The AA is launching a new policy, called Caravan Essentials insurance, which it claims will provide “value” insurance for Caravans worth up to £10,000.
According to the AA, the new stripped-down cover still includes essentials such as cover for up to £2 million for public liability, damage or theft. Karen Jakes, head of AA caravan insurance said that as a result of the credit crunch, many caravan owners are looking for a cheaper insurance policy.
She explained: “With the poor exchange rate, high price of fuel and the generally higher cost of living, we believe many families are considering caravan destinations such as the Cotswolds or the Cairngorms this year, rather than say Carcassonne .”
The AA recently conducted research which found that people are also cutting costs when it comes to buying cars . The organisation’s loans department has found an increase in the number of personal loans used to buy second-hand vehicles compared to brand new ones.