Unlike car insurance, caravan insurance is something of a niche sector, which means that insurers have a greater responsibility to understand the market landscape.

This is according to Mike Powell, insight analyst for general insurance at Defaqto.

The independent financial research firm recently revealed that there are just 41 providers and 66 products available within the UK industry. This makes it substantially smaller than other personal lines insurance products and impacts how far different policies will appeal to target consumers.

For example, at the moment around 70 per cent of policies apply an administration fee if a customer makes a change to their policy and the fee ranges from £8 to £250. Furthermore, 41 per cent apply a duplicate document fee, which could be between £10 and £25.

These costs are worth being aware of, especially for those who are new to the market. It is also worth noting that there is almost universal application of excesses within caravan insurance policies, but standard access levels can be vastly different depending on the provider.

Mr Powell added that insurers who are entering the sector for the first time, bringing a new product to market or reviewing an existing product to evaluate whether it is still competitive, all need to be aware of these issues.

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