There are some quite notable differences between the level of cover offered by caravan insurance providers, figures from Defaqto reveal.

The research group found there are currently 41 providers offering 66 products, making it a relatively niche market compared to the majority of sectors.

Statistics reveal that 70 per cent of policies will charge an administration fee if a policyholder makes any amendments, with the charges varying from £8 to £50.

Furthermore, 45 per cent of providers offer a no claims discount, but just six per cent will protect this discount as standard.

Mike Powell, Defaqto's insight analyst for general insurance, said: "It is particularly important for insurers to understand the market landscape to be able to identify or maintain their competitive advantage."

He added that this is the case whether an insurer is new to the market, or they are reviewing an existing product already available to customers.