All vehicles require insurance and motorhomes are no different. Motorhome insurance is necessary for all motorhome owners and hirers. Driving without insurance is illegal in the UK and other countries. Insurance cover protects not only the vehicle itself but also third party claims. Cover is usually available in three categories: third party, third party fire and theft, and comprehensive. Third party is the minimum level of cover required by law in the UK and protects other drivers and road users. For example, if a driver with third party cover damages another vehicle, property or person, the cover will pay for the cost of repairs and claims from the third parties, but the driver will be responsible for the cost of repairing their own vehicle. Third party fire and theft cover also will pay out for damage to the insurer's vehicle caused by fire or theft. Comprehensive cover is usually more expensive because it allows the vehicle owner to make a claim for the cost of repair to the owned vehicle itself. There are, of course, still exclusions for every insurance policy, even comprehensive ones. Some motorhome insurance excludes windscreen cover and tyre damage. Always check the policy wording thoroughly before purchasing any type of insurance. Motorhome hirers will not have a choice of policy when making a booking, so their best bet is to check the wording of the terms and conditions very carefully. If there is any doubt or confusion, contact the hire company for clarification before making a booking. Once a booking is made, acceptance of the terms and conditions is already agreed by the hirer.
Insurance has an excess, which is the amount the insurance policy holder will pay towards a claim before the company contributes. Excesses are put in place to avoid minor insurance claims and to increase care from the owners of the insured item. If there was no insurance excess, people may be less careful and, as a result, the insurer would be out of pocket and subsequently go out of business pretty quickly. Motorhomes are very expensive vehicles. Many cost over £50,000 brand new. Cars cost a mere fraction of this amount, so it is understandable that motorhome insurance (and the insurance excess) is higher than that accepted for a car. An excess is not payable upfront when hiring a motorhome, but it must be pre-authorised on a credit or debit card before the hirer can travel. A pre-authorisation is not a payment, but a way of the bank authorising a potential future payment. The pre-authorisation can only be used to pay the insurance excess or cost of repair, whichever is less. It is always advisable to protect your personal belongings and other aspects of your motorhome hire trip by taking out travel insurance after booking a motorhome.