Accident claims and laxity of registration heighten need for caravan insurance

For a small percentage of overall holiday costs, people can find peace of mind,

Over 50,000 people joined the UK's two leading caravan organisations, Caravan Club and the Caravan & Camping Club last year, and the season is now in full swing. But as they prepare to take to the roads this summer, caravan owners should be aware of the need for insurance. One-third of all accidental damage claims last year were caused by drivers losing control of the caravans, often by going too fast and not knowing how to correct the situation, according to Peter Melichar, claims manager of Jardine Insurance Services.

Caravans can also be hot properties in the legal sense. Every year 3,000 caravans are stolen, and only 2.75 per cent are recovered, because once the number plate has been removed or changed, it is very difficult to establish ownership. Many are whisked off abroad or driven some miles away and, without a 24-hour national database of registration details, become untraceable.

The situation is so bad the RAC, along with other caravan organisations, has called for a national caravan register linked to the police computer network. They would like this to be government backed, but approaches last year were met with a negative response.

SPI, a firm of specialist loss adjusters dealing at the moment with between five and six claims a day for stolen caravans is hoping to set up its own Nationwide Caravan Register this autumn. For a one-off fee of pounds 55, it would provide a registration document to the caravan owner and a unique system of marking, whereby the owner would mark in one spot universal to all caravans and in three other places only known to him or her and the Register.

One alternative in operation at the moment is CRIS, the Caravan Register Information Service, which is run by the HPIA (Hire Purchase Information and Autodata) on behalf of the National Caravan Council. Any caravan manufactured after April 1992 has its serial number linked to the register, but this is only available during office hours and is not linked to the police computer.

Christine Ellis of the Caravan Club says, "in theory it is a wonderful idea. The National Caravan Council has about 98 per cent of caravans built since 1992 registered, which is a start, but not all manufacturers are members of the Council, and it does not cover the many older caravans or any caravans manufactured abroad".

There are a number of security devices on the market but they are not fool-proof. Hitchlocks can be bypassed and most wheelclamps, except the bulldog wheelclamp, are useless if the caravan's tyres are let down.

Although it is a legal requirement for people to insure their cars, there is no similar legislation with regard to caravans. Should one come adrift and damage a car following, you would be covered by your own car insurance, but if it is stolen or damaged you have no redress. "What happens is that young families invest pounds 6,000 to pounds 7,000 on a caravan to get a holiday and then cut costs by not taking out insurance," says a RAC spokesperson.

The RAC Insurance Service offers flexible caravan insurance so you need not pay for contents if you already have cover under your insurance. The basic cover is for the caravan and fitted equipment, plus you can choose exactly the cover you need from options including personal effects, ancillary equipment such as awnings, and loss of hiring charges. The premium is pounds 2.75 per pounds 100 insured for the caravan and fitted equipment.

Kate Norman of RAC Insurance (now part of Guardian Direct) says: "Our main areas of insurance are for sums between pounds 2,500, which would be for a second-hand caravan and pounds 10,000 for a good new one," The premium for pounds 5,000 insured would be pounds 137.50. A 10 per cent discount is available for RAC members.

The Caravan Club has two levels of insurance, both of which include caravan and contents together. Standard cover includes contents of up to pounds 13,000 with a maximum value per item of pounds 325 and loss of use expenses for a pounds 5,000 caravan and equipment of pounds 24 per day. The premium would be pounds 157 per annum for this sum and pounds 200 for pounds 6,000 insured.

Drewe Insurance specialises in caravan insurance and has a new touring caravan insurance this year which includes a no- claims discount and special rates for the over 50s. You get a 10 per cent discount for three claim- free years and a 10 per cent discount if an alarm is fitted.

The premium is pounds 3 per pounds 100 insured for over 50s, pounds 3.75 for someone aged between 40 and 49 and pounds 3.90 if you are under 40. The standard premium for pounds 5,000 insured for someone under 40 would be pounds 195.

Another specialist, Bakers of Cheltenham, offers an Economy Caravan Insurance through Avon Insurance, which includes loss-of-use cover up to 3 per cent of the sum insured per week for up to three weeks in any one year but does not include any valuables such as jewellery, cameras or watches. The premium is pounds 2.45 per pounds 100, so a standard premium for pounds 5,000 would be pounds 122.5 or pounds 112.50 if over 50 years old.

The Entertainment & Leisure Insurance Group has been offering insurance for caravans for 60 years. It has relaunched its product with a special offer of three free months for a new policy holder. In the first year you would pay pounds 108 for pounds 5,000 insured, thereafter pounds 144.

The Caravan Club: 01342 326944

The E & L Insurance Group:

01423 330711

Bakers of Cheltenham:

01242 528844

Drewe Insurance: 01299 401663

RAC Insurance Services:

01462 444667