Caravan Insurance Average Cost: Rates, Figures & Premiums

Caravan Insurance Average Cost: Rates, Figures & Premiums

Caravan insurance companies tell us that the higher the premium paid, the more coverage you get. But, the amount charged as a premium by these companies is not uniform. Each company proposes a rate that is different from their rival – some are higher, some are lower.

For us caravan owners, our basis for selecting an insurance company to provide cover is the premium. We tend to see the premium to be paid as the deciding factor for who to sign a contract with. Now, how do you know if your caravan insurance is a good investment in terms of its cost?

We did some research on the caravan insurance online rates. The average cost fluctuates according to the market conditions, but it can still serve as a basis for comparing rates offered by insurers. The information on caravan insurance average cost is still relevant to know and use when you discuss with an agent or a broker in trying to get yourself a better deal. It is especially important when you are looking for the best quotes from caravan insurance online.

However, we do not want to just tell you how much to pay. What you are paying for is also important regardless of whether the rates are cheap or expensive. Cheap premiums do not cover a lot, but paying a higher premium does not always guarantee you get much more.

Glossary of terms used

  1. Sum insured: this refers to the maximum amount to expect from an insurance company to replace your caravan.
  2. Premium: the price you pay  for your insurance.
  3. Insurance Claim:  is a formal request made to your insurer for compensation for a policy event or covered loss.
  4. Damages: this is an award given to the suffer of a loss. It is usually in monetary form and serves as compensation for a loss suffered.
  5. Excess: the excess serves as a contribution you are expected to pay towards any claim made on the caravan insurance policy.

Factors that Determine Caravan Insurance Rates

Ever wondered why the cost of caravan insurance varies from one insurance company to the next? There are several factors that determine this. Caravan insurance rates will reflect the following:

  • theft and safety statistics for your area
  • the safety features of the caravan
  • the make, model and year of the caravan
  • the number of years you have been driving a caravan
  • the purpose you use the caravan for
  • past offences you have had inclusive of past at-fault insurance claims.

Rates of Caravan insurance online

Let’s look at the average caravan insurance cost for big insurance companies such as Suncorp and Allianz. Let’s start with figures.

The average caravan insurance cost for GIO, a group under Suncorp, is about $560 yearly. The highest premium: sum insured was $80,750 and the lowest was $7,000. The sum insured is the maximum amount to expect from an insurance company. This is a broad range in price from GIO. The premium paid annually is from above $200 to slightly higher than $1,000. Most of the insurers go for $700 premium which covers the sum insured in case of damages.

Another company under Suncorp aside from GIO is CIL. The average insurance cost in this company is $800 with the ratio of premium ($683.86) to sum insured ($38,000) at 1.8%. The ratio is pretty stable from one insurer to another, but it fluctuates at times where some hit as high as 2%. CIL is reckoned to have more insurers that pay a much bigger premium than GIO.

GIO and CIL mostly only cover caravans.. If you are looking for the price of insurance that also covers a 5th wheeler or a motorhome, you’ll need to look at Ken Tame. Ken Tame is a subsidiary of Allianz and helps cover the damages on your motorhome, too. With an average annual premium at more than $1,300, this company covers your damages on the average of $125,000.

Knowing the right figure for you

We can see that insurance companies are offering rates on a wide scale and there is also excess to consider. The excess serves as a contribution you are expected to pay towards any claim made on the caravan insurance contract. To make it easier, we have helped you narrow down the choices with these following guidelines.

First thing first. What is your caravan used for? Before companies make a contract with you, they also want to know the kind of places and terrains you are mostly likely to take your caravan to. Some people are quite hardcore; they like to take their caravan to places prone to cyclones.

If that is you, look for an insurance package that covers all parts of your caravan in case of major natural disasters like that. If that is not you, think about where you use your caravan the most and what kind of damages that often happen on the trip.

Some companies provide lower premiums in exchange for a higher excess of more than $999. Others charge higher premiums, but only require you to pay $100 in excess. To figure this out, check your savings. Are you the type who likes to have enough savings in your account? In the event an incident occurs and it costs you $20,000 in damages, you will soon realise that $1000 excess is not worth it. Why? Because if you saved the money instead of paying premiums then you would have an additional $5,000 ($1000 excess + $4,000 saved).

High excess also means you do not claim as often. You would not want to place a claim for anything lower than $1,000. High excess goes along with a higher sum insured, or it wouldn’t be worth it. For example, if you do not have any incidences that require paying a lot of money in the next 10 years, that is equal to $24,000 of the bill paid.  This is calculated by a $200 premium x 12 months x 10 years. In the event that something happens, and you didn’t havecaravan insurance and need to pay a hefty sum of $20,000, you can see you would be better off without it..

Cutting down premiums

There are certain steps you can take to reduce the amount of premium paid and these are as follows:

Secure your van.

The first thing insurers want to see is that their clients are not purposely putting their vans at risk to get a claim payout. There is nothing we can do when a cyclone carries our van across the field and flips it upside down. But you definitely could have prevented your van from rolling down the street, right?

Having safety measures such as wheel clamps and a hitch lock will help the company give you more options.

Haggle.

After knowing the rates the insurance company has to offer, it is time to tell the company that they’re not offering the best deal. Usually, insurance companies state a slightly higher price than the market rate in a bid to meet their margin of profit. Some customers fail to do their research and end up with these high rates. But, if you make it known to the insurer that their offer is not in line with the market, it opens room for discussion.

Companies don’t want to lose clients and, truthfully, you could’ve just switched to that lower premium company. But haggling means you’re giving them a chance to ‘redeem’ their price.

You can do this every year or when you find a price increase on your premium. Checking out other companies and telling yours that you’ve found a better company will make them reconsider their actions.

No-claim bonus.

This one is granted to those who’ve been with their company for a long time without claiming. It is sort of a thank-you discount for not spending the company’s money yet.

Membership.

Being a member of certain organizations will bring you a lot of benefits including cheaper premiums.

We are happy to say that AllBrand Caravan Services are Preferred Repairers for some of the major insurance companies such as: GIO, CIL, Suncorp, Alliance, RAVC, etc. Call us at (07) 3869 2969 or visit Insurance Repairs to get your quote!