Compare Caravan Insurance

Our definitive guide outlines how caravan insurance works, the differences in policies between AMI, AA Insurance, Tower, State and Covi, and must-know facts and considerations.

Caravan Insurance Comparison NZ - AMI vs AA vs State vs Tower vs Covi

Updated 30 December 2021

Summary:

Caravan insurance is a standalone insurance policy. Major insurers such as AMI, Tower and AA offer policies for caravans of all ages and values.
Because of the variation in caravan models, usage and risks, it's not possible to obtain online quotes.
To get quotes, we suggest gathering your details (caravan make, age, approx. value etc) and contacting AMI, AA, Insurance, Tower, State and Covi to compare the different prices.
You can compare each insurer's policy offerings side-by-side below in our Caravan Insurance Policy Comparison by Benefit and Service table.
Our guide looks at policy benefits, exclusions and what to know about making a claim.

Our Caravan insurance guide covers:

Know This First: What is Caravan Insurance?

Caravan insurance is a type of insurance policy that protects you financially, in the event of damages to your caravan, if your caravan is stolen or if your caravan causes any property damage or injury to third parties.

Know This: If you have an accident driving your car with your caravan towed behind, your car insurance will pay out the damages for your car. But if your caravan is also damaged during the accident, your car insurance policy is likely to exclude caravan damage. For this reason, a separate caravan insurance policy may be required. Caravan insurance is unique, and several factors need to be considered when determining the level of cover. These include:

Is your caravan new?
What is its value?
If you were to repair or replace your caravan in the event of an accident, how much would that cost you?
Where will you be travelling and how are you going to use it?

Such questions need to be factored in when making comparisons with different caravan insurance policies and quotes. The policy cost will depend mainly on these factors.

Caravan Insurance Policy Benefits

Policy benefits vary depending on the insurer, but in general, getting a caravan insurance policy will cover for:

Damages or vandalism - if the caravan can be repaired to the same condition as before the damage occurred, the insurer will pay out the repair costs. However, if the damage dealt to the caravan makes it no longer economical or safe to repair, insurers will pay an amount up to the caravan's Market Value or Agreed Value.
Theft - the insurer will pay an amount up to the caravan's Market Value or Agreed Value.
Caravan removals - if the caravan cannot be towed due to damages or stolen-then-found, the insurer may pay the cost for the caravan to be moved to the nearest repairer or an agreed location.
Living expenses - if the caravan is deemed unfit to stay in, the insurer may pay for additional living expenses towards temporary accommodation for you and your passengers while the caravan is getting fixed or towed.
Transport expenses - if your caravan is stolen or damaged to the extent that it cannot be towed, the insurer may pay a reasonable amount to return your caravan to your place of residence.
Caravan contents - loss or damages to personal contents within the caravan may be covered by the insurer. This is optional and may require additional premiums.
Third-party liability - if a member of the public was injured or if your caravan causes damage to other people's property in the event of an accident, your insurer will cover that cost.

Exclusions To Look Out For

Exclusions to policies are things that the insurer will not pay out for. This is important to read when determining which policy to buy. These include:

Replacing parts that are not damaged
Paying for parts that may require air freight from overseas to New Zealand
Repaint work and/or additional costs to match existing paint - paint job only apply to areas that suffered damage
If another insurance has cover for the liability
Failure or breakdown as a result of mechanical, electrical or electronic reasons
Tyre damage from brakes or punctures (unless from specific reasons such as fire, natural disaster etc.)

Understanding Agreed Value vs Market Value

Caravan insurance policies offer two options - agreed value or market value. Both determine how much your premium will cost and how much your payout will be in the event of an accident. We outline both options below:

Agreed Value
This is a specific dollar amount you and the insurer agree to insure your caravan for. In most cases, the Agreed Value is reviewed after every renewal.

Pros:

Certainty and security on how much your replacement payout will be
Freedom to include costs of modifications and accessories
Balances out the effect of depreciation

Cons:

If your agreed value is above the market value, you'll pay a higher premium

Market Value
Choosing the Market Value option to insure your caravan means that the resale price will determine your replacement payouts, i.e. what your caravan is currently worth today. This value is based on the condition of the caravan: its make, model, age, deferred maintenance and any pre-existing damage.

Pros:

Budget-friendly as the policy costs are lower
Suitable for old caravans with little to no modifications
For well-known brands, insurers can offer a fair valuation so your market value is more accurate

Cons:

For people who have caravan loans, the replacement payout for market value may not cover the caravan's remaining repayments.
Market Value payouts are affected by the depreciation of the caravan.

Caravan Insurance Policy Comparison by Benefit and Service: AMI vs AA Insurance vs Tower vs State vs Covi

We compare five main caravan insurers in New Zealand based on the benefits provided. The key to choosing the right policy and provider is balancing out the scope of the policy and cover payouts with premium and excess payments. Make sure to look out for exclusives and optional covers that require additional premiums, such as contents cover or window breakages.

Benefit or Service	AMI	AA Insurance	Tower	State	Covi
Claims Assistance	Live chat and call centre available	Live chat, call centre and WhatsApp	Call centre available 7 days a week	Call centre available 7 days a week	Call centre available 24/7
Insure Option	Market Value	Agreed Value and Market Value	Market Value	Market value up to the sum insured	Agreed Value
Third Party Liability	Up to $20 million for property and up to $1 million for bodily injury	Up to $20 million for property and up to $250,000 for bodily injury	Up to $25 million for property and up to $1 million for bodily injury	Up to $20 million for property and up to $1 million for bodily injury	Up to $10,000,000
Living Expenses	Up to $300	Up to $500	None	None	Up to $700 a week, for 7 days
Transport Expenses	Will pay reasonable costs	Will pay reasonable costs	None	Will pay reasonable costs	Up to $1,500
Caravan Contents (Optional)	Will pay reasonable costs	Up to $2,000	Up to $5,000	Present value or up to sum insured	Up to $10,000
Caravan Removals	Will pay reasonable costs	Will pay reasonable costs	Up to $1,000	Will pay reasonable costs	Up to $500
Legal Defence Costs	None	None	Up to $5,000	Included as part of Third Party Liability costs	Up to $5,000
Policy Wording	Click here	Click here	Click here	Click here	Click here

Frequently Asked Questions

Does my car insurance cover my caravan?

In most cases, the answer is no. Car insurance and caravan insurance are separate policies.

If my caravan is stolen, how long does it take before my claim is considered a total loss?

This depends on your insurer, but generally, if your caravan has been stolen and not been found within ten days, it is considered a total loss. Your insurer will give you a replacement payout based on the Agreed Value or Market Value.

Are contents in my caravan covered in an insurance policy?

This depends on the insurer; however, contents cover is an optional add-on in most cases. To have security that your contents will be protected, you may be required to pay an additional premium. To reduce the likelihood of items being stolen, make sure that you:

Always keep your caravan locked - this prevents thieves from entering your caravan.
Hide valuables from plain sight - having items out in the open can become attractive targets for thieves. Leave any important items at home if you don't need them.
Invest in security devices - if possible, buy wheel clamps or hitch locks when you've parked your caravan. This can reduce the chances of thieves driving off with your caravan. Another idea worth considering is to add a tracking device or a security camera.
Take photos - it's a good idea to take photos of the interior and exterior of your caravan so you have photographic evidence that you can provide your insurer after an event.

Claiming on Caravan Insurance

Before lodging a claim:

Contact the police in the case of theft, burglary or malicious damage (or attempts on any of these)
Contact your insurer immediately if any offence was charged due to loss of property or bodily injury to someone else, as well as giving full details about what happened and details of everyone involved.
Make sure to prevent any further loss, liabilities and damages from occurring.
Request permission from your insurer before arranging any repairs or replacements and any other expenses that relate to your claim

After lodging your claim:

Allow your insurer to inspect the damaged caravan and assess repair costs.
You may be required to pay applicable and additional excess for each event.
Have ready any documents for proof of ownership and proof of purchase on all the items being claimed for, if requested by your provider

Settlement of your claim

Once your insurer has accepted your claim, the settlement method will be decided based on a holistic assessment of the situation, including the state of your caravan.
Your provider can either choose to repair your caravan from a chosen repairer, pay the costs for you to repair your caravan or make a replacement payout if the caravan was stolen or is in an irreparable state. Most likely, the settlement value will be the least out of the options.

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