I rang Volvo Assistance, and they confirmed:
* if my car breaks, they tow the caravan to wherever the car goes
* if my caravan breaks, they can do minor fixes (e.g. replace a tyre) , otherwise they will tow it to a nearest workshop
All of the above works if the car is towing the caravan in the moment of the accident.
Seems fair to me, is there something that ideally I need from a caravan recovery policy that is missing ?
Also, they mentioned their recovery does not work (for both car + caravan) on French motorways as they are privately owned. Is it the same for other breakdown/accident insurances? I would rather stick to French motorways...