Club Caravan Insurance

Brue I’ve just reported your post in the hope of further clarification

Devious and misleading, if you ask me.

I had my fill of Devitts a couple of years back and wouldn't insure a matchstick with them. 

I'm glad I use an actual insurance company and not caravan cover as something which operates in a similar way to caravan insurance doesn't cut it with me. My policy is also half the price quoted by Caravan Club Ltd, with exactly the same cover.

The club have explained on another thread. They now cover the risk themselves and pay out claims for damage to your caravan from the premiums received rather than put the business through a commercial insurer. They then reinsure the risk of claims exceeding what they can afford to give security. They are not a commercial insurer but have set up a legal alternative way of dealing with this which is far cheaper to operate but should still give you the security.

Hopefully with no commission to brokers or investors to pay dividends to it should mean a higher proportion of premiums goes to the claims and there is no commercial pressure to make as much money as possible which is there in the commercial sector.

"Should" and "Hopefully" are not words I associate with guaranteed insurance. Furthermore, I think it has been done in an underhand manner, similar to what happened at Red Pennant last year and the reduction in cover.

Wildwood - you with your experience will know better than most how important transparency is in business and how the regulators demand that customers are treated fairly? Is this the case in this scenario?

How  very  strange  !!  Does this  only  apply  to  CARAVAN  INSURANCE  / COVER  ??

Certainly  my  Ducato  has  been  insured  via  the  Club  through  Devitts  as  agents  for  the  Insurance  Company  this  very  weekend .

The club couldn't afford to self insure motor insurance Brian. The Public Liability exposure alone would be too great.

At least with Caravan cover they should have limited exposure as they will know how much each claim should maximise out at and be able to adjust premiums accordingly. They may well make a profit which will be good for the club but I personally like guarantees behind my investments and insurance and I don't like the way they appear to be going about it.

Caravan insurance also includes third party liability, as it always has.

Yes, TW, I'm sorry I didn't explain myself very well and thanks for your post.

The Third Party Liability cover under motor insurance carries way more exposure than that under a caravan policy. In all my years in insurance I never dealt or handled a Public Liability claim under a caravan policy. The CMC probably feel their exposure is minimal. 

No worries.

Agreed, other than a caravan running away on site when not attached to the towing vehicle, I’m hard pushed to think of an incident which could give rise to a third party claim.

As someone who dealt with the claims the claims usually came from people falling off the steps and injuring them selves.

You also have to look at the caravan catching fire and that spreading to other units which could be very expensive.

Apart from those the risk is very low.

With motor insurance you do get the odd catastrophe claim that can run into millions. Possibly the biggest one I dealt with, was many years ago when a car pulled out to turn right and a coach was overtaking him. The bus ran off the road and down an embankment with multiple injuries, although thankfully no fatalities.