If you plan to join the other 19 million other Aussies keen to stay in a caravan park, you’ll need to insure your caravan. Spending half the year locked up and the other half touring around Australia, they endure a lot, so you want to make sure it is protected.
Here are the top mistakes to avoid when purchasing insurance to protect your beloved caravan.
Mistake #1: car insurance covers my caravan
Unfortunately, for most people, car insurance does not cover your caravan. Generally speaking, car insurance only covers the vehicle listed on your insurance certificate, not anything you’re towing. Some car insurances may provide liability for damage done to others’ property but not your own.
You need to get a policy that covers your caravan or find separate insurance. Also, think about taking out a personal insurance policy—your valuables in your caravan probably aren’t included in the insurance.
Even adding a tow hitch to your car may invalidate your car insurance. Ring up your provider and update them.
Mistake #2: I don’t need caravan insurance
Caravan insurance is not mandatory in Australia, so many caravanners mistakenly believe they don’t need it. However, most caravans cost tens of thousands of dollars (if not hundreds of thousands). After all, your caravan is in “the hands” of the car towing it. Any car malfunction would result in possible damage to the caravan as well. So it’s usually not worth risking your financial investment and beloved home to theft or damage.
How much is caravan insurance?
Caravan insurance doesn’t have to cost a fortune. Take time to shop around for different policies to ensure you don’t overpay. Make a list of everything you want to be included in your policy and negotiate with the insurance provider to pay a fair price. Remember, low-cost insurance isn’t the best deal.
Mistake #3: my insurance covers me overseas
While very few Australians take their caravan overseas, it’s certainly possible. In fact, if you’re planning an extended caravan trip throughout Europe or North America, it might well be cost-effective to take your own caravan.
While exploring France, Spain and Germany from a caravan is a once in a lifetime opportunity, your insurance policy doesn’t necessarily cover your trip. Speak to your insurance provider about overseas coverage. You’ll likely need to take out a new policy to cover each of the continents you intend to visit.
Mistake #4: my insurance covers everything
Very few insurance policies will cover everything. Caravan insurance refers to trailers without engines—it’s not the same as a campervan or motorhome. Depending on your policy, it may cover:
- Theft
- Accidental damage
- Fire, storms, and floods
- Towing and storage
- Emergency repairs
- Temporary accommodation
- Third-party comprehensive
You may also negotiate content cover—for example, including food spoilage. As with car insurance, providers offer different levels. Choose a policy that suits you.
It would help if you also noted the start and end of your policy. Keep a copy in your car and make sure your trip doesn’t go beyond the end of your insurance cover.
In addition, take note of the weight limit. Caravans don’t have a lot of storage space, but many of us pack our trailers full while on the road. Many insurance policies won’t cover your caravan if it goes over a certain weight, so make sure you don’t accidentally invalidate your policy.
Mistake #5: touring and static insurance are the same
You’ll likely hear about both touring and static insurance—what’s the difference? Touring caravan insurance covers you while towing, traveling, and road-tripping. On the other hand, static caravan insurance covers your caravan while parked in one spot. If your caravan stays in your backyard or a holiday park, you’ll need static insurance.
If you’re unsure what type of insurance you need, speak to your provider. Generally speaking, your touring insurance should also cover you while your caravan is in storage during the winter months. However, it’s still good to check what your policy covers and what it does not.
Who Offers Caravan Insurance?
There are many insurance companies throughout Australia, including AAMI, Apia, NRMA, and RACV, among others. It’s sensible to check that you have the right level of insurance to cover your caravan, whether you tour with it or not.