The Complete Guide to Caravan Insurance in Australia
Your caravan, motorhome, or camper trailer is probably the second-most valuable thing you own. Yet a surprising number of Australian RV owners are either uninsured or seriously underinsured, often without realising it until something goes wrong.
One hailstorm. One rollover. One theft from a caravan park. And suddenly a $60,000 or $100,000 asset is gone, and the policy they thought covered it doesn't.
This guide covers everything you actually need to know. What insurance covers, what it doesn't, how much it costs, and how to make sure you're not left short when you need it most. Whether you own a pop-top, a touring van, an off-road rig, a fifth wheeler, or a motorhome. This is for you.
Is caravan insurance compulsory in Australia?
No. There's no law requiring you to insure your caravan or motorhome in any Australian state or territory. But that doesn't mean going without is a sensible idea.
Australia has over 850,000 registered recreational vehicles on the road. That number is growing fast. And with premiums rising sharply due to climate events, theft, and reinsurance costs, the cost of not being insured is growing too.
Compulsory Third Party (CTP) insurance covers personal injury caused by your car. It does not cover your caravan. If your van comes unhitched and damages someone's property, or you roll it on a remote track, or a storm writes it off while it's parked. CTP won't help you at all.
What type of insurance do you need?
There are three levels of caravan insurance in Australia.
Comprehensive cover
The full package. It covers damage to your own rig and damage your rig causes to other people's property. Storms, hail, floods, fire, theft, vandalism, collision, rollover — all included. Every major insurer includes up to $20 million in legal liability cover as standard. Some go to $30 million.
Comprehensive policies also typically include towing to the nearest repairer, emergency repairs (usually $500 to $1,000), temporary accommodation if your van is unliveable, and food spoilage cover. Most offer new-for-old replacement if your caravan is written off in the first two to three years.
Third party, fire and theft
The middle ground. It covers damage your rig causes to other people's property, plus theft of your own van and fire damage. It does not cover storm damage, hail, flood, vandalism, or accidental damage to your own rig.
Third party property only
The bare minimum. It covers damage your van causes to someone else's property. Your rig itself has no protection at all. For anything worth more than a few thousand dollars, this is a significant risk to carry.
For most caravanners, comprehensive cover is the right choice. The cost difference from third party is often smaller than people expect.
What's actually covered — and what's not
Understanding the exclusions is just as important as understanding the cover.
What comprehensive insurance typically covers
- Accidental damage, collision, and rollover
- Theft and attempted theft
- Storm, hail, flood, and fire
- Vandalism
- Annexes and awnings (check below for detail)
- Contents inside the caravan (up to a limit)
- Emergency accommodation if your van is unliveable
- Towing and emergency repairs
- Legal liability up to $20 million or more
What it typically doesn't cover
Wear and tear is never covered. Rust, corrosion, mould, gradual deterioration. If it's happened over time, it's not an insured event. Mechanical and electrical breakdown is also excluded unless it was caused by an insured event like a storm or collision.
Tyre damage from punctures, cuts, or blowouts is excluded. So is damage from insects or vermin.
Overloading is a serious one. If you exceed your caravan's Aggregate Trailer Mass (ATM) or your tow vehicle's Gross Combined Mass (GCM), your insurer can refuse the entire claim, including damage to your car. This happens more than people think.
Under the influence — if the driver towing the caravan has been drinking or is on drugs at the time of an accident, the claim is denied.
Commercial use — using your caravan for hire, short-term rental, or business purposes is generally excluded unless you have a specific commercial policy.
Poor maintenance — some policies require you to keep the caravan structurally sound, watertight, and well maintained. Damage caused by seals you haven't maintained, leading to water ingress, rot, or mould, may be refused.
Off-road travel on a standard on-road caravan policy is one of the most commonly misunderstood exclusions. We cover this in its own section below.
Annexes, awnings, and contents — the tricky part
Annexes are often not automatically covered. Many insurers either exclude them entirely or cap the cover at $1,000, which is completely inadequate for a quality annexe. Always ask specifically about this before you commit to a policy.
Fixed awnings that are permanently attached to the van, the roll-out type for instance, are generally covered as part of the caravan structure. Freestanding or pop-up annexes are a different story and usually need to be added separately.
Contents limits are often too low. Most standard policies include just $1,000 to $2,000 for contents. Think about what you actually carry: a laptop, camera, fishing gear, tools, solar chargers, kitchen equipment, clothes for months of travel. A $1,000 limit doesn't go far. You can increase your contents limit with most insurers for a small additional premium. If you're a full-timer or grey nomad, you should.
Does car insurance cover your caravan?
This is one of the most common misconceptions in Australian caravanning. And getting it wrong can be very costly.
Your car insurance does not cover your caravan.
It covers your car. If you're in a collision while towing, your comprehensive car policy pays for repairs to your car. Some policies include a small amount for the trailer. Budget Direct's Gold Comprehensive, for example, pays up to $1,000 if a trailer is damaged in a towing collision. For a caravan worth $80,000, that $1,000 is almost meaningless.
Your car insurance will not cover:
- Theft of your caravan when it's unhitched and parked
- Storm, hail, or flood damage to the caravan
- A tree falling on your van in a caravan park
- Contents inside the caravan
- Damage to the caravan in a rollover
Your caravan needs its own dedicated insurance policy. Relying on your car insurance is not a plan. It's a gap.
Agreed value vs market value — why this matters more than you think
When you insure your caravan, you'll need to choose between agreed value and market value. This is one of the most important decisions in your policy, and most people don't give it enough thought.
Agreed value means you and the insurer agree on a fixed dollar amount upfront. If your caravan is written off or stolen, that's what you receive (minus your excess). That amount doesn't change during the policy term.
Market value means the insurer determines what your caravan was worth on the open market immediately before the loss. They calculate this based on age, condition, and comparable sales. You don't set the number. They do.
For caravans, agreed value is almost always the better choice.
If you've spent $5,000 on a lithium battery upgrade, $3,000 on suspension, and $2,000 on a new awning, a market valuation may ignore those entirely. Under agreed value, those upgrades are reflected in your payout. Under market value, you could receive far less than the cost of replacing what you've actually got.
Agreed value also eliminates disputes at claim time. Under market value, disagreements about the payout figure are common. You can escalate to the Australian Financial Complaints Authority (AFCA), but that takes time and stress you don't need when you're already dealing with a loss.
If you still owe money on finance, agreed value is essential. A market value payout could leave you short of what you owe the bank.
Review your agreed value at each renewal to make sure it still reflects your van's current worth, including all modifications.
How much does caravan insurance cost?
Premiums vary considerably depending on the rig, the insurer, and how you use it. As a rough guide:
- Camper trailer or pop-top (valued at $15,000–$25,000): roughly $250–$500 per year
- Mid-range touring caravan ($30,000–$60,000): roughly $500–$1,200 per year
- High-end or off-road caravan ($80,000+): roughly $1,000–$3,000+ per year
- Motorhome (average insured value around $125,000): roughly $1,000–$2,000+ per year
As a general rule, expect to pay around 1.4% to 2% of your caravan's insured value annually.
But here's the thing: for the exact same caravan, quotes from different insurers can vary by almost three times. A real-world comparison for a 21-foot touring caravan with an agreed value of $80,000 found premiums ranging from around $1,100 to over $3,000. That's a potential saving of nearly $2,000 per year. All from getting more than one quote.
What drives the premium up or down
- The value of your caravan: the single biggest factor
- Where you store it: a locked garage or secure storage costs less than an open driveway or street parking
- How you use it: weekend use costs less than full-time travel
- Where you live and travel: cyclone-prone areas and flood-prone regions attract higher premiums
- Your claims history: a clean record earns discounts
- Your excess: a higher excess means a lower premium, but more out of pocket when you claim
- Security features: wheel locks, hitch locks, GPS trackers, and coupling locks can all reduce your premium
What type of rig do you have? Insurance differs by vehicle type
Not all recreational vehicles are insured the same way, and it's worth understanding how your specific rig fits into the landscape.
Touring caravans
The most common type insured in Australia. Every major insurer covers them. They need their own policy separate from the car that tows them.
Off-road caravans
Covered by caravan policies, but with important differences. Most standard policies charge an extra off-road excess for incidents on unsealed roads, typically an additional $200. Some won't cover off-road use at all unless the caravan is purpose-built for it. If you regularly venture off the bitumen, a specialist off-road insurer is worth considering.
Motorhomes
A different category entirely. Because motorhomes have their own engine, they're classified as motor vehicles and need motor vehicle insurance, not caravan insurance. They also need their own registration and CTP insurance.
Motorhomes fall loosely into three categories: Class A (large, built on a bus or truck chassis, with the highest values and premiums), Class B (campervans like a Toyota HiAce or VW Transporter, more affordable to insure), and Class C (mid-size, built on a van chassis with an attached living section).
CIL, Let's Go, KT Insurance, and NRMA all offer dedicated motorhome policies. Allianz does not cover motorhomes under their caravan policy.
Camper trailers
Both soft-floor and hard-floor types need their own insurance. Your car policy won't cover them adequately. Club 4X4, CIL, and AAMI all cover camper trailers.
Fifth wheelers
High-value rigs that need specialist cover. CIL and Club 4X4 both specifically list fifth wheelers. Premiums are typically $1,500–$3,000+ per year.
Pop-tops, hybrids, and slide-ons
Pop-tops and hybrids are covered under standard caravan policies by most insurers. Slide-on campers need their own separate policy. CIL and NRMA both offer specific products for these.
Off-road and remote travel: read this before you go
If you ever leave the sealed road, even just to reach a campsite, you need to understand how your policy defines "off-road." The differences between insurers are significant, and getting this wrong can cost you a claim.
The key concept is gazetted roads. A gazetted road appears on government maps, is legally recognised, and is maintained at least minimally by a council or government body. Many unsealed roads, gravel roads, and outback highways are gazetted. But plenty of the best free camps, national park tracks, and station roads are not.
If your policy only covers gazetted roads and you're on an ungazetted track, you have no cover, even if that track is widely used and well-maintained.
Most standard caravan policies cover unsealed gazetted roads but charge an extra off-road excess for incidents on them, typically $200 on top of your standard excess. NRMA covers off-road use but only if the caravan is purpose-built for it.
Club 4X4 is the standout for serious off-roaders. They cover gazetted and non-gazetted roads, 4WD tracks, beaches, water crossings, and private property, as long as you're legally permitted to be there. Their standard policies include $1,500 in recovery cover, which you can upgrade to $5,000, $15,000, or $30,000. Remote recovery can cost thousands. Getting bogged in the Kimberley or Cape York is not a cheap exercise.
Living in your caravan full-time
A growing number of Australians live in their caravan or motorhome permanently. Your standard recreational caravan policy may not cover you if you're living in it full-time.
Standard caravan insurance is written for recreational use. When a caravan becomes your primary residence, the risk profile changes. The wear is greater, your personal possessions are worth more, and your need for emergency accommodation is far more urgent.
You must tell your insurer if you change from recreational use to full-time living. Failure to disclose this change can void your entire policy. Every major insurer states this clearly in their Product Disclosure Statement.
Several insurers do cater specifically to full-timers. Apia (Suncorp's over-50s brand) explicitly covers caravans used as a primary residence, with $150 per day for up to 30 days in emergency accommodation. AAMI covers caravans "whether you're travelling Australia-wide or permanently on-site." WFI can insure a caravan as your primary home under a Standard Home policy.
Full-timers should also think carefully about contents limits ($1,000 won't cover months of possessions), motor burnout cover for appliances running constantly, and having a mailing address. Some insurers need a fixed correspondence address.
Grey nomads: what to watch for
Australia's over-55s travelling by caravan are a huge part of this market, accounting for around 43% of all caravan and camping overnight stays nationally. Their insurance needs differ from weekenders in a few important ways.
Duration of travel. A six-month Big Lap is different from a two-week holiday. Make sure your policy doesn't assume you'll be home within 90 days. Some policies have continuous travel limits.
Contents limits. Grey nomads carry more. Laptops, cameras, medical equipment, fishing gear, bikes, tools. The standard $1,000 contents cover isn't enough. Some insurers allow contents cover up to $15,000. If yours can't match what you carry, consider a portable items add-on through your home contents policy.
Emergency accommodation. If you're 1,500km from home and your van is written off in a storm, $500 of accommodation cover won't get you far. Apia provides $150 per day for 30 days. For full-time travellers, the difference is real.
Insurers that cater specifically to this group include Apia, National Seniors Insurance, and COTA Insurance. CMCA (Campervan and Motorhome Club of Australia) members sometimes access group rates through affiliated insurers.
Modifications and upgrades: declare everything
Modern caravans are heavily modified. Solar panels, lithium batteries, suspension upgrades, satellite dishes, toolboxes, water filtration systems, bike racks, entertainment systems. The total investment can easily reach $10,000 to $20,000 above the base van price.
If you don't declare these modifications to your insurer, you risk having your entire claim denied. Not just the modification. The entire claim.
Everything needs to be declared. Even dealer-installed accessories. Factory-fitted options are generally covered under the base sum insured, but anything installed after purchase needs to be declared and the sum insured updated. Keep receipts, take photographs, get compliance certificates for any electrical work, and update your insurer at each renewal.
A note on the new electrical standards
New standards for caravan electrical installations (AS/NZS 3001.2:2022) took effect for new work after November 2023. Lithium batteries installed inside the habitable area must now be in a sealed enclosure with external ventilation. All lithium batteries must carry IEC 62619 certification. Solar installations need correct fusing, and inverters need a Residual Current Device.
If a post-November 2023 electrical installation doesn't meet these standards and causes a fire, your insurer may deny the claim. Use certified installers, keep all documentation, and make sure your insurer knows about any electrical upgrades.
What caravan insurance costs are doing right now
Premiums are rising, and the current market is worth understanding before you renew.
Australian home and contents premiums rose roughly 14% in the past year. Major insurers including Suncorp (which owns AAMI, GIO, CIL, and Apia) announced premium increases of up to 9% for their most recent financial year. Caravan insurance operates in the same market and is subject to the same pressures.
The primary driver is natural disasters. Insurance claims from catastrophic weather events have risen approximately 50% over five years. Hail, flood, storm, and cyclone events are all more frequent and more severe. Reinsurance costs rose by up to 30% in recent years, and those costs flow directly to consumers.
This doesn't mean good value cover is impossible to find. It does mean shopping around matters more than it did five years ago. Don't auto-renew without checking alternatives first.
How to choose the right policy
A few practical principles that will help you make a good decision.
Get at least three quotes. The premium difference for the same caravan can be nearly three times between the cheapest and most expensive insurer. That's often $1,000 to $2,000 per year. Use our matching tool to find the specialists most likely to offer competitive pricing for your specific situation.
Compare what you're actually getting, not just the premium. A $900 per year policy with a $1,250 excess may cost you more than a $1,100 policy with a $300 excess the first time you claim. Look at contents limits, annexe cover, emergency accommodation, off-road provisions, and whether it's agreed or market value.
Read the PDS. The Product Disclosure Statement is the legal document that governs what you're covered for. It overrides anything on a website or anything a sales agent tells you. The sections on exclusions and definitions are the ones that matter most.
Review it annually. If you've made modifications, update the sum insured. If you've changed how you use the van, tell your insurer. A policy that was right 12 months ago may no longer reflect your situation.
Questions worth asking before you commit:
- Is this agreed value or market value?
- What's the contents cover limit, and can I increase it?
- Are my annexe and awning covered?
- Does the policy cover unsealed roads? What about ungazetted tracks?
- Is flood damage included as standard?
- What excess applies off-road?
- Does the policy cover full-time travel?
- What happens if I need emergency accommodation more than 500km from home?
- Is there a lay-up discount for months I'm not using it?
Not sure which insurer is right for your situation?
That's exactly what we built our matching tool for.
Answer six quick questions about your rig, how you travel, and where you're based. Our tool works through which insurers actually cover your situation, not just in theory but in the detail of their policies, and shows you the ones best matched to your needs.
Motorhome owner heading off-road in Queensland? Full-timer with a heavily modified caravan? Weekender with a pop-top stored in a garage? The right match is different for each of you, and that's the point.
It takes three minutes. There's no obligation.
Frequently asked questions
Is caravan insurance compulsory in Australia?
No. There is no legal requirement to insure a caravan or motorhome in any Australian state or territory. However, going without leaves you exposed to significant financial risk if your rig is damaged, stolen, or causes damage to someone else's property. Compulsory Third Party insurance covers personal injury. It does not cover your caravan at all.
Does my car insurance cover my caravan?
Generally, no. Comprehensive car insurance covers your car while towing, and provides third-party liability cover if the combination causes damage to others. Some policies include a small amount (typically $1,000) for trailer damage in a towing collision. But your caravan needs its own dedicated policy to be properly covered against theft, storm, hail, flood, and damage when unhitched.
What's the difference between agreed value and market value?
Agreed value means you and the insurer fix the payout amount upfront when you take out the policy. Market value means the insurer calculates what your caravan was worth at the time of the loss. Agreed value is almost always the better choice for caravans, especially if you've made modifications, have a newer van, or still have finance owing. With market value, you don't know what you'll receive until after you've made a claim.
Do I need separate insurance for a motorhome?
Yes. Because motorhomes have their own engine and drive under their own power, they're classified as motor vehicles and need motor vehicle insurance, not caravan insurance. They also need their own registration and Compulsory Third Party insurance. Most major insurers offer dedicated motorhome policies.
Will my insurance cover off-road travel?
It depends on the policy. Many standard caravan policies charge an extra off-road excess for incidents on unsealed roads, and some won't cover off-road use at all unless the van is purpose-built for it. If you regularly travel off the bitumen, on ungazetted tracks, beaches, or remote 4WD terrain, look for a specialist off-road insurer rather than a standard policy.
What happens if I live in my caravan full-time?
Standard recreational caravan insurance may not cover full-time living. You must notify your insurer if your caravan becomes your primary residence. Failure to do so can void your entire policy. Several insurers offer specific full-time living cover with higher emergency accommodation limits and more appropriate contents cover. Apia, AAMI, and WFI all have options for permanent van residents.
Do I need to declare modifications to my insurer?
Yes, and this is important. If you don't declare modifications like solar panels, lithium batteries, suspension upgrades, or other aftermarket additions, your insurer may deny your entire claim if something goes wrong, not just the modified component. Declare everything, keep receipts and photos, and update your insurer at each renewal when you've made changes.
How can I reduce my caravan insurance premium?
The most effective ways are: store your van in a locked garage or secure storage facility, install security devices like wheel locks and GPS trackers, choose a higher excess if you can genuinely afford it in a claim, pay annually rather than monthly, maintain a clean claims history, and compare quotes from multiple insurers at each renewal rather than auto-renewing. Don't stay loyal to the same insurer year after year without checking. Premiums can vary a lot.
This guide is general information only and does not constitute financial advice. Please read the Product Disclosure Statement for any policy you are considering before purchasing. For advice specific to your situation, speak with a licensed insurance broker.
— The team at Compare Caravan Insurance