Keeping Your Caravan’s Value with New for Old Cover

It’s an unsettling thought, but imagine your caravan being stolen or damaged beyond repair, then to find that your insurer can only cover its current market value—often far less than what you originally paid. That’s where new for old caravan insurance comes in. Instead of covering the depreciated value, this policy type replaces your caravan with a brand-new version of the same make and model.

It’s a popular choice for caravan owners who don’t want to risk being out of pocket. With this cover, you don’t have to settle for a second-hand replacement or dip into your own savings. It can provide peace of mind knowing that if the worst happens, you’ll be back on the road or relaxing in your caravan without the financial hit.

How does new for old caravan insurance work?

New for old caravan insurance can mean you don’t lose out financially if your caravan is stolen or written off.

If your caravan is damaged beyond repair or stolen, you won’t just get a payout for what it’s worth today. Instead, your insurer covers the cost of a brand-new version of the same make and model—or the closest available equivalent if your model is no longer made.

The level of cover is based on your caravan’s value when new. When you take out your policy, you’ll need to declare how much it would cost to replace with a new model.

This figure determines both your premium and the amount your insurer may pay out if you ever need to claim. If you don’t update your caravan’s value over time, you could end up underinsured, so it’s worth checking with your insurer regularly to make sure you’re suitably covered.

Key benefits of new for old cover for your caravan

Caravan new for old insurance can give you confidence that, if the worst happens, you could get a full replacement without the financial burden. Here’s why it’s a popular choice:

• Full value replacement: If your caravan is stolen or written off, your insurer replaces it with a brand-new equivalent model, not it's depreciation value. There’s no need to settle for a second-hand replacement.
• No depreciation worries: Caravans lose value over time, but that won’t affect your payout. Your insurer can cover the cost of a brand-new model, not the reduced market value.
• Peace of mind: Whether it’s theft, fire, storm damage, or an accident, you won’t have to worry about unexpected costs. Your cover provides you with a like-for-like replacement.
  Ideal for newer caravans: If your caravan is relatively new, this cover ensures you won’t lose out due to depreciation. It keeps your caravan’s value as good as new.

Is new for old cover right for you?

Choosing between new for old and market value cover depends on your budget, the age of your caravan, and how much protection you want.

New for old caravan insurance can mean that if your caravan is stolen or written off, your insurer replaces it with a brand-new equivalent model. Market value cover pays out based on your caravan’s current worth, factoring in depreciation.
 

New for old cover is ideal if your caravan is relatively new (usually under 10 years old, though this varies by insurer). It’s a great choice if you’d rather replace your caravan with a brand-new model than settle for a second-hand alternative.
 

However, this cover typically comes with higher premiums since you’ll need to insure your caravan for its full replacement value. If you underestimate this, you could end up underinsured.
Market value cover may be your only choice if your caravan is older and doesn’t qualify for new for old cover. While it keeps premiums lower, the payout might not be enough to buy a similar replacement. If you’re comfortable with this option and looking to save on costs, market value cover could be a suitable fit.
 

Before deciding, check your caravan’s eligibility. Consider whether you’d rather pay more for new for old cover, or opt for lower premiums with a payout based on depreciation.

Common questions about new for old caravan cover

New for old caravan insurance can be a great way to protect your investment, but it's important to understand exactly what it covers. Always check with your insurer for the specifics of your policy, as terms can vary.

Here are some common questions to help you decide if it's the right choice for you.

Is contents included in new for old cover?

Most contents insurance works on a new for old basis. This means if you claim for an item like a TV, you'll receive a brand-new replacement rather than a second-hand equivalent. However, caravan contents may not be automatically included in your new for old caravan policy.
Insurers often provide a separate level of cover for contents with a set limit. This means you’ll need to check your policy to see what’s included and whether your belongings are fully protected. 

If in doubt, speak to your insurer to make sure you have suitable cover.

What happens if my caravan model is no longer available?

If your caravan is written off or stolen and your exact model is no longer on the market, your insurer will usually offer the closest equivalent replacement. This means a model with similar features, specifications, and price.

It’s worth checking your policy details to understand how your insurer decides on a suitable replacement. If you have a rare or discontinued model, ask your provider what options would be available if you made a claim.

Protect your caravan with new for old cover from Lifesure

We’ve been helping caravan owners find insurance for over 20 years, so we know how important it is to have suitable cover in place. With new for old caravan insurance, you can relax knowing that if the worst happens, you may get a brand-new replacement.

At Lifesure, we offer dedicated caravan insurance and RAC touring caravan breakdown insurance to keep you covered wherever in the UK your adventures take you. 

Get a quote for touring caravan insurance or static caravan insurance, or call us on 01480 402 460 to speak to our friendly team. You can also manage your policy and send us secure messages through the MyLifesure customer portal.

Disclaimer: The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Lifesure accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.