How Much Does Caravan Insurance Cost in Australia?
Caravan insurance in Australia costs around $560 to $650 per year on average for a mid-range touring caravan, but the range is wide. A small camper trailer might cost $250 to insure. A high-end off-road caravan or motorhome can run to $3,000 or more. The single biggest factor is the insured value of your rig, but how you use it, where you store it, and which insurer you choose all play a real role in what you pay.
How much does caravan insurance cost? Real-world figures
The most reliable published average for comprehensive caravan insurance in Australia is around $560 per year, based on data from GIO (a Suncorp Group brand). With annual premium increases running at 5–8% in recent years, that figure is now closer to $620–$650 for 2026.
As a general rule of thumb, expect to pay around 1.4% to 2% of your caravan's insured value each year for comprehensive cover.
Real-world examples from across the market:
- A $14,000 camper trailer: around $345 per year
- A $55,000–$65,000 mid-range touring caravan: around $750 per year
- An $80,000 21-foot touring caravan: $1,100 to $3,000+ depending on the insurer
- A $100,000 off-road caravan: around $1,500 per year
- A motorhome (average insured value around $125,000): $1,000 to $2,000+ per year
The $1,100 to $3,000 range for a single $80,000 caravan is the number that should make you pause. That's almost a three-times difference for identical cover on an identical rig. Shopping around is not optional. It's how you avoid paying twice as much as you need to.
Caravan insurance cost by rig type
Premium ranges vary considerably depending on what you own.
- Camper trailer or pop-top (valued at $15,000–$25,000): roughly $250–$500 per year
- Standard touring caravan ($30,000–$60,000): roughly $500–$1,200 per year
- High-end or off-road caravan ($80,000+): roughly $1,000–$3,000+ per year
- Fifth wheeler ($100,000+): roughly $1,300–$3,000+ per year
- Motorhome (all classes, average insured value around $125,000): roughly $1,000–$2,000+ per year
Motorhomes need a separate mention. Because they drive under their own power, they're classified as motor vehicles, not trailers. They need motor vehicle insurance, their own registration, and Compulsory Third Party (CTP) insurance. You can't insure a motorhome under a standard caravan policy.
What drives your caravan insurance premium up or down
Your insured value is the biggest lever. But these factors all affect what you pay.
The insured value of your caravan
The single largest factor. The higher the agreed value, the higher the premium. If you've added $15,000 in modifications above the base van price, that needs to be reflected in your agreed value, which in turn increases your premium. It's the right trade-off. An underdeclared sum insured means a shortfall at claim time.
Where you store your caravan
Insurers ask this for a reason. A locked garage or secure storage facility carries a lower theft risk than an open driveway or street parking. The difference in premium is real. If you can store your van undercover or behind a gate, tell your insurer.
How you use it
Weekend and occasional use costs less than full-time travel. If you live in your caravan permanently, you must tell your insurer. Standard recreational policies may not cover full-time living, and failing to disclose this can void the policy entirely.
Where you live and travel
Cyclone-prone areas in northern Queensland and the Northern Territory attract higher premiums. Flood-prone regions of NSW and Victoria do too. Geographic risk pricing is real and varies by postcode. Northern Australia can see premiums two to two-and-a-half times higher than the rest of the country for home and contents insurance. Caravan insurance follows the same pattern.
Your claims history
A clean record earns a No Claim Bonus that grows at renewal. Frequent claims result in higher premiums. Before lodging a small claim, consider whether it's worth more than your potential NCB discount over the next few years.
Your chosen excess
A higher excess reduces your premium. But think carefully about affordability. A $900 annual premium with a $1,250 excess can end up costing more than a $1,100 policy with a $300 excess the first time you make a claim. Run the numbers for your situation.
Most policies have more than one type of excess. There's usually a basic excess you can adjust, plus additional excesses that apply in certain situations: an off-road excess (typically $200 extra for incidents on unsealed roads), an age excess for drivers under 25, and an inexperienced driver excess for those who've held their licence for fewer than two years.
Security devices
Wheel locks, hitch locks, coupling locks, and GPS trackers all reduce your theft risk and can lower your premium. Some insurers require minimum security devices as a policy condition. If you've installed them, make sure your insurer knows.
Modifications
All modifications must be declared. Undeclared modifications can void your entire claim. Declaring them increases your agreed value, which increases your premium, but this is the correct approach. An undeclared $10,000 lithium battery system that causes a fire may result in a denied claim and no payout.
Agreed value vs market value
Agreed value policies carry slightly higher premiums because the insurer is fixing a guaranteed payout. Market value policies are slightly cheaper upfront but give you no certainty about what you'll receive if you claim. For most caravan owners, agreed value is the better choice, especially if you've made modifications or have finance owing.
Paying annually vs monthly
Monthly payments typically cost 6–8% more than paying annually. On a $1,000 premium, that's an extra $60–$80 per year. One notable exception: NRMA charges no extra for monthly or quarterly payments, which is unusual in the market.
Why caravan insurance costs are rising
Australian insurance premiums have risen fast in recent years and caravan insurance is no exception.
Motor vehicle insurance premiums rose 12% in a single year (2023 to 2024) according to KPMG data. Comprehensive motor premiums hit an average of $1,052 per year in 2024, up 42% since 2019. The Insurance Council of Australia reports that average claims costs rose 42% between 2019 and 2024, and repair costs climbed 26% since 2022.
For caravan insurance, the core drivers are the same. Natural disaster insured losses now average around $4.5 billion per year in Australia, compared to roughly $1.5 billion in the 1990s. Reinsurance costs (the insurance that insurers buy to cover their own exposure) rose sharply in recent years, and those costs are passed on. Parts and labour costs have risen as well.
Northern Australia has been hardest hit. Cyclone exposure and flooding make insurance in Queensland's north and the Northern Territory expensive, and premiums there are rising faster than the national average. A government Cyclone Reinsurance Pool was established in 2022 to address this, though the ACCC reported in 2024 that widespread price relief has not yet materialised for consumers.
The practical upshot: auto-renewing your policy without checking alternatives is increasingly costly. Loyalty rarely pays in the current insurance market.
How much can you save by shopping around?
A lot. For the same $80,000 touring caravan, quotes ranged from around $1,100 to over $3,000 across Australian insurers. That's a potential saving of nearly $2,000 per year, for identical agreed value on an identical rig.
Only five of Australia's 33 or so caravan insurance companies provide online quotes. The rest require phone calls. That makes comparison time-consuming if you do it yourself, and it's one of the main reasons many owners just renew with the same insurer year after year without checking whether they're getting a fair price.
Getting at least three quotes at renewal is the single most effective thing you can do to manage your premium.
Ways to reduce your caravan insurance premium
Use lay-up cover
If your caravan sits unused for part of the year, lay-up cover cuts your premium during that period. You still have cover for theft, fire, storm, and accidental damage while the van is in storage: you just lose the touring benefits.
Some insurers offer a 4% discount per lay-up month, capped at eight months. That's a saving of up to 32% on your annual premium for owners who aren't using their van all year. Given that research from Youi suggests 37% of caravan owners use their van fewer than 30 days per year, this benefit is widely underused.
You cannot access lay-up cover if the caravan is your primary residence. And if you decide to use the van during a lay-up period, you need to call your insurer first.
Bundle with other policies
Several major insurers offer multi-policy discounts when you hold three or more eligible products with them. Discounts of 10–15% are available from some insurers when you combine home, contents, car, and caravan insurance.
A word of caution here: bundled deals from generalist insurers may provide less specific caravan cover than a dedicated specialist policy. Compare what you're actually getting, not just the discount percentage.
Install security devices
Wheel locks, coupling locks, hitch locks, and GPS trackers all reduce your risk profile and can lower your premium. Keep receipts and notify your insurer of any devices installed.
Choose a higher excess
Increasing your basic excess reduces your premium. Be realistic about what you could afford to pay out of pocket. There's no point choosing a $2,000 excess to save $80 per year if you can't comfortably absorb a $2,000 cost when something goes wrong.
Pay annually
If you can manage it, paying your full annual premium upfront saves 6–8% compared to monthly payments. Over a $1,000 annual premium, that's $60–$80 back in your pocket each year.
Review your agreed value
Make sure your agreed value reflects your van's actual current worth, not more, not less. Over-insuring means you're paying a premium on money you'd never receive. Under-insuring means a shortfall at claim time. Review it at every renewal, especially after adding modifications.
Ready to find out what your caravan insurance should actually cost?
The best way to know what you should be paying is to compare specialist options for your specific rig and travel style. Our matching tool works through six questions: vehicle type, how you travel, value, usage, modifications, and state. It then shows you the insurers most likely to offer competitive, appropriate cover for your situation.
It takes three minutes. There's no obligation. And for most people, it uncovers a real gap between what they're paying and what they should be.
Compare caravan insurance now →
Frequently asked questions about caravan insurance costs
What is the average cost of caravan insurance in Australia?
The widely cited average is around $560 per year, based on data from major insurers. With annual increases running at 5–8% in recent years, the 2026 average is estimated at $620–$650. But averages don't mean much on their own. A small camper trailer might cost $250 to insure, while a high-end off-road caravan or motorhome can exceed $3,000. Your own quote depends on your rig's value, how you use it, where you store it, and which insurer you choose.
How much does it cost to insure a $100,000 caravan?
Using the rule of thumb of 1.4%–2% of insured value annually, a $100,000 caravan would attract premiums in the range of $1,400–$2,000 per year for comprehensive cover. Real-world quotes for $100,000 rigs sit around $1,500 per year as a midpoint, though off-road capability, storage location, and which insurer you choose can push this figure higher or lower. Always get at least three quotes before committing.
Why is my caravan insurance going up every year?
Australian insurance premiums have risen sharply in recent years. Motor insurance costs rose 12% in a single year (2023–2024). The main drivers are natural disaster claims (now averaging $4.5 billion per year in insured losses, compared to $1.5 billion in the 1990s), rising repair and parts costs (up 26% since 2022), and higher reinsurance costs. These pressures affect caravan insurance the same way they affect home, car, and contents insurance. Shopping around at each renewal is the most effective response.
How can I reduce my caravan insurance premium?
The most effective actions are: get multiple quotes rather than auto-renewing, use lay-up cover if your van sits unused for part of the year (potential savings up to 32%), pay annually rather than monthly (typically saves 6–8%), install security devices and tell your insurer, choose a higher excess if you can afford it, and consider multi-policy discounts if bundling with other covers. Review your agreed value each year to ensure you're not over-insuring.
What is lay-up cover and how much does it save?
Lay-up cover is an optional benefit that reduces your premium during periods when your caravan is stored and not in use. You keep cover for theft, fire, storm, and accidental damage at the storage address, but lose the touring cover. Some insurers offer a 4% discount per lay-up month, with a cap of eight months, saving up to 32% annually. It's not available if the caravan is your permanent home. If you're using your van for only part of the year, lay-up cover is one of the most underused savings available.
Is motorhome insurance more expensive than caravan insurance?
Generally yes, for two reasons. First, motorhomes typically have much higher insured values: the average insured motorhome is around $125,000, compared to $55,000–$65,000 for a mid-range touring caravan. Second, motorhomes are classified as motor vehicles, not trailers, so they need motor vehicle insurance (not caravan insurance), their own registration, and Compulsory Third Party cover. The combined cost of all three is typically higher than caravan insurance alone. Dedicated motorhome policies are available from a smaller pool of specialist insurers.
This article is general information only and does not constitute financial advice. Premium ranges are indicative and based on publicly available data. Your actual premium will depend on your specific circumstances. Please read the Product Disclosure Statement for any policy you are considering before purchasing. For advice specific to your situation, speak with a licensed insurance broker.
— The team at Compare Caravan Insurance