Trying to save money on your caravan insurance - first know your value.

Many caravan owners spend hours filling in online quote forms to try and save money on their caravan insurance. If they did a bit of home work on the value of their caravan first they could make major savings. Perhaps more importantly they will have the peace of mind that come from knowing they have their caravan insured for the correct value.

Caravan Insurance is in most cases based on a rate per £1,000. If you over insure your caravan ie insure it for more than it is worth you are just wasting money. Many people insure their caravan for market value and then neglect to change this value when they renew their insurance so over the years the amount you are wasting goes up and up as the value of their caravan goes down.

Our tip is to make sure that you value your caravan and equipment accurately. You don't want to under insure it as if you need to make a claim this can result in you not receiving a full pay out. If you caravan is written off in an accident or fire or is stolen and not recovered then if you have under insured it you may not get enough to buy a replacement. If you have to make a claim for a significant repair and the insurer finds that you have under insured the caravan they may average the claim. If for example you have you caravan covered for 80% of its real value they could pay 80% of your claim for a repair.

If you over insure it and suffer a total loss you will only be paid what the caravan is actually worth at the time of the loss, so there is absolutely no point in over insuring it. In fact all that over insuring does is cost you money in your insurance premium, an absolute waste.

Some quote systems ask you to enter the value of your caravan separately from equipment some like Caravanwise caravan insurance ask for a value for the caravan and equipment added together.

Market Value
The market value of your caravan is how much it would cost to replace it with the same model, year and condition. This varies between retailers and private sales and there is some variance in different parts of the country depending on supply and demand. If you got an absolute bargain by buying private or from a friend or family member you may have to insure your caravan for a little more than you paid for it to ensure you would be paid enough to replace it. The first step in establishing the market value of your caravan is to find out the replacement value of the caravan on its own. Your equipment including awning, gas bottles, water system, batteries etc. can be valued as if new. Some policies make a deduction for wear and tear on these items but generally if they have to be replaced then you will have to replace them with new items.

New for Old
If you qualify for New for Old cover and want to take this option then you have to insure your caravan for the full replacement value of a new one of the same make and model (or nearest equivalent if that one is no longer manufactured) plus delivery costs. It is generally recommended that you use the full list price. Many dealers and manufacturers have special offers at certain times of the year, particularly at shows. If you have to replace your caravan at a later date you may then end up paying the full list price.

Trigger points
If you understand something of how discounts work on caravan insurance quote systems you can save yourself considerable money. For example on some systems caravans below a certain value will benefit from a discount. If the replacement value of your caravan and equipment is £9,950 don't be tempted to round it up to £10,000 as that may be the point at which the rate per £1000 increases. Try to be exact to get the best value for money.

If you value your caravan and equipment accurately you are in the best position to ensure that you are at the same time both fully covered and paying the lowest caravan insurance premium available to you.

Caravanners - Check your nuts!

As the summer draws near caravanners are being reminded to check that the wheel nuts on their caravan are tightened correctly. In times of recession the frequency of dealer servicing drops to save money and this puts caravans in a vulnerable place in terms of losing a wheel at speed.

Phil Holden MD of Caravanwise the caravan insurance specialist said "Occasionally we have an insurance claim from a caravan owner who has lost a wheel. This can become a major problem if the loss occurs while the caravan is being towed at 50 MPH.

If this causes significant damage to the caravan it will lead to a large claim and we may send out a loss adjuster to investigate the cause. We had one recent case where the owner admitted to never having checked the torque of their wheel nuts".

The job of checking that the wheel nuts are tightened to the correct torque should be done when the caravan is serviced, but that isn't often enough. The caravan owner really needs to check them every time they are going to tow their caravan. While the wheel nuts should be tight they shouldn't be over tightened as that may stretch the studs and possibly lead to an early failure.

Most caravanning experts recommend that the caravan owner carries a torque wrench with them, learn to use it correctly and use it to regularly check that their wheel nuts are tightened correctly, particularly after they have had to change a wheel.

If the caravan owner does have to change a wheel there are a couple of things to consider with regard to wheel nut tightness.

1. Tighten the wheel nuts in a diagonal sequence and check that they are to the correct torque before towing the caravan.

2. After having driven for 20 to 30 miles or for about 30 minutes stop and check the torque again.

For caravanners planning to buy a torque wrench it is best to get one that goes up to at least 110 Nm as this is the most common torque setting for wheel nuts on caravans and cars with alloy wheels, for steel wheels 88Nm is most common. The caravan owners manual will have the correct setting or they should ask their dealer for the correct setting for their caravan. There is no need to spend a massive amount on a torque wrench. Machine mart in the UK offer one which is reputed to be of reasonable quality for less than £20. It is 1/2" drive and covers the range 28 to 210 Nm.

It is an easy job to check the torque of wheel nuts and really should be done before any major trip. This will significantly reduce the chance of losing a wheel and the disruption and cost that this will cost.