A pleasant surprise in the post this weekend from the Caravan Club. Our caravan insurance has gone down. Bit of a shock really when you consider all our other insurance, car, house etc has gone up. Only about 60p per month but better than a rise. Well pleased
Not all happiness on the insurance front though, my youngest Daughter passed her driving test last week so her insurance has shot up. The Bank of Mum and Dad takes a big hit.
We have been informed by our insurers that indeed our premium will be cheaper this year than it was last, but the reason being that our caravan will be five years old and no longer eligable for the new for old policy, so we will just be paying for the standard cover which will decrease each year as the caravan depreciates in value.
Theres no plans to ever change our van in the forseeable future, we are happy with what we have got, and when the hitching/dehitching finally gets too much for us oldies lol we will then and only then consider trading it in for a small motorhome.
Julia
------------- Just love to be out amoungst Nature and Wildlife
Celebrating 37 years of Caravanning in 2019, Recently Considered Retiring, but Totally Addicted for Life!
my car insurance has gone up £74 when i asked why no reason apart from high claims from other drivers on the insurance co.CClub.more or less said pay or look somewhere else.
------------- the only silly question is the one you do not ask.
My Caravan Club caravan insurance went down a bit this year. I think because they have a no claims system so the cost will go down until you have exhausted the amount of discount. I know from the Caravan Club annual report that they have been finding the caravan insurance market more competitive so this is obviously how they are responding.
Quote: Originally posted by David Klyne on 07/3/2011
My Caravan Club caravan insurance went down a bit this year. I think because they have a no claims system so the cost will go down until you have exhausted the amount of discount. I know from the Caravan Club annual report that they have been finding the caravan insurance market more competitive so this is obviously how they are responding.
David
This all sound like a bit of good news. Sadly, it won't make up for the hike in diesel cost, but there you go!
Theoretically, your insurance should reduce in cost each year due to the fact that the caravan loses value each year it gets older and so is actually worth less which the insurance cover should reflect this. In other words, if you happen to make a claim the insurance will only pay out to what the value of the unit regardless of how much you paid on the policy. If my caravan insurance increases I always phone them and ask why. When their respond by stating that it is due to the cost of living it however doesn't reflect the devaluation of the caravan and therefore should in fact be less. The fact of the matter is that they just manipulating the system to get you to pay more but if you don't respond with a constructive reason as to why it should be cheaper then they will assume that you have accepted the increase and charge you more to make a bigger profit.
Theoretically, your insurance should reduce in cost each year due to the fact that the caravan loses value each year it gets older and so is actually worth less which the insurance cover should reflect this. In other words, if you happen to make a claim the insurance will only pay out to what the value of the unit regardless of how much you paid on the policy. If my caravan insurance increases I always phone them and ask why. When their respond by stating that it is due to the cost of living it however doesn't reflect the devaluation of the caravan and therefore should in fact be less. The fact of the matter is that they just manipulating the system to get you to pay more but if you don't respond with a constructive reason as to why it should be cheaper then they will assume that you have accepted the increase and charge you more to make a bigger profit.
Ahhh! Not necessarily. If you have 'new for old' cover, then you need to be insured to the replacement value of a new van. As the price of replacing your van with a new one goes up, then the amount you will be insured for (under a new for old policy) should also go up, hence a possible increase in premium.
On top of this you get no claims bonuses, which might level it out for some people.
When our previous van was stolen and therefore we claimed a 'total loss' and was provided with a new van we lost some of our no claims years. Over the next few years, in theory, the cost should fall, as we regain the no claims %. But as the cost of replacing the van rises, and therefore the total amount we are insured for, I expect it will come out at about the same.
When we come to renew our caravan policy, I ring them up every single year. As we have a new for old policy, I think the Caravan Club have a list which tells them how much it would be to replace your van new, like for like. I use this as a guide in deciding the amount of cover I need for the following year. If you don't have a new for old policy, then it must still be worth ringing. They will probably be able to advise as to what the total loss would be on the van for market value.
In my experience, when you get a renewal, they will put the same figure insured as the last year. Whether you have a 'new for old' or 'market value' policy, it should be worth adjusting the amount insured each year so that you are not over or under insured.
I thought that a 'new for old' policy only covered caravans up to 5 years old. In that case I can see the justification for the increase by the insurance company and this would apply in respect of the value, but operating on my personal budget I couldn't consider purchasing a new van anyway so I wouldn't have an option of this type of policy unfortunately.
Quote: Originally posted by tango55 on 08/3/2011
I thought that a 'new for old' policy only covered caravans up to 5 years old. In that case I can see the justification for the increase by the insurance company and this would apply in respect of the value, but operating on my personal budget I couldn't consider purchasing a new van anyway so I wouldn't have an option of this type of policy unfortunately.
Not sure off hand, but I have a feeling that the Caravan Club's 'new for old' can cover vans up to ten years? The way things are going at the moment, we're not going to be able to afford to put the diesel in the car to pull the caravans that far, let alone afford the insurance. I know what you mean...
Our insurance with the C&CC has now reached rock bottom at £47 per year. It is 16 years old and has reduced each year until now and it won't go any less. I don't think we will be getting new for old!!!!!
Quote: Originally posted by tango55 on 08/3/2011I thought that a 'new for old' policy only covered caravans up to 5 years old. In that case I can see the justification for the increase by the insurance company and this would apply in respect of the value, but operating on my personal budget I couldn't consider purchasing a new van anyway so I wouldn't have an option of this type of policy unfortunately.
Not sure off hand, but I have a feeling that the Caravan Club's 'new for old' can cover vans up to ten years? The way things are going at the moment, we're not going to be able to afford to put the diesel in the car to pull the caravans that far, let alone afford the insurance. I know what you mean...
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Topic: Insurance gone down!
