Agreed value or market value decides your payout
Agreed value or market value decides what a total loss pays you, and you set it when you take out the policy.
- Agreed value locks in a payout figure when you buy the policy. If the van is written off or stolen, you get that figure less the excess, whatever used vans are selling for that week.
- Market value pays what the insurer assesses the van would have sold for at claim time. Caravans lose value fastest in their first years. Our depreciation guide puts a typical first-year loss at about 10 to 15%.
Ask what agreed value adds to the premium. Ask too whether the insurer lowers the agreed figure at each renewal, and check the figure on every renewal notice. If it is cut by 10% a year, for example, it soon sits close to market value.
The premium is one of several yearly costs. The rest are in our guide to what a caravan costs to run.
Touring, onsite and annex cover
Policies are priced and paid by how the van is used:
- Touring cover is the standard product, for a van that is towed, parked at home and taken on trips. Check that it covers the van while it is being towed. Note any conditions about leaving the van unattended at a rest stop.
- Onsite or permanent cover is a separate product for a van parked long-term at a holiday park. Some insurers do not cover onsite vans, and others need it declared. A touring policy can refuse a claim on a van that lives onsite.
- Annexes and awnings have their own limit, which is usually much smaller than the van's. A policy might cover the van for $90,000 but the annex for $2,000, which is less than a good annex costs. If you run a full annex, find the sub-limit before you claim.
- Storm positioning clauses: some policies exclude awning damage if the awning was left out and unattended in wind.
Contents cover and its limits
A touring van can carry thousands of dollars of gear: battery upgrades, inverters, TVs, e-bikes, drones and fishing gear. Policies differ most on contents:
- Total contents limit. Each policy sets a default total, and some let you raise it. Add up what travels in your van and check it against the limit.
- Per-item sub-limits. A $5,000 contents limit with a $500 per-item cap pays $500 on a $2,500 e-bike. Check the cap as well as the total.
- Fitted or carried. Gear fitted to the van, such as solar, batteries and aftermarket suspension, is usually covered under the van's sum insured if you declared it. An undeclared upgrade can be disputed at claim time, so tell the insurer when you fit it.
- Theft conditions. Ask whether contents theft cover requires forced entry. Gear stolen from an unlocked van or from outside the van (chairs, generators) may not be covered at all.
What can void a claim
The common reasons for a refused claim are avoidable:
- Towing overweight. Your insurer may look at your weights when you claim. Weights can be checked after an accident. Our tow calculator checks the car's side.
- Non-compliant setups. An unrated hitch, a missing breakaway system on a heavy van or expired rego can matter too. Your insurer may look at your setup when you claim.
- Undeclared use. This covers renting the van out under a private policy (even once, on a sharing platform), living in it full-time on a touring policy, or leaving it onsite all year. Each use has its own product, and the wrong one can put the whole claim at risk.
- Poor maintenance. Ask whether the policy excludes water damage from a slow, long-term leak. Some insurers treat it as a maintenance issue, so keep records of reseal inspections.
Insure a used van before you tow it home
Have cover in place before the first tow home. Ask the insurer whether cover can start the same day, and have the VIN (vehicle identification number) and your details ready.
- Buying privately? Cover does not transfer with the van, so the seller's policy does not protect you.
- For agreed value on a used van, insurers ask for the purchase price and sometimes photos or an inspection. Keep a written contract of sale (see our used buying guide).
- Declare the van's modifications from day one, including any the previous owner fitted.
Six questions to ask every insurer
Put these to every insurer you get a quote from:
- Agreed or market value, and what happens to the agreed figure at each renewal?
- What's the annex and awning sub-limit?
- What's the total contents limit and the per-item cap?
- Are my fitted upgrades (solar, lithium, suspension) covered at declared value?
- What's excluded while the van is unattended at a rest stop, in a storage yard or onsite?
- What's the excess, and does it change for storm or hail claims?
General information only. Nothing on this page is financial advice or a product recommendation. It lists the policy settings to ask about when you read a PDS. Read each policy's Product Disclosure Statement (PDS) and Target Market Determination, and think about your own circumstances before you buy. You can also talk to a licensed adviser.
Common questions about caravan insurance
What does agreed value versus market value mean for a caravan?
Agreed value locks in the payout figure when you buy the policy. If the van is written off or stolen, you get that figure less the excess, whatever used vans are selling for that week. Market value pays what the insurer assesses the van would have sold for at claim time. You choose one or the other when you take out the policy.
What does caravan insurance cover?
A caravan policy covers the van itself up to a sum insured. The annex and awning have their own limit, which is usually much smaller. What you carry inside is covered as contents, with a total limit and a cap per item. Policies are also sold by how the van is used, so touring, onsite and annex cover are priced and paid differently. Read those limits before you look at the premium.
Does caravan insurance cover the van while it is being towed?
Ask the insurer to confirm it in writing. The car and the van are covered by two separate policies, and neither one automatically covers for the other. Ask the same question about the van left unattended at a rest stop, in a storage yard and parked onsite. Insurers commonly treat those differently from a van under tow.
Can an insurer refuse a claim if the caravan was overweight?
Your policy wording sets out when a claim can be reduced or refused. Insurers may look at your weights when you claim. Weights can be checked after an accident, against the van's ATM and the car's tow rating. Insurers may also look at the rest of the setup. Examples are an unrated hitch, a missing breakaway system on a heavy van and expired registration.
How do I compare caravan insurance quotes beyond the premium?
Compare four settings as well as the premium. They are agreed or market value, the annex and awning sub-limit, the contents cap per item, and the excess on a storm or hail claim. Ask each insurer about all four in writing. Ask too what happens to an agreed figure at each renewal.