Caravan Insurance

Caravan sales are unlikely to be affected by the announcement in this year's Budget of a scrappage scheme, it has been suggested.

According to the National Caravan Council (NCC), because mobile homes hold their value so well, consumers are unlikely to find the £2,000 grant for scrapping their vehicle attractive.

Under the scheme, Britons whose vehicles are over ten years old will qualify for help towards purchasing a new, greener model.

John Lally, NCC director general, commented that the majority of motorhomes are still on the road at ten years old.

"Because a significant proportion are diesel and their average annual mileage is usually considerably lower than that of a car or van, at that age they still have a long and useful life ahead of them," he stated.

However, caravan insurance policyholders whose vehicles are becoming unroadworthy may be happy with the news that they will receive financial help towards investing in a new model.

Earlier this month, the NCC said that it hoped the government would introduce such a scheme, in which consumers would receive at least £1,500 towards a new vehicle when they take their old motorhome to be scrapped.

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