mind throughout your travels.
In this article, we’ll delve into everything you need to know about caravan insurance in Australia. Whether you’re a seasoned road-tripper who spends more time on the road than at home or a first-time caravan owner eager to get out and explore the great outdoors, understanding the intricacies of caravan insurance coverage is vital to protecting yourself, your tow vehicle, and your caravan. Now, let’s get started!
What is caravan insurance?
Caravan insurance is designed to cover caravans and their contents against various risks and liabilities. In Australia, it typically provides coverage for events such as accidental damage, theft, vandalism, fire, and weather-related damage.
Caravan insurance can also include liability coverage for incidents that occur while the caravan is being towed or parked, as well as optional extras like breakdown cover and coverage for personal belongings kept inside the caravan. The specific coverage and terms of a caravan insurance policy can vary depending on the insurance provider and the policy chosen.
At Lewis RV, we highly recommend all caravan owners, whether you have a new caravan or used caravan, take out caravan insurance upon purchasing a caravan.
Yes, you really do need to purchase caravan insurance along with your caravan!
Why is that you ask? Caravan insurance is a necessity for several reasons including:
- Financial protection: It provides financial protection against a range of risks. Without insurance, you could face significant expenses to repair or replace your caravan in the event of such incidents.
- Liability coverage: Caravan insurance often includes liability coverage, protecting you from financial responsibility if your caravan causes damage to other people’s property or injures someone while being towed or parked.
- Mandatory in some instances: While it’s not universally compulsory for driving on Western Australian roads, a privately owned caravan park may require proof of caravan insurance before allowing you to use their site.
- Protection for your investment: A caravan is a significant investment, and insurance helps safeguard that investment against unexpected events. Whether it’s damage from a storm or theft while parked, insurance ensures you can repair or replace your caravan without bearing the full financial burden.
- Peace of mind: Knowing that your caravan is insured provides peace of mind, allowing you to enjoy your travels without worrying about potential financial losses or liabilities.
Unfortunately, accidents do happen and you never know when you might need insurance coverage. Therefore, taking out a caravan insurance policy is an absolute must!
What does caravan insurance cover?
The specifics of what caravan insurance covers varies depending on individual policy. However, generally most comprehensive policies will include accidental damage, theft, vandalism, fire, and weather-related damage. More specific examples of what caravan insurance covers include:
- Accidents on the road whilst being towed.
- Theft of your caravan or its contents, as well as damage resulting from vandalism or attempted theft whether that be on the road, at caravan parks or whilst in storage.
- Damage caused by adverse weather conditions, including storms, hail, flooding, and snow.
- Liability claims if your caravan causes damage to other people’s property or injures someone while being towed.
- Cost of accommodation if your caravan suddenly becomes unusable during a trip due to a covered event.
Types of caravan insurance policies available
Like with any other type of insurance policy, there are different levels of caravan insurance policies depending on the level of coverage you want. The types of caravan insurance available on the current market will also vary from insurer to insurer.
Most caravan insurers will offer one comprehensive caravan insurance policy that can be tailored depending on your needs. However, you may also see others offer different types such as third party fire and theft, and third party only, like you would see commonly with car insurance policies.
Some insurers may also offer different insurance policies for static caravans that remain onsite as opposed to ones that are towed around to different locations.
All-in-all, the types will vary from insurer to insurer so it is important to do your research and read relevant policy documents to decide on an insurance policy. For most caravan owners, comprehensive insurance is a no-brainer.
How much does caravan insurance cost?
In Australia, the average cost of caravan insurance is $560 per year. However, the answer to this question is, it depends! Naturally, newer luxury caravans will cost more to insure than used small caravans. Caravan insurance premiums can vary depending on the following factors:
- Type of coverage
- The caravan’s current market value
- Whether you’re also insuring valuable assets
- Age and condition of the caravan
- Where and how your caravan is stored
- Caravan security measures taken
- Your caravan insurance claims history
- Location
- Additional insurance policy addons
- How often you use it
- The insurance excess chosen when you make claims
What to consider when purchasing a caravan insurance policy
Now that you understand a bit more about the importance of caravan insurance, here are some things to consider when choosing the right policy for you:
- Your caravanning experience: If you are new to owning and towing a caravan, you may want to consider a higher level insurance policy with a lower excess.
- Travelling with valuables: You may want to consider increased contents cover if you are regularly travelling with valuable items.
- Insurance policy inclusions & exclusions: Check the inclusions and exclusions list on each policy you consider to ensure it’s not missing anything important to you.
- Security options: If you want to add additional caravan security features such as security screens, wheel clamps, alarms and locks, do it prior to taking out the insurance policy to reduce your premium.
- Reputable insurers: Look for insurers with a solid reputation in your area. Consider looking at reviews or asking other caravan owners for recommendations.
- Consider repairers: Some insurers only allow repairs to be carried out at specific repairers.
- Insurance claims process: Consider the process for making a claim. For example, can you do it online or does it have to be over the phone? How long does it take to pay a claim? Can you make a claim at all hours of the day?
Talk to the experts at Lewis RV
At Lewis RV, we understand buying your first caravan can be overwhelming. That’s why our dedicated team is here to help you. We’re more than happy to help you with the various ins and outs of caravan ownership including insurance policies, financing options and accessory fitting.
Whether you are visiting our dealership for servicing, caravan accessories, new or used caravans, we’ve got you covered. Don’t hesitate to get in contact with us by submitting an enquiry online calling (08) 6555 7755 or by visiting us in person.
Caravan insurance FAQs
No, your car insurance policy may cover towing a caravan but it generally won’t cover any damage or issues with the caravan itself. Of course this may vary depending on your existing policy so it’s best to check your car insurance PDS to ensure both your tow vehicle and caravan are adequately covered.
If your car insurance doesn’t already cover towing a caravan, yes it is recommended that you look at changing your policy to insure your car for towing. Towing a caravan presents unique risks, and having appropriate insurance ensures you're protected financially in case of any unexpected accidents or damage.
What caravan insurance doesn’t cover will vary from policy to policy but generally, caravan insurance policies tend to exclude the following:
- The tow vehicle
- Damage or loss to the caravan outside of Australia
- Damage or loss if your caravan was not kept securely
- General wear and tear
- DIY repairs
- Improper use
- Poor service / maintenance history
- Illegal towing / driving
- Going against manufacturer recommendations - e.g. taking an on-road caravan off-road.
Most caravan insurance companies won’t insure a repairable write off caravan which is why purchasing caravans that have been written off without a full service history isn’t recommended. If you are able to find an insurer who will provide coverage for write offs, you’ll want to budget for higher premiums as well as any additional costs needed to get the caravan re-registered to legally be on the road again.
When buying used caravans, you can protect yourself from buying a lemon by shopping with reputable caravan dealerships that will be able to share with you the used caravan’s full repair history.
In Western Australia, it’s not compulsory but strongly advised that you do have caravan insurance. The benefits outweigh the costs! Please also keep in mind, it is however, mandatory to have compulsory third party insurance on the car that is towing your caravan.
