Caravan Insurance

The increase in fuel duty outlined in the recent Budget speech may have come as a blow to caravan insurance policyholders.

Chancellor Alistair Darling outlined a forthcoming increase of 2p per litre that will come into force in September, as well as inflation-plus-1p rises every April over the next four years.

According to WalesOnline.co.uk, this will rake in an extra £1.25 billion in fuel duty between 2010 and 2011.

The increase was announced alongside the scrappage scheme, under which Britons will receive a grant of up to £2,000 towards the cost of a greener vehicle when they send their old car of over ten years to be scrapped.

Ian Ralph, director of website UKCampsite.co.uk, commented: "The further increase in fuel duty is indeed a blow to motorhome and caravan owners, although I don't believe many perceive it to be directly related to funding the scrappage scheme."

He went on to say that amid prominent environmental concerns, many caravanners feel their holidays provide them with an opportunity to go green, as using their mobile home involve no CO2-emitting plane flights.

The National Caravan Council recently commented that it was disappointed that the Budget failed to outline incentives to persuade Britons to opt for greener caravan holidays.

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