Auto Insurance And Trailering: What's The Coverage?

If you own a trailer, you might be wondering if your auto insurance covers it. The answer is: it depends. In most cases, your car insurance will cover liability for damage caused by a towed trailer, but only if it is connected to the insured vehicle during the incident. However, it will not cover accidents caused by a trailer with its own motor. It's important to check with your insurance provider, as some policies may only cover certain types of trailers, and there may be exclusions for business use or specific types of trailers. Additionally, your auto insurance may not cover physical damage to the trailer itself or its contents, so you may need to purchase separate insurance for that.

Liability insurance for a trailer being towed

One crucial factor is the ownership of the trailer. Liability insurance usually covers trailers that are owned by the named insured on the towing vehicle's auto policy. If the trailer is registered in someone else's name, it may not be covered under your policy. Additionally, the trailer must be designed to be towed by a motor vehicle and attached to the towing vehicle for liability coverage to apply.

The type of trailer also plays a significant role in determining liability coverage. Trailers used for business or commercial purposes typically require separate commercial trailer insurance. This includes trailers used for farming, ranching, or other occupations. Personal trailers, such as those used for recreational activities or hauling boats, ATVs, or cars, are more likely to be covered under your auto insurance policy.

It is important to note that liability insurance for a towed trailer generally does not cover accidents caused by a trailer with its own motor. Additionally, liability coverage usually extends only to third-party claims and does not cover damage to the trailer itself. For comprehensive and collision coverage on the trailer, separate insurance may be required, and the trailer may need to be listed on the declarations page of your policy.

Furthermore, the requirements for trailer insurance can vary by state and insurance company. While some states and insurers extend liability coverage to towed trailers, others may require a separate policy or an endorsement to your existing auto insurance policy. Therefore, it is essential to review your policy carefully and consult with your insurance provider to understand the specific terms and conditions of your liability coverage for a towed trailer.

Comprehensive and collision insurance for a trailer being towed

When it comes to insuring a trailer, it's important to understand the different types of coverage available. Comprehensive and collision insurance are two essential components of trailer insurance that provide financial protection in various scenarios.

Comprehensive Insurance

Comprehensive insurance for a trailer covers incidents that are typically out of the owner's control. This includes events such as theft, vandalism, and weather-related damage. For example, if your trailer is stolen or vandalised, comprehensive insurance will provide financial coverage for repairs or replacement. Additionally, it covers damage caused by natural disasters like storms or fires. This type of insurance ensures that you are protected against unforeseen circumstances that can cause significant financial losses.

Collision Insurance

Collision insurance, on the other hand, focuses on damage to the trailer resulting from a collision or accident. This insurance option is applicable regardless of fault in the crash. So, whether you are at fault or not, collision insurance will cover the cost of repairing or replacing your trailer if it is damaged while being towed or even while parked and unattended. This is particularly important when towing a trailer, as accidents can happen, and you want to ensure you have the necessary coverage to repair or replace your trailer.

Importance of Comprehensive and Collision Insurance

These two types of insurance are crucial for trailer owners as they provide financial protection in a wide range of situations. While liability insurance may cover damage caused by the trailer to other vehicles or property, comprehensive and collision insurance focus on protecting the trailer itself. This distinction is important because standard auto insurance policies typically do not include coverage for the trailer itself. Therefore, by purchasing comprehensive and collision insurance, you can have peace of mind knowing that your trailer is covered in case of accidents, theft, or natural disasters.

Additional Considerations

When considering comprehensive and collision insurance for a trailer, it is recommended to consult with an insurance agent to ensure you have the appropriate coverage. Factors such as the trailer's intended use, its value, how often you plan to use it, and its size can influence the cost of insurance. Additionally, it is worth noting that some insurance companies offer the option to add comprehensive and collision coverage to your existing auto policy, while others may require you to purchase a separate policy specifically for the trailer. Therefore, it is essential to review the specifics of your insurance policy and confirm with your provider to ensure you have the right coverage for your trailer.

When your trailer won't be covered by auto insurance

If it's not a personal trailer

If your trailer is used for business purposes, your personal auto insurance won't cover it. This includes trailers used for farming or ranching, or any other occupation. In this case, you'll need to purchase commercial trailer insurance.

If it's a rental trailer

If you're renting a trailer, your auto insurance won't cover it. You'll need to purchase the rental company's insurance to be covered.

If it's not attached to your vehicle

Your auto insurance may not cover your trailer if it's not attached to your vehicle. Check with your insurance provider, but you may need to purchase a separate policy to cover your trailer when it's parked or unattached.

If it's not registered to you

Your trailer may not be covered if it's not registered to you. Check with your insurance provider, but you may need to be the registered owner of the trailer for it to be covered.

If it's not listed on your policy

Some insurance policies require you to list your trailer on the declarations page of your policy for it to be covered. Check with your insurance provider to see if this is necessary.

If you don't have liability coverage

Liability coverage will cover any damage or injuries caused by your trailer to other people or their property. However, it won't cover damage to your trailer. You'll need to purchase additional coverage, such as collision or comprehensive insurance, to protect your trailer from accidents or other mishaps.

If you're not the named insured on the towing car's policy

With some insurance providers, your trailer will only be covered if you are the named insured on the towing car's auto policy. Check with your insurance provider to see if this is a requirement.

If you're hauling a boat

If you're using your trailer to haul a boat, your boat policy won't cover the trailer. You'll need to purchase a separate policy or add-on to your existing policy to cover your trailer.

If you're hauling valuable personal items

Your auto insurance may not cover the contents of your trailer. If you're hauling valuable personal items, you may want to consider purchasing additional coverage to protect them in case they are damaged or stolen.

If you don't confirm coverage before an accident

If you don't confirm whether your auto insurance covers your trailer, you may have to pay out of pocket if an accident occurs. It's important to check with your insurance provider to see if your trailer is covered and what specific situations are included in your coverage.

When your trailer will be covered by auto insurance

When will your trailer be covered by auto insurance? This depends on several factors, including the type of trailer, its usage, and the insurance company and state you're in. Here are some scenarios where your trailer may be covered by auto insurance:

Liability Coverage

The liability portion of your auto insurance policy typically covers damage or injuries caused by a towed trailer. This means that if your trailer causes an accident and you are found liable, your auto insurance will cover the damages to other people's property or vehicles. However, it is important to note that this coverage usually does not extend to damage to the trailer itself.

Owned vs. Rented Trailers

Auto insurance providers generally provide liability coverage for trailers if you own them. However, they typically do not cover rented trailers, such as those from companies like U-Haul. In such cases, you would need to purchase the rental company's insurance to be covered.

Trailer Type and Usage

The type and usage of your trailer also play a role in determining coverage. Trailers designed to haul boats, ATVs, cars, or other motor vehicles typically fall under the auto policy of the towing vehicle. On the other hand, travel trailers, such as small pop-up campers, usually require separate insurance coverage. Additionally, trailers used for business purposes generally need commercial trailer insurance, which provides coverage for a wider range of scenarios and higher liability limits.

Insurance Company and State-Specific Policies

Trailer coverage can vary depending on the insurance company and the state you're in. Some insurance companies extend liability coverage while the trailer is attached to your motor vehicle, while others require a separate policy or an endorsement to your personal auto insurance to cover the trailer. It's important to review the specific terms and conditions of your insurance policy and confirm with your provider to understand the extent of your coverage.

Additional trailer insurance options

If you own a trailer, it's important to understand the different types of insurance coverage available to protect yourself financially in the event of an accident or damage. Here are some additional trailer insurance options to consider:

• Collision coverage: This type of insurance covers damage to your trailer caused by a collision with another vehicle or object. For example, if you accidentally back your trailer into a parked car, collision coverage will help pay for the repairs to your trailer. It covers damage caused by you while the trailer is being towed or even when it's parked and unattended.
• Comprehensive coverage: Comprehensive insurance protects your trailer from incidents other than collisions. This includes vandalism, theft, contact with animals, falling objects, and severe weather damage. For example, if your trailer is vandalised or stolen, comprehensive coverage will provide financial protection.
• Replacement cost/personal effects coverage: This type of coverage provides protection for the personal property inside your trailer. It offers financial reimbursement for damaged, stolen, or destroyed items. This is especially important if you use your trailer to transport valuable gear or equipment.
• Emergency expense coverage: This coverage provides financial assistance for transportation and lodging expenses if your trailer becomes disabled or unusable more than a certain distance away from your home. It helps cover the costs of unexpected emergencies while you're on the road.
• Commercial trailer insurance: If you use your trailer for business purposes, such as hauling livestock or freight, you will need to purchase commercial trailer insurance. This type of insurance is specifically designed to cover trailers used for commercial activities and provides the necessary liability and property damage protection.
• Umbrella policy: An umbrella policy offers additional coverage beyond your auto, watercraft, or homeowner's insurance limits. It provides extra protection in the event of a lawsuit or if the damages exceed your primary insurance coverage. This type of policy can help cover expenses related to injury or property damage caused by your trailer and the contents within.
• Roadside assistance: Adding roadside assistance to your trailer insurance can provide peace of mind when travelling. It covers situations where you might need assistance, such as a flat tire, mechanical issues, or if your trailer becomes disabled. This add-on service can help prevent you from being stranded on the side of the road.

When considering additional trailer insurance options, it's important to assess your specific needs and the types of risks you may encounter. Discuss your options with an insurance agent to ensure you have the appropriate coverage for your trailer and its contents.

Frequently asked questions