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.
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