What is Caravan Cover?
The Caravan and Motorhome Club is a mutual organisation - which means it is effectively owned by its members. As such, we can offer a discretionary mutual caravan cover to anyone that’s a Club member.
Discretionary mutual caravan cover is not insurance but provides similar cover to caravan insurance offered by other providers; in that, those who take out our Caravan Cover have their contributions pooled together into a fund. And those pooled funds are then used to pay for any claims made by the members.
What is Caravan Insurance?
Caravan insurance is a type of optional insurance policy that will usually pay out or offer a replacement if your caravan is damaged in an accident or stolen. It should also cover you if your caravan causes any property damage or injury to third parties. Caravan Cover is an alternative to caravan insurance that can protect you and your caravan.
What's the difference between the Club’s Caravan Cover and Caravan Insurance?
Where Caravan Cover differs from insurance, unlike insurance whereby the provider ‘promises’ to pay a specified amount of money in the event of a loss or damage, there is no obligation on us to pay claims. This is why it is called a ‘discretionary’ mutual. The good news though is that it also allows us the discretion to pay more and be more flexible in reviewing a claim than an insurance provider.
We know how much our members trust us, but hearing that there is ‘no obligation to pay’ may be a little worrying! So, to reassure you, the Club has taken out an insurance policy in the Club’s name and the terms of that policy matches our Caravan Cover wording. This effectively means that if you disagree with the decision, you have the protection of that insurance policy to claim under.
We think that’s a big plus for our members. As the Club has the discretion to pay more, be more flexible than an insurer might be, and if we don’t or cannot pay for any reason, you have the protection of an insurance policy to claim under too. Without shareholders to appease, we’re able to put all profits directly back into the Club, which are used to help improve facilities, deliver new sites and more for members!
So, for all your caravan and towing accessories look no further than the team at Bowers Automotive. Call us today on 01782 590 700 or email enquiries@bowersautoparts.net.