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.
Updated 4 September 2021
Summary:
Our Caravan insurance guide covers:
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. We suggest gathering your details (caravan make, age, approx. value etc) and contacting AMI, AA, Insurance, Tower, State and Covi to get quotes.
- 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:
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.
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:
Cons:
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:
Cons:
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 |
|||||
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 |
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:
After lodging your claim:
Settlement of your 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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