Towing the line
22 Oct 2018
Caravan insurance differs from regular car insurance, so make sure you’re covered when it comes time to hit the road.
Circling Australia in a campervan is part of the retirement dream for a lot of people. But the dream can quickly turn sour if something goes wrong. Repairs can put a serious dent in your budget and you can get stuck in the back of beyond waiting for them to be completed. Or worse still, your home-on-wheels may be declared a goner.
Caravan, campervan, camper trailer or RV insurance can ensure you’re covered for life’s little misadventures. While it can be tempting to pick the policy with the lowest premium, it’s more important to make sure it’s appropriate for your needs. Turn over for five steps to help you on your way...
1. Think about how you will use the van
Are you planning to travel in it continuously for a year or two? Or will you only use it for three or six months of the year, or the occasional trip?When the van is not in use, where will it be stored or garaged?
2. Compare the product disclosure documents of various policies
You may have received a recommendation from a fellow grey nomad or some marketing material from an insurer. Next step: get product disclosure documents for policies from a range of insurers. These are a mine of information and will tell you what is covered and what’s not.
3. Check out the policy’s inclusions and exclusions
While your van may be covered if it is stolen or damaged by storm, hail or flood, there are other circumstances that are excluded. For instance, if you hire or rent your van to someone else, it won’t be covered. Leave a window or skylight open during a storm? If that damages the van, you’re unlikely to be covered.
While the van itself may be covered, you’ll need to read the fine print to see whether cover extends to your annexe.
Find out what will be covered if the van needs to be towed to your home or to a place where it will be repaired. Will any accommodation costs be covered if you’re unable to stay in your van?
4. What is covered in the contents section?
Contents are the household goods inside the caravan, such as unfixed furnishings and fittings; pots, plates and glasses; clothing; and personal effects. The policy may cover up to a fixed limit, say $500 or $1,000. Think your contents are worth more? Some policies will allow you to pay an additional premium to insure for a higher value.
Again, check the policy’s exclusions. They may include mobile phones and accessories; musical instruments; motorbikes; push bikes; and other sporting equipment, such as surfboards.
5. Decide on the policy that best suits your needs
When you’ve decided on a policy, you can then start thinking about ways to reduce your premium. You may, for instance, be happy to pay a higher excess in the event of a claim. Or if you already have several policies with that insurer, you may be entitled to a multi-policy discount.
While your van may be covered if it is stolen or damaged by storm, hail or flood, there are other circumstances excluded – e.g., if you hire or rent your van to someone else, it won’t be covered
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