Insurance Renewal during Lockdown.

[BigTim]

I have insured our 2007 Bailey Senator Arizona caravan for a number of years, mainly because of their New for Old policy for 'vans up to 15 years old. The NfO policy includes a condition that the 'van is serviced by a NCC Approved Workshop annually. I have complied with this requirement using an NCC approved mobile workshop. The caravan is stored in a specially designed area in our large front garden in a very low risk area.

However when my renewal documents, renewal is due on 29th May, arrived it still included the annual servicing condition. I queried the servicing requirement as it was not possible to comply with it. I was advised that, on an individual basis. the underwriters were varying this condition. I subsequently received revised renewal documents with the following additional condition.

"CS99 Due to the current COVID-19 lockdown YOU are not required to comply with the Servicing Condition of YOUR CARAVAN until YOUR next renewal date 29/05/2021 and YOU will be allowed 30 days from that date to comply"

Whilst welcoming this reasonable variation I, also, asked if ********* were not offering any reduction in the premium as the caravan cannot be used in the near future due to the lockdown and indeed has been unusable for the last 6+ weeks. The renewal premium has risen from £247.63 last year to £253.61 I was, however advised by the operative that******** were not offering any premium reduction as they were still insuring our 'van against other risks such as fire. However, I feel that the risk to the 'van is considerably less whilst it cannot be used.

Have anyone else been offered reduced insurance premiums because of the current situation? I will certainly been looking at other insurers if ********remain intransigent on this issue.

I'd be interested to hear of others in a similar situation or relevant comments
Tim & Cary

Moderator Edit: The name of the insurer has been removed.
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[ProfJohnL]

I personally think the insurer is acting reasonably by extending the period of grace for the service. However if the lock down continues, they may have to increase the extension further.

In respect of a refund because you cannot use the van due to to the lock down, I believe they are entirely correct.

Firstly: if the van is at its usual storage location, the risk of theft or damage has not changed. (in fact it would not surprise me if certain risks are greater as a result of the lockdown)

Secondly: Unless you have a clause in your policy about the number of days the van will be used, your insurer is leaving it up to you to decide when to use the van. For all the insurer knows you might not have used the van by choice, so the insured risk criteria has remained the same.

 

[otherclive]

I personally think the insurer is acting reasonably by extending the period of grace for the service. However if the lock down continues, they may have to increase the extension further.

In respect of a refund because you cannot use the van due to to the lock down, I believe they are entirely correct.

Firstly: if the van is at its usual storage location, the risk of theft or damage has not changed. (in fact it would not surprise me if certain risks are greater as a result of the lockdown)

Secondly: Unless you have a clause in your policy about the number of days the van will be used, your insurer is leaving it up to you to decide when to use the van. For all the insurer knows you might not have used the van by choice, so the insured risk criteria has remained the same.

I too think the insurer is being very reasonable. The premium increase is marginal to say the least and very good for a NFO policy. I’d pay up and get on with life.

 

[Raywood]

The servicing point looks to have been dealt with well. There is some ambiguity in the wording "annual service" so some leeway is built into that. You could argue that any service within the callender year is annual rather on any specific date. The insurer could only use this clause though if it were relevant to the claim, possibly an accident due to the lack of a service.
As for a discount that is a difficult one, although some motor insurers have given one. Possibly if you were to take out a new policy, insurers will recognise this point and may cut a few pounds off the premium to get the business.
Not sure the risk of theft is higher though. Police are stopping any caravans they see, so the risk for thieves is far higher than it was. At the same time the storage area where our caravan is kept is locked and we cannot get access, so if it were stolen we will have no way of knowing so the thieves would be well away before we knew it.
The general risk to insurers will be lower, but without knowing what the future holds it is difficult to quantify, so possibly they are staying clear of a discount. This should be a good year for them however.

 

[Scorpy]

Just renewed mine for 2020/21 and found it has actually reduced from last years premium. Although we don't have 'New for Old' she told me the Glasses Guide valuation and suggested I insure it for that amount +£1000 for a Motormover which is what the would pay me if it was Stolen/Written off etc.
Given that the van still needs cover for theft, damage & vandalism I thought they were being pretty fair and renewed with them. I wouldn't have expected a reduction for non use as the van would be covered on the car insurance when being towed anyway and apart from a different location I still need all the cover on it
Mike

 

[otherclive]

Just renewed mine for 2020/21 and found it has actually reduced from last years premium. Although we don't have 'New for Old' she told me the Glasses Guide valuation and suggested I insure it for that amount +£1000 for a Motormover which is what the would pay me if it was Stolen/Written off etc.
Given that the van still needs cover for theft, damage & vandalism I thought they were being pretty fair and renewed with them. I wouldn't have expected a reduction for non use as the van would be covered on the car insurance when being towed anyway and apart from a different location I still need all the cover on it
Mike

I don’t think that the caravan is covered by your car insurance when towing. Your car is covered whilst towing and if say the van hits another vehicle your car insurance will pay out for the damage to the other car if it was your fault. The damage to your caravan would not be covered.

 

[Scorpy]

I don’t think that the caravan is covered by your car insurance when towing. Your car is covered whilst towing and if say the van hits another vehicle your car insurance will pay out for the damage to the other car if it was your fault. The damage to your caravan would not be covered.

Yes maybe I worded that wrong-what I meant was the only difference would be the towing bit which was covered by the car but would need all the other cover whilst being towed or not.
Just can't see why a reduction would be given just because it's staying in one place. The Car insurance doesn't drop & the bikes haven't come out of the garage for 6 weeks but still insured in case some toerag decides to break in & help themselves etc.
Mike