12 Ways to Reduce Your Caravan Insurance Premium
- Most Australian caravans, motorhomes, and camper trailers are now insured for $600–$700 per year — and premiums are still rising.
- Increasing your excess, activating lay-up cover, and installing security devices are the fastest ways to cut costs.
- Paying annually instead of monthly saves money with almost every insurer.
- CMCA members can access a 5% discount with KT Insurance; RACV offers up to 10% off for bundling multiple policies.
- A clean claims history (no-claim discount) is one of the biggest long-term premium reducers — guard it carefully.
- Over 55% of caravan theft happens at home, so where you store your van directly affects your risk rating and your premium.
With average caravan premiums sitting around $620–$650 in 2026 — up from roughly $560 in 2024 — knowing how to reduce caravan insurance costs has never mattered more. The good news: most Australians are paying more than they need to. These 12 strategies work for caravans, motorhomes, camper trailers, fifth wheelers, and pop-tops alike.
1. Compare quotes every single year
Loyalty doesn't pay in Australian insurance. Insurers frequently offer their best rates to new customers while quietly letting existing premiums creep up at renewal. Spending 15 minutes comparing quotes on a site like this one before each renewal is the single most effective thing you can do. Premiums for the same caravan can vary by $200–$400 between providers for identical cover.
2. Increase your excess
Your excess is the amount you pay out of pocket when you make a claim. Choosing a higher excess reduces the insurer's financial exposure, and they pass some of that saving back to you. Some insurers unlock lower premium tiers once your excess exceeds $999. The trade-off: make sure you can actually afford to pay that excess if something goes wrong. A $1,500 excess you can't cover defeats the purpose.
3. Use lay-up cover during the off-season
If your caravan, motorhome, or pop-top sits in storage for three to six months each year, you're paying for cover you're not using. Lay-up cover reduces your premium for the agreed storage period by removing on-road cover while keeping basic protections like fire, theft, and storm damage in place. NRMA, Let's Go, and several specialist insurers offer this. You can't use the caravan for touring during a lay-up period, but the savings can add up to $100–$200 a year.
4. Pay annually, not monthly
Monthly payment plans are convenient, but they cost you. Insurers typically charge an administration fee or built-in interest when you spread premiums across 12 payments. Paying the full annual premium upfront is almost always cheaper. If cash flow is tight, set aside the monthly equivalent in a savings account and pay in full at renewal.
5. Install a wheel clamp and hitch lock
Caravan theft is rising fast in Australia. Victoria alone recorded 174 stolen caravans in the 12 months to June 2024, up 67% since 2022. Across the country, an estimated 400–600 caravans and camper trailers are stolen every year.
Wheel clamps immobilise the van so it can't roll. Hitch locks prevent another vehicle from coupling to yours. Both are recognised by Australian insurers as genuine theft deterrents, and declaring them on your policy reduces your risk profile. Check your insurer's PDS for approved device brands — some are specific about which products qualify.
6. Add a GPS tracker
A GPS tracker won't stop a theft, but it dramatically increases the chance of recovery. Insurers know this, and some offer a direct premium reduction for approved tracking devices. Even where a formal discount isn't listed, declaring a tracker can still work in your favour at quote time. Units from brands like CarLock and Optimus GPS can be fitted for a few hundred dollars and are transferable if you upgrade your van.
7. Store your caravan securely
More than 55% of caravan and camper trailer thefts happen at the owner's home. Where you store your van is a direct input into how much risk an insurer assigns to your policy. A locked garage scores better than an open driveway. A dedicated storage facility with CCTV and perimeter fencing scores better still. Be honest about storage when you get a quote — inaccurate information can void a claim later — but if you have a secure option, use it and declare it.
8. Bundle your policies with the same insurer
Most major insurers offer a multi-policy discount when you hold two or more products with them. RACV offers up to 10% off each policy when you bundle home, motor, and caravan cover. NRMA, Allianz, and others have similar structures. Run the numbers: even a 5–8% discount on a $650 caravan premium adds up, and the saving often grows when applied across your home and car insurance at the same time.
9. Join a caravan or RV club
Club membership has a direct financial payoff with some insurers. CMCA (Campervan and Motorhome Club of Australia) members receive a 5% discount on eligible policies through KT Insurance, which covers motorhomes, fifth wheelers, campervans, and touring caravans. The Australian Caravan Club has similar arrangements with selected providers. Check what your existing club membership already entitles you to before you renew.
10. Protect your no-claim discount
Insurers reward a clean claims history with a no-claim discount (NCD), which typically builds year on year. One small claim can wipe out several years of accumulated discount. Before lodging a claim for minor damage, work out whether the repair cost actually exceeds your excess plus the NCD you'd lose. For scratches, dents, or small awning tears, paying out of pocket and protecting your discount often comes out ahead over a three-to-five year window.
11. Declare every security feature you have
Insurers can only price in the features they know about. If your caravan already has an alarm, a coupling lock, a GPS tracker, or a hitch lock and you haven't declared them, you may be overpaying right now. Review your current policy, check what security features are recognised by your insurer, and call or update your details online. It takes ten minutes and can move your premium without changing anything about the actual cover.
12. Match your cover level to how you actually use the caravan
Full-time grey nomads spending nine months a year on the road need different cover to weekend tourers who park up for most of the year. If you only take your camper trailer out four or five times a year, a comprehensive policy with every optional extra may be more cover than you need. Some insurers offer tiered structures or occasional-use products. Review your usage honestly each year and check whether your policy still fits.
How to reduce caravan insurance: what the research says works best
Of the 12 strategies above, three have the biggest individual impact for most owners:
- Comparing providers at renewal consistently delivers the largest single saving, often $150–$300 or more.
- Increasing your excess from $500 to $1,000 or above is one of the most direct levers you can pull — and many owners never think to use it.
- Protecting your no-claim discount compounds over time. A 20–30% NCD after five clean years is significant on a $650 premium.
The strategies around security devices, storage, and club membership tend to add 5–10% reductions individually, but stack well together. A caravan parked in a locked facility, fitted with a wheel clamp, hitch lock, and GPS tracker, owned by a CMCA member who has never claimed — that owner is paying materially less than someone in the same suburb with the same van and none of those factors in play.
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Compare quotes now →Frequently asked questions
Does choosing a higher excess lower my caravan insurance premium?+
Yes, in most cases. Agreeing to a higher excess reduces the insurer's financial risk on your policy, and they typically pass part of that saving back as a lower premium. Some insurers have specific premium tiers that unlock at excess levels above $999. The key risk: make sure you can comfortably cover the excess amount from savings if you need to claim. A high excess you can't afford makes the cover effectively useless when you need it most.
What is lay-up cover and how much can it save me?+
Lay-up cover reduces your premium for an agreed period when your caravan, motorhome, or pop-top is in storage and not being used for touring. During that time, you typically keep cover for fire, theft, storm, and flood, but lose on-road and transit cover. Savings vary by insurer and policy, but $100–$200 off an annual premium is realistic if you're storing your van for three to six months. NRMA, Let's Go, and several specialist insurers offer lay-up options — check your PDS or ask at renewal.
Do security devices like wheel clamps and GPS trackers reduce caravan insurance premiums?+
They can. Australian insurers treat recognised security devices as a genuine risk reduction. Wheel clamps, hitch locks, coupling locks, and GPS trackers are all factors insurers consider when pricing a policy. Some providers offer explicit discounts for approved devices; others factor them into their risk assessment without a named discount. Either way, declaring every security feature you have is essential — insurers can only price in what they know about. If you already have devices fitted and haven't told your insurer, it's worth calling to update your policy details.
Can I bundle caravan insurance with my home or car insurance to save money?+
Yes — most major Australian insurers offer a multi-policy discount when you hold two or more policies with them. RACV advertises up to 10% off each eligible policy when you bundle home, motor, and caravan cover. NRMA, Allianz, and others have comparable structures. Run the numbers carefully: the bundled discount needs to outweigh any saving you'd get by going to a specialist caravan insurer like CIL or KT Insurance. For some owners, specialist cover beats the bundle deal; for others, bundling with their existing home insurer wins.
Does caravan club membership reduce my insurance costs?+
It can. CMCA (Campervan and Motorhome Club of Australia) members receive a 5% discount on eligible insurance policies with KT Insurance. Eligible vehicles include motorhomes, campervans, fifth wheelers, touring caravans, and slide-on campers. The Australian Caravan Club has arrangements with selected providers too. If you're already a club member and haven't checked whether your membership unlocks a discount with your current insurer, it's worth a five-minute phone call.
Is it worth claiming small amounts on caravan insurance?+
Often not. Making a small claim can reduce or eliminate your no-claim discount, which can cost you more in higher premiums over the following years than the claim was worth. For example, claiming $400 for minor awning damage when your NCD is saving you $150–$200 per year rarely stacks up. A good rule of thumb: if the repair cost is less than your excess plus two years of lost NCD, pay for it yourself. Keep invoices for any repairs you fund privately too — they can help demonstrate maintenance if a future claim is ever queried.
This article is general advice only and does not account for your personal circumstances. Always read the Product Disclosure Statement before purchasing any insurance product.
— The team at Compare Caravan Insurance