Is this justifiable?
All across the Public section there are calls for increases in dare I say many rather derisory pay offers. Some support those on strike others don’t.
Inflation is around 10.5% with some items of food far above this figure.
Some wonder why this unrest.
Perhaps the following is a prime example of ‘why’., and yet another example of apparently how the Caravan Club is hell bent on attempting to fleece members.
The figures quoted on my recent Caravan Cover renewal of £658.06 represent a whopping increase of 23.23% over the previous year’s figure of £533.82.
Text of CAMC letter recently received:-
“It’s renewal time! Here’s what you need to know.
We’re delighted you chose to cover your caravan with us last year.
Your cover wwwwwww is due to end on 30th May 2023. We would like to invite you to renew your cover for £658.06. Just to remind you, your contribution last year was £ 533.82. This includes Legal Protection cover, the cost of which is £11.50, the same as last year.”
The CAMC response when raised justified it as follows:-
“Thank you for your call earlier.
I was sorry to hear your displeasure with the price for 2023. As mentioned there has been a big increase in van values for 2023 and we had a rate increase in September 2022. the main reasons for this are
· The Club is responsible for claims costs and any profit from the caravan covers goes directly back into funding the running of the Club and contributing to the maintenance of sites and other benefits for members. We want to make sure we are operating in a sustainable way for all our members and coverholders.
· Contributions taken pay for the claims ahead rather than in the past so we need to ensure our contributions cover the claims we expect to see.
· One of the main reasons for the increase is the inflation we are seeing on theft claims - the average value of a theft claim has risen significantly since 2018 and there is no evidence to suggest this will stop.
Thank you for your time today and if you need anything else please do give us a call on 01342488338”
Comments
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I’m struggling to see why you’ve linked public sector workers’ pay rates with CAMC insurance/cover, tbh.
Look elsewhere and vote with your wallet is my suggestion.
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I would just shop around to be honest, rather than cling to the Club. Insurance for lots of things has gone up this year, but if you can be bothered to shop around you will find better value.
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Or just moan.
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You are, of course, free to use other insurers if they represent better value. I suspect one of the issues with the cover the Club provides is that they only provide it for caravans (not even motorhomes which is a separate insurance) So rather than being able to spread the cost load over a range of insurance products its all dependent on losses, either by theft or repair, for caravans only. So it's likely that any claims have a greater impact on renewal premiums.
David
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Who knows if it is justified or not, the club has given their reasons and you either accept them or not, as said above shop around and get a better price.
However I can't find any link however tenuous between CAMC cover/insurance price rises and their 'attempt' to fleece people with current 'unrest' in various pay disrupts even if all these people are taking out club cover. Having insurance on a caravan is not in the same category as food items which people have to have.
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+1👍🏻. I agree wholeheartedly, I buy insurance to ensure I’m covered for all eventualities. I don’t like the ‘3rd party F&T’ either. Full insurance or why bother.
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It is not until you have a claim you realise the value of insurance,with the Caravan Club insurance my claim was met promptly and efficiently,with none of the "catch me out" questions,but when I had to deal with Santander which is underwritten by Aviva,what a pain,every time I rang you have the long wait,explain everything again to the telephone staff,constant dragging of feet,ect ect,if this is "proper" insurance, I know who I would rather deal with
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· One of the main reasons for the increase is the inflation we are seeing on theft claims - the average value of a theft claim has risen significantly since 2018 and there is no evidence to suggest this will stop.
I have copied this paragraph from the Club's letter,from the OP reply,are we now saying that we have to live with caravan theft,and normal off the shelf caravan security is no deterrent,and insurances with continue to increase.
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It could be that many of the security devices sold, even if Gold Standard are not up to the job. I watched a recent video on YouTube where they tested about half a dozen security devices for cars (many looked similar to what was available for caravans and motorhomes) and most took less than 2 minutes to remove, some of them without much effort.
It would be interesting to have some facts and figures on both caravan and motorhome theft. Not sure that is sensitive commercial information?
David
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Having just received the documentation for my Caravan Cover policy, it clearly states that I could refer to either the Financial Ombudsman Service or the Arbiter for Financial services if dissatisfied with the Club's response to a claim.
As Mikey A is not a member he would not be aware of this as he would not be able to take out cover with the Club.
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I renewed our caravan insurance yesterday, the 'contribution' wanted by the club to renew was £20 more than last year, however I have not adjusted the values for insurance for a few years.
It says to call to amend any details or values. So after 2 calls being on hold for around 10mins each being told 'we are busy ignoring other customers' I gave up and sourced other qoutes.
I called Saga who came out £25 cheaper whilst also increasing the value insured to cover todays over-inflated costs.
Is this 'caravan cover' municiple policy plus a 3rd party 'gap' insurance a new thing as i dont recall this senario before..
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