March 29, 2024

Is caravan insurance worth it? 

By Bethan Harper

Featured image for “Is caravan insurance worth it? ”

Owning a caravan can provide years of holiday fun and the opportunity to explore new and exciting places. However, purchasing a caravan also usually comes at a large expense. And, making such a large purchase begs the questions, what can I do to protect my investment and is caravan insurance worth it? 

Caravan insurance can protect you financially during travels and provide peace of mind by serving as a safeguard for your home away from home, ensuring you are covered in case of any unforeseen events.  

However, since caravan cover is not legally required in the UK, it’s often overlooked as an unnecessary expense that can be avoided. But is this actually the case? 

In this article, we’ll explain more about what caravan insurance is, what it will cost and we’ll try to answer the question ‘Is caravan insurance worth it? 

Jump straight to a specific section or read on for the full piece: 

Is caravan insurance worth it?
Caravan camping at a caravan park.

What is caravan insurance and what does it cover? 

Caravan insurance is an insurance policy designed specifically to help you protect and maintain your caravan.

As a result, policies are designed to offer financial protection against some of the incidents caravan owners are most likely to encounter.

And, while policies can differ slightly in regards to what they cover, their restrictions and exclusions and prices, most commonly caravan insurance protects against:

  • Theft
  • Fires 
  • Lightning 
  • Explosion 
  • Earthquake 
  • Storm 
  • Flood 
  • Accidental Damage (to the caravan only) 
  • Malicious persons
  • Vandalism 
  • Theft or attempted theft

Some policies will also cover any personal belongings kept within your caravan. That way, should anything be damaged or stolen, you’re covered.

Moreover, caravan insurance may offer public liability coverage (financial protection should anyone be injured in your caravan) and loss of use cover (this will cover you for alternative accommodation if your caravan becomes unusable).

Some providers will also offer optional extras that you can choose to add to your policy, such as breakdown assistance, legal expenses coverage, and European travel coverage.


Also see: Static caravan insurance explained


How much does caravan insurance cost? 

Depending on which provider you choose, the extent of coverage you need, whether you own a touring or static caravan and the features included in your policy (among others) can all impact the price of caravan insurance policy premiums.

Therefore, how much caravan insurance will cost you could change depending on your circumstances.

But, to give you an idea of how much you could expect to pay, at Save More Money our static caravan insurance starts from £65 +IPT and our touring caravan insurance starts from £75 +IPT.

What is IPT?

IPT stands for Insurance Premium Tax, which is a tax paid on general insurance premiums.

I rent my caravan out to holidaymakers; can I still purchase insurance? 

Holiday rentals are a common earner for caravan owners. However, lettings are sometimes excluded from insurance policies.

Whether holiday lettings impact your insurance will depend on which insurer you choose and what type of policy you’d like. Therefore, it’s always important to check the policy wording before you purchase coverage.


Also see: Do I need touring caravan insurance?


Do I need caravan insurance? 

As we previously mentioned, caravan insurance isn’t a legal requirement. So, you have no obligation to purchase a policy.  

However, that doesn’t really answer the whole question as there might be some places where you do need to have a policy.  

For example, it’s not uncommon for caravan parks and camping grounds to stipulate that all owners must have taken out an insurance policy against their caravan in order to stay on their site.  

And, while it’s possible you’ll find a site that will accept caravan owners without insurance, your options will be more limited. 

Is caravan insurance worth it?
Is caravan insurance worth it?

Is caravan insurance worth it? 

Since caravan insurance isn’t required by law, we can’t tell you whether caravan insurance is worth it for your particular situation.

However, there are some things to consider when weighing up your options. For example, how much money you could save.

Non-mandatory insurance policies are all too often seen as an unnecessary extra expense. And while taking out an insurance policy will give you an additional expense in the short run, it could save you money in the long run.

Let’s do a quick calculation:

Without caravan insurance, the cost of repairing damp caused by flooding could be as much as £100-£225 per repair (Checkatrade, 2023).  So, with an annual insurance cost of £65 (+IPT), taking out a policy could actually save you up to £160 per claim.


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