Caravan Insurance - Be Warned!

Mar 17, 2020
I thought my experience might help other forum members who are re-insuring their caravans (or motorhomes I presume).

I have a new for old policy and received an invitation to renew letter a couple of days ago.
The caravan, although a 2019 model, is no longer listed in the manufacturer's brochure since the exact model/range is no longer available for 2021.

Checking over my renewal I felt it was wise to look for an "equivalent" van to provide a replacement cost and this I have done. The cost of replacement, including any extras, for a van that is very close to my current model except in name, seems to be around an extra £800 over the figure I had submitted for my caravan last year.

My invitation for renewal letter states "You would normally need to review the value of your caravan each year, but in the light of the Coronavirus pandemic we will honour up to a 10% increase on your sums insured limit should you need to make a claim in the next policy year"

I phoned my Insurance Company for peace of mind and told them I had checked the van, found an equivalent and noted the increase in value of around £800. I then drew attention to the above sentence in the renewal letter and told the representative that it seemed I could go ahead with the quote without concern. The £800 increase was way below 10% of the value insured.

WRONG. I was told that since I have checked the cost of replacement I would now need to insure at that full cost and pay any increase in premium"

To be totally clear I asked if I had not contacted the Insurers and simple taken the invitation to renew quote would I have been covered - considering the 10% price increase allowance.

The answer was YES.

Whilst you may argue that the Insurance Company is correct in taking the stance they take it may be that others, in a similar situation to myself, will be best advised providing the quote is acceptable, to simply go ahead.
May 7, 2012
This is simply a way of trying to help make sure people do get near the correct figure, but it will be based on an average and everybody should review the sum insured and correct it for this cover every year, if you do not check the replacement value it is not worth taking out these policies. Replacement costs always increase so you have to do it annually.
  • Like
Reactions: otherclive


Latest posts