Renting out your campervan: how insurance works with PaulCamper# Rental Tips
Insurance conditions aren’t exactly the most riveting of topics. That’s why we’ve read them for you and summarized the most important information about insurance and claims handling. After reading this article, you will be well-informed about how your camper is insured with us and what happens in the event of a claim when you’re renting out your campervan with PaulCamper.
The contents of this article refer to the insurance conditions within the United Kingdom. These only apply if the vehicle is rented in the United Kingdom and the campervan owner is using Allianz insurance from PaulCamper.
Renting out your campervan: Getting started
At PaulCamper we place great emphasis on comprehensive cover for all our campers. That’s why all vehicles rented from us also come with the following insurances:
- Fully-comprehensive insurance
- Third-party insurance
- Protection cover
As your private car insurance will most likely not cover damage caused during a rental, you will need special additional insurance.
With PaulCamper you can choose between two options. Either you choose the PaulCamper AddOn insurance, which we have designed together with our Allianz insurance partner and which is best suited for occasional rentals, or you insure your vehicle with so-called self-drive hire insurance. This is more suitable for commercial rentals. In the next sections, you will find out how this works and which insurance is best for you.
PaulCamper AddOn Insurance
For occasional rentals
If you are not a commercial renter but want to rent out your camper privately and only occasionally, then this additional insurance is perfect for you. Developed in conjunction with our insurance partner Allianz Insurance plc, it includes full insurance cover and is automatically activated as soon as your vehicle is rented on PaulCamper.
Your private car insurance will continue to run as normal during the rental period, but will not be claimed in the event of damage, as the AddOn insurance is responsible during this time. This means that your private no-claims bonus or insurance level remains unaffected.
What is included in the insurance cover?
Motor vehicle liability cover
Covers damage caused by the renter to others as a result of an accident, including damage to property and personal injury. The following things are covered:
- £20,000,000 indemnity in respect of a Private Car.
- £5,000,000 indemnity in respect of any Insured Vehicle other than a Private Car.
- £5,000,000 indemnity in respect of any Insured Vehicle for damage caused by or arising out of acts of Terrorism.
- £1,000,000 indemnity in respect of any Insured Vehicle carrying Hazardous Goods.
For damage caused to your vehicle by the renter, including damage in your absence, e.g. if someone else damages the parked vehicle and disappears.
Cover for theft, stone chips, storm damage.
Covers damage to the interior of the camper e.g. damaged cupboard doors. etc.
Europe-wide cover with 24-hour breakdown assistance*
We have a cooperation with “The AA” which provides breakdown cover for all the Allianz insured campervans. It covers all services for towing, recovery, and journey home (for the renter in the event of vehicle damage) and your travel costs incurred in the event of vehicle recovery.
All the Self-Drive Hire-insured campervans need their own breakdown assistance. That’s a mandatory obligation that we check before we onboard the campervan or motorhome.
*Breakdown cover via Allianz can be used by vehicles up to 3.5t gross vehicle weight.
Renting out your campervan: the deposit
The deposit is often confused with the excess. However, you must consider these terms separately.
The deposit is paid to you by the renter in cash on collection or beforehand by bank transfer and serves as security in the event of damage.
“The deposit is a security payment which the renter hands over to the owner before the journey and which can be used by the renter to pay the damage costs incurred in the event of damage.”
You keep the money with you and hand it back to the renter immediately and in full if the booking was completed without damage. The return is also recorded in the handover protocol.
If damage occurs, you as the owner are entitled to retain the deposit in full for the time being. If the damage is settled by the insurance company, you use the deposit to settle your excess. If the amount of damage is less than the excess, the deposit is partly used to repair the damage. The renter must then be reimbursed for any difference in a timely manner.
As an owner with PaulCamper, you determine the amount of the deposit yourself. As a guideline, we recommend that you set at least the value of the excess because this way you already have the financial means for a due damage settlement at hand. The chosen amount is always visible in the display of your camper as well as in the rental contract. With the PaulCamper AddOn insurance, the excess is set at £1500. We, therefore, recommend that you retain this amount as a deposit.
The excess or deductible is the amount an insured person pays in the event of a claim. If you choose the PaulCamper AddOn insurance (i.e. you insure your vehicle non-commercially and with your own self-drive hire insurance), the deductible is set at £1500. This is the amount payable to the insurance company in the event of damage by a renter and subsequent repair.
In principle, the renter is responsible for paying the excess in the event of a claim. For a simple and safe settlement, the renter’s deposit described above can now be used to cover the excess. Therefore, we recommend that you set the deposit to at least the amount of the excess. This way you already have the financial means for the claim settlement at hand.
How much will PaulCamper AddOn insurance cost me?
The premium for the additional insurance is calculated by our booking system to suit your vehicle and the duration of a booking. The amount of insurance is 20% of the gross rental price you use for your campervan on the PaulCamper website. But there is a minimum fee which is £27,68 at least.
When you “list your campervan” in the online form, the system will automatically show you the respective costs for the insurance based on your type of motorhome and the rental price you have set.
Using our Allianz AddOn insurance costs you no activation fees, no annual fees, and does not require you to terminate the insurance. Your camper is only included in the insurance cover for each rental. Important is just if for any reason a trip is extended while on the road, this must be processed through the website which will extend the insurance cover also. Otherwise, the vehicle will not be insured.
Would you like to read more about the terms and conditions of your AddOn insurance? Then you will find further links below. Of course, our support team will also help you with any questions you may have about the insurance and the requirements for participation.
Self-drive hire insurance
Renting out your campervan: for commercial rentals
For commercial rentals, you need special self-drive hire insurance for your camper. This has a higher annual premium than camper insurance for private use because it also covers all use during the rental period.
As a commercial landlord, you can take out any self-drive hire insurance yourself. You provide the insurance to the renter, pay the premium and calculate it into your rental price yourself. Your insurance coverage is stored in your camper profile and displayed for renters on the respective camper page and also shown in the booking process.
As a prerequisite for renting out with PaulCamper, your self-drive hire insurance must have at least the following coverage:
- Fully comprehensive coverage including third-party liability insurance.
- Europe-wide breakdown assistance with a 24-hour helpline.
- Including services for your renter to travel home in case of vehicle damage.
When is self-drive hire insurance worthwhile?
Unfortunately, this question cannot be answered so easily and must be thought through individually by each owner. The decision depends, among other things, on the price per rental day, the type of vehicle, and the insurance fee of your chosen self-drive hire insurance.
We hope that we could shed some light on how our insurance works. If you have any further questions, you can always get in touch with us and we will help you out.