Caravan Insurance

The increase in the number of caravan insurance customers opting to buy second-hand models has taken its toll on one caravan production company in Hull.

Nearly 290 workers are expected to lose their jobs after Cosalt Holiday Homes announced its decision to end the manufacture of caravans following a recent slump in orders.

Leeds-based firm Endless stepped in to buy the ailing company, but announced that it still intends to cut the caravan-making arm of the factory after it recorded losses of £750,000 per month.

Despite the recent boom in UK breaks as consumers look to enjoy family holidays on a budget amidst increasing economic gloom, the downturn has also adversely affected the number of holidaymakers looking to buy brand new caravans.

Instead, caravan insurance customers have been turning to cheaper second-hand models, with the Northants Evening News reporting last week that annual sales of used mobile homes had almost doubled at one Northamptonshire firm.

The disappointing news for Cosalt Holiday Homes follows after another Hull firm, Willerby Holiday Homes, was named as the UK's best caravan manufacturer at a ceremony in London last week, the Hull Daily Mail reports.

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