When you purchase your first caravan, it’s a huge mix of emotions. There’s excitement, nerves, and happiness, but many new caravan owners neglect some of the hidden costs and considerations of owning a caravan. They offer the freedom to explore Australia at your own pace, but it also comes with the responsibility of ensuring you have the right insurance coverage. Choosing the right, not just right price, caravan insurance can be challenging, given the variety of policies and providers available. We hope this guide helps you identify the main insurers and key factors to consider, whilst explaining how to reduce your premiums, and looking at potential pitfalls.
Australias Main Insurers
Australia has an array of caravan insurers that offer caravan-specific policies. Each one has different coverage options and pricing. Below are some of the leading insurers:
- CIL Insurance – One of Australia’s most well-known specialist caravan insurers, offering comprehensive coverage for a wide range of risks.
- NRMA Insurance – Provides caravan coverage with options for contents insurance and emergency accommodation.
- RACV/RACQ/RAA – State-based insurers that offer coverage for caravans, including towing and accidental damage protection.
- AAMI – Offers comprehensive caravan insurance that includes storm, fire, and theft protection.
- Allianz – Provides flexible policies with optional extras for added security.
- QBE – Covers accidental damage, theft, and liability protection, with options for additional contents insurance.
Each provider is different, so it’s essential to compare policies carefully.
So,What do you Look for in a Caravan Insurance Policy?
Consider the following factors:
1. Type of Coverage
There are 2 main coverage types, being comprehensive and third-party. You also may have the choice of market or agreed value. Let’s look at what this means for you.
- Comprehensive Insurance – This covers a wide range of risks, including accidental damage, theft, fire, and third-party liability. It covers you and anyone else involved in an accident if necessary.
- Third-Party, Fire, and Theft – Covers damage to other people’s property, theft, and fire-related damage but not accidental damage to your caravan. This means if you are in an accident, only the other party is covered.
- Market vs. Agreed Value – Market value policies reimburse you for the current market price of your caravan, whilst agreed value policies lock in a set payout amount. It is good to look at the market value of your van especially if buying new & used caravans, as it will drop in the first few years.
2. Inclusions and Exclusions
Make sure you read carefully what is and isn’t included in your policies. Some policies cover annexes, awnings, and personal contents, while others may exclude these. If services such as roadside assistance and towing are important, ensure these costs are included.
Understand the conditions for coverage in case of natural disasters, such as floods and bushfires. Remember these could happen at any time, and many have been left without the necessary cover at times of crisis. You also may want to check if emergency accommodation is included if you are traveling far from home, or living in your van.
3. Check The Excess and Claim Process
Excess amounts can vary and a higher amount will usually mean a smaller annual premium. Make sure when comparing that you have the same excess amount on each policy. Also, research the actual claim process for each. Remember:
- Choose an excess amount that balances affordability with potential claim costs.
- Read reviews to understand the insurer’s claim process and reputation for payouts.
4. Coverage for Travel and Storage
- If you plan to store your caravan when not in use, especially if it is for extended periods, ensure the policy covers theft and damage during storage, not just travel.
- Look for policies that provide coverage Australia-wide, including remote areas so that you’re not restricted to main towns.
Ways to Reduce Caravan Insurance Costs
Now that you’ve compared the main Insurance companies, it’s time to look at ways that you can minimise what you pay in premiums. These can add up, but there are several ways to lower your costs without sacrificing coverage.
1. Increase Your Excess
Your excess is what you’ll need to pay if you claim from your insurance policy. Opting for a higher excess reduces the cost of your premiums. In theory, this is a no-brainer, but be sure you can afford the out-of-pocket costs if you need to make a claim.
2. Combine Your Policies
You don’t have to take out caravan insurance on it’s own. Many insurers will offer discounts if you insure multiple things such as your home, car, or travel.
3. Secure Your Van
Adding security measures, and anti-theft devices proactively can help lower premiums. Consider installing wheel clamps, and alarms. Insurers see this as reducing risk.
4. Join a Caravan Club
Some insurers offer discounts to members of caravan clubs.
5. Pay Annually Instead of Monthly
Many insurers provide discounts if you pay your premium annually rather than in monthly installments.
6. Store Your Caravan Securely
Again, reducing the risk of theft can help Insurance companies see you as a lower risk. Keeping your caravan in a locked garage or private storage facility can reduce the risk of theft and lower your premium.
Cheap Caravan Insurance – Is It Worth It?
While it may be tempting to opt for the cheapest policy, low-cost insurance can sometimes leave you underinsured. Here are some common pitfalls:
1. Limited Coverage
Budget policies may exclude coverage for key risks, such as storm damage, theft, or emergency accommodation.
2. High Excess
Some cheaper policies come with significantly higher excess fees, making it costly to file a claim.
3. Poor Customer Service
Cheaper insurers may have slower claim processing times and less responsive customer support.
4. Depreciation Clauses
Some budget policies only pay out the depreciated value of your caravan rather than a fair market or agreed value.
5. Lack of Coverage for Contents and Accessories
Annexes, awnings, and personal belongings inside your caravan may not be covered under a basic policy.
Conclusion
Choosing the right caravan insurance in Australia requires careful consideration of coverage, costs, and insurer reputation. While it may be tempting to choose the cheapest policy, ensuring that you have adequate protection will provide peace of mind and financial security in case of unexpected events. Compare policies, assess your needs, and take advantage of discounts to find the best caravan insurance for your adventures, whether you own second hand caravans or new caravans.
