Caravan owners have plenty to think about when they hit the open road, from caravan parks and fuel stops to crucial vehicle and safety checks – not to mention that all-important road trip playlist.
So, for one less thing on your mind when you’re on the road, it might also be worth checking that your caravan insurance is up to date and adequate for the coverage you require.
With around 800,000 caravans and campervans registered in Australia,1 it seems our love affair with exploring our own backyard is showing no signs of slowing down. According to the Caravan Industry Association of Australia, the March 2023 quarter saw Aussies take 4.5 million trips, spending a total of 18 million nights caravanning and camping.1
If you’re an Aussie caravan lover, read on for a look at the different types of caravan and trailer insurance, what you might be covered for – including loss or damage to your caravan – and how to know what coverage you might require.
What is caravan insurance?
Depending on the type of policy you choose, your caravan insurance could cover damage caused to your caravan by a range of events such as fire, theft and natural disasters. Some policies may also include coverage for the contents of your caravan, up to a certain amount, and even food spoilage or the costs of towing.2
Is caravan insurance really necessary?
If you don’t use your caravan year-round, you may be wondering if it’s worth having caravan insurance at all. This depends on your individual needs, location and situation, but even if you only take a few road trips here and there, there are a couple of reasons why it might help to be covered on and off the road.
For example, depending on the type of policy, caravan insurance could cover you for unexpected events such as fire or theft, which could occur when your caravan is at home, at a caravan park or in storage.2
What are the different types of caravan insurance?
Like most types of insurance, there are different policies depending on the level of coverage you’re looking for.
Comprehensive caravan insurance
This is generally the top level of coverage available. Youi’s Comprehensive caravan insurance includes cover against fire, theft, earthquakes, storm or flood, and accidental and intentional damage. We’ll also insure a replacement caravan (or trailer) for up to 14 days from when you’ve sold or given your current caravan or trailer away.3
Third party fire and theft caravan insurance
Youi’s Third Party Fire & Theft caravan insurance includes cover against fire and theft, and damage to another person’s property.4 We’ll also cover you for up to $1,000 if the contents of your caravan or camper trailer are damaged or lost when you’re involved in an insured event.5
Third party property only caravan insurance
Third Party Property Only caravan insurance is the most basic level of caravan cover available at Youi, and includes cover for damages your caravan or camper trailer causes to someone else’s property.6 Damage to your own caravan isn’t covered at all.
Can I upgrade my insurance coverage?
Not everyone’s circumstances are the same, so it might be a good idea to look at any optional extras that might be available with your caravan insurance policy. Common add-ons include caravan contents upgrade, business items and coverage for loss or damage to your caravan’s annex in an insured event. The team from RV Daily advises not assuming your annex is automatically covered in your policy.7 A good way to check what’s covered in your policy is to read the Product Disclosure Statement.
How much does caravan insurance cost?
The cost of your caravan insurance will be determined by a number of factors, including:2
- The type and level of cover you choose – comprehensive caravan insurance typically comes with a higher price tag than the other types of policies; however, it also provides the most coverage. If you choose to take out any optional extras, this could also add to your premium.
- Sum insured – your insurer may offer agreed value or market value when determining the sum insured for your caravan. Market value is the value that your insurance company perceives your caravan to be worth at the time you need to claim. Agreed value is a different value that you both agree on for the term of the insurance policy (usually 12 months).7 At Youi, with a Comprehensive or Third Party Fire & Theft policy, you choose the insured value of the caravan.
- Level of excess – the excess is the amount you agree to pay out of pocket when making a claim. If you choose a higher excess, this will tend to lower your premium.2
Is my caravan covered by car insurance?
If your caravan was involved in an accident and caused injury or death to another person, compensation claims could be covered by your car’s compulsory third party (CTP) car insurance policy, provided the caravan was in a roadworthy condition and was being towed by a registered car.2
However, it’s important to bear in mind that CTP cover is limited and, in the case of an accident, only covers liability for injuries or death caused to other people.8 It does not cover your property or the property of others.
While CTP car insurance is a legal requirement, caravan insurance is not compulsory. However, it’s worth remembering that having no insurance on your caravan will mean that you’ll have to fork out your own cash if your caravan is damaged in an accident.
How do I get caravan insurance?
When starting a quote for caravan or trailer insurance with Youi, you’ll need a number of details including the make, size and year of your caravan or trailer to make sure your policy and premium are accurate.
You’ll also need to specify whether your caravan is used for private or business purposes and where your caravan is usually stored as this can also affect your premium.
For more information on choosing caravan and trailer insurance that’s right for you, consider starting a quote online. Or, you can speak to one of our friendly advisors on 13 9684.
1 Source: Caravan Industry Association of Australia – Caravan & Camping Holidays Surge in Face of Economic Uncertainty, 2023
2 Source: Canstar – Caravan Insurance, 2023
3 Available with Comprehensive policies. For more details, see our PDS.
4 Available with Comprehensive and Third Party Fire & Theft policies. For more details, see our PDS.
5 Available with Comprehensive and Third Party Fire & Theft policies. Limits apply. For more details, see our PDS.
6 Available with Comprehensive, Third Party Fire & Theft and Third Party Property Only policies. For more details, see our PDS.
7 Source: RV Daily – Complete Caravan Insurance Buyers Guide – Everything You Need To Know, 2022
8 Source: Moneysmart – Choosing car insurance
