Why is touring caravan insurance more expensive than static caravan insurance?
Insurance companies base their premiums on historical experience and/or anticipated claims. In other words they know from experience how much they will probably have to pay out in claims and charge a premium which they expect will cover these losses and leave them a reasonable profit. Some years they get it wrong and pay out far more than they take in and in other years it balances out. Because the main risk to static caravans is storm and flood damage the insurance underwriter would expect that for most years their claims would amount to less than the premiums, they need to have these good years to make up for major events like the floods of 2007. Touring caravans have a more regular annual claims pattern. Theft of caravans is a major problem, they are difficult to trace and even with security devices are relatively easy to steal. There are very few recoveries and the thieves are seldom caught. A large chunk of your annual premium goes to pay claims for this. Accidental damage is also
