Specialist motorhome insurance brokers rely on the success of the recreational vehicle market as a whole in order to grow and expand their businesses, as without a steady amount of sales there isn’t sufficient demand for motorhome insurance products. Furthermore, it’s not just the motorhome market in the UK that brokers need to keep an eye on, as the US and UK markets are closely linked, with some of the most popular recreational vehicle brands being American.
This is why brokers should take note of the fact that motorhome sales have been increasing steadily for a number of months now in both the UK and the US. In fact, the market is doing so well that Ford has had to increase their production of chassis for A-Class motorhomes.
According to Statistical Surveys, overall motorhome sales in the US were up 13% in May, with sales of A-Class motorhomes up 12% and C-Class motorhome sales up 14%. A-Class motorhomes are the largest and most luxurious types of motorhomes on the market, and the increasing demand for these types of recreational vehicles shows brokers that consumers are now more inclined to purchase high-end recreational vehicles and protect them with extensive insurance policies.
Ford sales analyst Erich Merkle said: “Motorhome sales are cyclical, and correlate with improving economic performance. Like boats, homes and luxury cars, motorhomes – especially Class A – are big-ticket items, so when we see a continued upward trend in sales, it means people have far greater confidence to make a large, discretionary purchase. We believe we will see further growth as the industry continues to recover. Demographic drivers of this overall growth in the RV market include retiring baby boomers with more time for travel and leisure.”
In the UK we are seeing reports of motorhome dealerships experiencing an increasing amount of interest from consumers, such as Salop Leisure who recently gained a huge amount of leads after their annual sponsorship of the Shrewsbury Flower Show. The company claim that at the show they gained one hundred per cent more quality sales leads compared to last year, which is good news for brokers as it means there is also a potential for them to receive more insurance leads.
Used motorhome and caravan specialist Caravan and Motorhome Sales is also benefiting from an increase in market demand, so much so that they are now helping a number of motorhome enthusiasts buy and sell motorhomes. Caravan and Motorhome Sales’ Shane Malpass said: “Every day we are picking up the phone to hear the enthusiastic tones of ‘sell my motorhome’ and ‘buy my motorhome’ and that’s exactly what we are doing day in, day out. We only buy and sell quality used motorhomes which we check thoroughly, and with years’ worth of experience, we confidently offer the most competitive prices in the industry’.”
Even though increasing demand for motorhomes benefits motorhome insurance brokers and enables them to expand their businesses, there are also some pitfalls that they should be aware of. For instance, motorhome insurance providers will need to address the issue of fraud, as with more customers looking for motorhome insurance there is a higher risk of fraud in the sector.
Once the summer has ended the demand for motorhomes and motorhome insurance will start to decline, however with the market being so lucrative right now brokers should be able to cover themselves during the winter months. All signs point to seeing motorhome sales and insurance leads increasing next year as interest in recreational vehicles both the US and the UK continues to flourish.
The increase in demand has created a large area of potential for brokers who have yet to explore this area of the leisure market, and the increase of brokers working with motorhome specialist insurers is expected to continue to rise with the market for motorhomes.
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