Does car insurance cover a caravan while towing?

One of the easiest caravan insurance mistakes to make is assuming that if your car is insured, the caravan behind it must be insured too.

That's not necessarily the case.

Your car insurance may provide some cover while you're towing, particularly if the caravan causes damage to somebody else's property.

But that doesn't automatically mean damage to your own caravan is covered.

What can car insurance cover while you're towing?

It depends on your car insurance policy.

Some Australian car policies can cover your legal liability if the caravan or trailer you're towing causes damage to someone else's vehicle or property.

For example, this could become relevant if your caravan:

• hits another vehicle
• damages someone else's property
• separates from the towing vehicle and causes damage

The exact cover and limits depend on the car policy.

Does that cover damage to my caravan?

Not necessarily.

This is the important distinction.

A car insurance policy can cover liability arising while you tow a caravan without covering damage to the caravan itself.

If the caravan is damaged in a crash, stolen or damaged by severe weather, you may need separate caravan insurance for it to be covered.

Check both policies rather than assuming one replaces the other.

What if the caravan is unhitched?

Once your caravan is parked or unhitched, your car insurance is even less likely to be the policy dealing with damage to the caravan itself.

Caravan insurance can provide cover while the caravan is being used or stored, depending on the policy.

This can include things like:

• accidental damage
• theft
• fire
• storm
• flood
• vandalism

Cover varies, so check the individual policy.

What about damage while you're actually towing?

A caravan policy can cover damage to the caravan following a covered accident while it is being towed.

Your insurer may have rules around the towing vehicle and driver.

For example, policies can include conditions relating to:

• whether the driver is licensed
• whether the caravan is roadworthy
• whether the tow vehicle is suitable
• legal towing limits
• loading
• who is driving

Make sure your towing setup meets the law and the conditions of your insurance.

What if my car breaks down?

A breakdown and an insurance claim aren't the same thing.

If the tow vehicle breaks down without an insured accident, normal caravan insurance may not automatically pay to recover both the car and caravan.

Roadside assistance or specialist caravan recovery cover can be relevant here.

Check what happens if:

• the car breaks down
• the caravan breaks down
• the caravan becomes stranded
• you're a long way from the nearest town

This matters even more if you travel remotely.

Do you need separate caravan insurance?

Caravan insurance isn't just an extension of ordinary car insurance.

If you want protection for the value of the caravan itself, check what separate caravan cover is available.

Think about what would happen if your caravan was:

• written off in an accident
• stolen
• damaged by hail
• damaged by a storm
• damaged while parked
• vandalised

Then check whether the policy you're considering actually covers those situations.

Check both policies before your next trip

Before travelling, look at both your car insurance and caravan insurance.

Check:

• what the car policy covers while towing
• whether liability from the caravan is covered
• what covers damage to the caravan
• who is allowed to tow it
• towing and loading conditions
• roadside assistance
• caravan recovery
• any relevant exclusions

A few minutes checking this before a trip is better than trying to work out which policy applies after an accident.