Insuring that caravan?

The summer holidays are here and millions of Brits will be off on their holidays over the next 5 weeks. This year around 2 million will be taking to the road with a caravan in tow, accounting for nearly 20% of holidays taken in the UK.

But figures from insurer, Towergate, show that 28% of caravan owners won't bother to insure their caravans.

Unlike motor insurance, caravan insurance isn't compulsory. However, neglecting to insure may prove to be a false economy. One in ten caravanners have made a claim in the last three years and of those three quarters have claimed for accidental damage and 13% have claimed for either theft of, or from, the caravan.

Towergate's research showed that the main reason given for not taking out insurance was the (low) value of the caravan (45%) followed by the fact that the caravan isn't used very often (27%). While caravanners may believe they can cover the cost of a theft or a bit of damage to their own caravan, an accident may leave them liable for a great deal more if they cause damage to a third party vehicle or property.

Dave Sheath, managing director of caravan insurance specialist, Towergate Bakers says:

"We were alarmed to see from our research how many people were not taking out insurance.

"Not only can some of the top of the range caravans set you back well over £20,000 if they are stolen, the damage you can cause to third parties can be enormous."

Caravan insurance starts from around £100 and with a good insurance policy you'll be covered for the value of replacing stolen goods, cost of repairs and for substantial third party liability.

19 July 2007 © Moneyextra.com

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