Approximately 3000 caravans are stolen in the UK each year, according to the Home Office. The value of unrecovered stolen caravans is estimated to be around £30 million. In addition, construction methods and materials used in modern tourers can make them expensive to repair should anything happen to them. So if you don’t already insure your van, you might want to consider it. Insurers are constantly weighing up the risks, and come to differing conclusions. As a result, you’ll find different levels of insurance cover at differing prices. It can be confusing. But help is at hand. Here, we will explain everything you need to know about caravan insurance. We reveal tips on cutting insurance costs and go undercover to source the the best insurance quotes.

DO I HAVE TO INSURE MY VAN?
There is no legal requirement to insure your caravan against damage or theft. But the law says you must insure yourself against third-party liability when you tow your van on public roads. Most car insurance policies include this provision. Even so, tell your insurer that you intend to tow a caravan and obtain written proof of third-party liability cover.

WHAT IS 'THIRD-PARTY LIABILITY'?
This covers you if your van damages another vehicle, someone’s property or causes personal injury to another person while you are towing it. However, it will not pay for any damage to, or theft of, your van.

HOW CAN I INSURE MY CARAVAN AGAINST THEFT AND DAMAGE?
You need fully comprehensive insurance for this. The other option is to take out specialist caravan insurance, which generally gives a much wider range of cover.

WHERE CAN I GET INSURANCE?
The Camping and Caravanning Club and the Caravan Club both offer insurance, as do specialist caravan insurers. And if you don’t want the hassle of sourcing your own quotes, you can ask an insurance broker to do it for you. You might be able to include your caravan on your home insurance policy, but this depends on the insurer.

WHAT IS AN INSURANCE BROKER?
A broker acts as an intermediary between you and the insurer. You explain your requirements and they shop round for the best deal. The premium they quote includes their commission and is often negotiable.

I'M BUYING A CARAVAN ON HIRE PURCHASE. DO I HAVE TO INSURE IT?
Most hire purchase agreements demand comprehensive insurance. This is because the van legally belongs to the hire purchase company until you make the final payment. So if the caravan is stolen or written-off before you repay the loan, the hire purchase company will demand a large final payment. By insisting that the van is insured, it stands a good chance of recouping its money. With a personal loan, insurance is rarely a stipulation.

DOES THE MAKE OF CARAVAN MATTER?
Not if it’s a UK-built single-axle caravan. But some firms won’t insure twin-axle or German-built caravans because they are between five and 12 times more likely to be stolen. The models most at risk are those more suited to permanent occupation. There are policies around that cover these types of vans, but the premiums are often dearer and the insurer might demand higher standards of security.
We obtained quotes for a 2001 Hobby Prestige 540 UL, worth £8350, using otherwise identical information to our quotes for a Bailey Pageant Bretagne (see below). Insurer Adrian Flux was one of the few firms prepared to cover it (quoting a premium of £377.97) provided it had a tracking system. However, an online quote from Saga gave us a premium of just £220.41 - cheaper than for the Bailey. Which shows that it pays to shop around.

MUST I FIT SECURITY EQUIPMENT?
Most insurers expect you to use a hitchlock, wheelclamp, or both, when the caravan is being stored. Some also insist that you use one or both even when you pause from touring to take a tea break. You must ask each insurer about its individual policy. Most will give discounts (typically 5-15%) if you have an alarm or electronic tracking device fitted to the caravan.

DO INSURERS INSIST ON A PARTICULAR MAKE OF SECURITY DEVICE?
Some insurers have an approved list of security products; some don’t. Products with Sold Secure status are often favoured. Sold Secure (01327 264687) is a government backed programme and any product carrying its logo has been independently tested and found to be suitable for caravans. Even if your policy doesn’t stipulate a specific product, your insurer will expect you to use decent-quality anti-theft equipment.

CAN I KEEP MY VAN OUTSIDE MY HOUSE?
Yes, but most insurers will insist it’s kept off the road and equipped with security devices. This is because thieves often target caravans stored outside people’s homes. The other security concern about leaving a caravan outside your home is that when it isn’t there, thieves will know you’re on holiday and that no one’s at home. Does it matter where I store my van? Most insurers are unconcerned, provided you adhere to their stipulated security conditions for that type of location. But some offer discounts if you use a professional storage site, such as a CaSSOA site.

CAN I GET CONTENTS INSURANCE?
Your van’s contents could already be covered by your home insurance, so check. If not, most specialist policies include contents up to a set amount that can be increased for an additional premium. Most insurers insist that all valuables are removed when the caravan is not in use.

WILL MY CARAVAN BE INSURED IF I LEND IT TO FAMILY OR FRIENDS?
Many policies include this option for free; a few charge a small premium. Insurers who don't charge nearly always mention it prominently. Those who don't might mention it in the small print.

WILL MY CARAVAN BE INSURED IF I TOUR ON THE CONTINENT?
Specialist insurers allow for a set period of cover each year for Continental touring as part of the standard cover. As a snapshot, Caravanwise offers 60 days (90 days for an extra £10); the Caravan Club gives 182 days; and Saga offers all-year-round cover.

WHAT IS 'NEW FOR OLD' INSURANCE?
This is when no deduction is made for wear and tear if you claim. So if your two-year-old caravan is stolen, the insurer pays out the value of a new van, not the value of a two-year-old van. New-for-old can apply to both the van and its contents, depending on the policy. It's more costly than insurance based on wear and tear, and conditions vary. Some insurers insist that you have owned the caravan from new. WHAT IS 'EXCESS'?
This is the sum you must pay in the event of a claim. Typical excesses vary between £100 and £250. Let’s say your excess is £100 and you make a claim for £2000: you pay the first £100 and the insurer pays the remaining £1900. Increasing the excess can reduce the premium, but you must balance the saving against potential loss. Also, if the insurance risk is high, the excess will be higher. Some policies have one excess for damage claims and another, higher excess for a claim in the event of theft. Ask the insurer and read the small print.

WILL A CLAIMS-FREE HISTORY MEAN CHEAPER INSURANCE?
Yes, but discounts vary. To give an idea, the Caravan Club offers a discount of 10% for one year of no-claims on your caravan, 15% for two years and 20% for three or more years. Saga Insurance gives a 5% reduction for one year of no-claims and 10% for two or more years. But if you have a string of claims, the insurer will class you as a higher-than-normal risk and raise the premium.

HOW MUCH DO QUOTES DIFFER?
To find out, we rang various insurers, posing as a 62-year-old retired man, living in a rural Essex town, with five years’ no-claims and ten years’ caravanning experience. Our van was a new £12,184 Bailey Pageant Bretagne that would be stored on our drive. We had a hitchlock and wheelclamp. We wanted a new-for-old policy, £1000 contents cover and free cover for friends that might borrow the van. All eight insurers we approached could meet these requirements. Annual premiums ranged from Adrian Flux’s £304.55, to £457.88 with Bakers of Cheltenham. The extent of cover varied, too. Adrian Flux’s policy allowed for 60 days Continental touring compared with Bakers’ 365 days, and a theft excess of £250 compared to Bakers’ £100.
Caravanwise offered cover for £394.44 but only 60 days Continental cover, and more than £20 per day (for up to three weeks) for alternative accommodation if our caravan was damaged on holiday. Tourer Select’s £382.92 policy offered an all-purpose list of strong coverage features, although it said we would have to fit a hitchpost on our drive, or the excess for theft would rise from £100 to £250.
NFU Mutual, the Caravan Club, the Camping and Caravanning Club and Saga all gave quotes within £35 of each other and offered good levels of cover. Each had its advantages: Saga (£331.58) gave 365 days free European cover; NFU Mutual (335.23) had just £75 excess; the Caravan Club (£332.98) offered £104 per day (for 15 days) for loss of use; and the Camping and Caravanning Club (£312.27) were cheap for a decent all-round policy.
The purpose of our mystery shopping wasn’t to pick a winner, since the results we got would have changed had we posed as someone else. Rather, we wanted to illustrate the variety of cover, the disparity of premiums and the importance of shopping around.
Always obtain at least five quotes. Set out the details of each policy on a sheet of paper, together with the premium and any special conditions. Once you’ve chosen, check the small print and query anything that’s unclear. If it all stacks up, sign the policy and then relax in the knowledge that your tourer is covered should the worst happen.

See the January 2005 issue of the magazine for this feature article in full
Back issues can be ordered by telephone on 08456 777812