Do I choose Market Value or New for Old Cover?
If you are new to buying a touring caravan or static caravan you may not know the difference between choosing a ‘new for old’ policy or ‘market value’ caravan insurance. You need to consider the age of your purchase, plus the value.
What is new for old cover?
If your touring caravan or static caravan is insured on a ‘new for old basis’ and is damaged beyond repair or stolen, you will receive a like-for-like new replacement. What this means is that rather than getting a payment for the value of your caravan at the time of the loss you will have your touring caravan or static caravan replaced with either the latest version or a brand-new equivalent.
New for old cover pays out for a new, equivalent model in a total loss claim
To be covered on a new for old basis, you must ensure your touring caravan or static caravan is insured for the value it would cost to replace with a new equivalent model, not its current market value. This is important to check as you do not want to be under insured.
What is market value cover?
You are only covered for the amount it’s worth at the time of the loss. What this means is that if your caravan it’s ever stolen or damaged beyond repair or declared a total loss, you will be given the market value at the time of the loss. This amount is often taken from the Glass’s Guide.
What are the main differences between the two?
The main difference is the cost of the policy. A “New for Old” policy will cost more than a “Market Value” policy. However, the benefits are more with a “New for Old” policy. Most insurers do have an age limit on the caravan for “New for Old” cover.