
Cheaper Caravan Insurance
This is the latest in our posts to offer tips to help you find cheaper caravan insurance. Today we look at the excess of a policy.
Caravan insurance has what is called an excess attached to it. This means that if you were to claim against your policy for any reason you would receive how ever much you claimed for minus the amount of your excess. For instance if your excess is £200 and you make a claim for £500, if your claim is approved you would receive £300… i.e. 500 – 200 = 300.
What this means for the insurance company is that they will end up having to pay out a pound less for each pound more you have on your excess. So from their perspective, the higher your excess, the more profit they are going to make. They in turn will charge you lower premiums the higher you set your excess level.
This can be a useful way of saving money when buying a caravan insurance policy. But it should be considered that it is pointless having cheaper caravan insurance if when you make a claim you don’t have enough money to cover the excess, and as a result end up without a usable caravan.
So next time you are getting caravan insurance quotes, experiment with different excess levels to see the effect it has on the premiums. You could save yourself a decent amount of money.
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