Cheaper holidays with value caravan insurance

AA insurance has launched a ‘value’ insurance policy aimed at caravan owners looking to cut back on expenses during the recession.

Caravan Essentials insurance provides stripped-down cover for caravans worth up to £10,000.

It provides essential cover of up to £2 million for public liability, damage, or theft.

Extras such as legal expenses or family cover can be added for an additional premium.

AA’s head of caravan insurance, Karen Jakes, said: “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.”

She added that AA’s standard Caravan policies include year-round European cover, which many owners planning to stay in the UK won’t be interested in.

Recent research by the AA found that motorists are reducing the money they spend when buying a car.

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