Travel Trailer Insurance: Home Or Auto?

Travel trailer insurance is a special type of insurance designed to cover damage to a recreational trailer you tow behind your car or truck. Pop-up campers, fifth-wheels, and slide-on campers are all examples of travel trailers. While some homeowner or car insurance policies will allow you to add your trailer as an extra for a fee, it may not be your best option. Travel trailer insurance offers physical coverage much like an auto insurance policy, and also covers some specific liabilities that can arise only with a trailer, as well as the full replacement of your trailer and reimbursement for the damage or loss of personal belongings.

Travel trailer insurance: what is it and what does it cover?

Travel trailer insurance is a type of insurance coverage designed for recreational trailers that are towed behind a car or truck. It is sometimes sold as a kind of RV insurance or as an add-on to a regular car insurance policy.

The coverage provided by travel trailer insurance varies depending on the policy chosen. Basic liability coverage, which is usually included in a regular car insurance policy, typically covers any damage caused by the trailer to other people and their property when it is being towed. However, this does not cover damage to the travel trailer itself or its contents.

Additional coverage options for travel trailer insurance include:

• Comprehensive coverage: This insures the trailer against damage caused by events other than collisions, such as severe weather, fire, theft, or vandalism.
• Collision coverage: This covers damage to the trailer from a collision or accident, regardless of fault.
• Emergency expense coverage: This pays for lodging and transportation if the trailer is damaged and becomes unusable beyond a certain distance from home.
• Campsite/vacation liability: This covers bodily injury and property damage that occurs in and around the trailer when used for vacationing.
• Replacement cost coverage: This covers the cost of replacing items stolen or damaged within the trailer, up to a certain limit.
• Total loss replacement coverage: This provides a replacement for a totaled trailer, usually with a new one or a model of a similar age.
• Personal property coverage: This covers valuable items and equipment within the trailer, with the amount of coverage set by the policyholder.
• Medical payments coverage: This covers medical bills for the policyholder and their passengers if injured while in or around the trailer.

While travel trailer insurance is not legally required in most states, it is often recommended to protect against financial liability in the event of an accident or damage to the trailer. Lenders may also require insurance if the trailer is being financed through a loan. Additionally, home or auto insurance policies may not provide sufficient coverage for travel trailers, leaving gaps in protection.

Adding a travel trailer to your auto insurance policy

To address this gap in coverage, you have a couple of options. One option is to add physical damage coverage for your trailer to your existing auto policy. This will provide the necessary protection to repair or replace your trailer if it is damaged or destroyed in an accident. Keep in mind that this type of coverage may vary depending on your insurance provider, so be sure to review the specifics of your policy.

Another option is to purchase a separate recreational vehicle (RV) insurance policy. This type of policy is specifically designed to meet the needs of RV and travel trailer owners. It covers risks similar to those covered by auto insurance, including collision, comprehensive, and liability coverage. Additionally, it can provide protection for your personal belongings, equipment, and attached accessories, such as awnings and satellite dishes. RV insurance can give you peace of mind knowing that you have comprehensive coverage for your travel trailer and its contents.

When deciding between adding your travel trailer to your auto policy or purchasing a separate RV policy, consider your specific needs and usage. If you only use your trailer occasionally for short camping trips, adding it to your auto policy may be sufficient. However, if you live in your travel trailer full-time or use it extensively, a dedicated RV policy may be a better option to ensure you have adequate coverage for all scenarios.

Remember, the most important step is to consult with a licensed insurance agent or broker. They can help you navigate the complexities of insurance policies and ensure you have the right coverage for your travel trailer, giving you peace of mind while on the road or at the campground.

Adding a travel trailer to your homeowners insurance policy

Your typical homeowners insurance policy may cover your belongings stored inside your trailer like clothing, dishes, jewellery, and firearms, but it won't cover damage or loss of the trailer itself. On the other hand, a typical automobile policy may cover the trailer but not your personal possessions. This insurance will also fail to cover any item that's attached or towed behind your travel trailer, which means boats or recreational vehicles are often left with little or no coverage.

This lack of coverage is often why extra insurance that's tacked onto a pre-existing policy is much cheaper than official specialty trailer insurance policies. They're not comprehensive enough to protect you and your belongings from the most common catastrophic loss or damage. To fully protect yourself and your trailer investment, you need coverage that's designed for you and your trailer. These types of policies cover standard risks such as collision repairs and replacements, theft, and damage, but they also cover some specific liabilities that can arise only with a trailer, as well as the full replacement of your trailer and reimbursement for the damage or loss of personal belongings.

One last reason why simply adding your trailer onto your homeowners insurance policy isn't sufficient is the damage a claim can do to your insurance record. If your trailer is in an accident, you'd have to file a claim with both your car insurance and homeowners insurance providers. That means paying two deductibles in order to get reimbursed for one tragic event. Also, if you're like most people, these two claims could actually end up being with the same insurance provider (as many companies offer big discounts if you keep your auto and home insurance together). Suddenly you've gone from being a claims-free client to filing two claims in one year. This will eliminate any discounts you may be getting for your claims-free history, which will raise your annual home and car insurance rates. It may also prompt your rating to rise, meaning you could end up paying a higher premium because you've filed more than one insurance claim.

Instead, if you'd bought a specialty trailer insurance policy, you'd only have one deductible, one insurance provider, and one claim, making it a smoother and cheaper process. As a separate policy, you could also avoid losing your claims-free discount on your homeowners insurance policy. Specialty trailer insurance policies are a bit more expensive, but in the long run, this small amount each year will better protect your investment and result in fewer out-of-pocket expenses should the worst happen.

The cost of travel trailer insurance

Level of Coverage

The most basic and least expensive insurance option is liability coverage. Many auto insurance policies include liability protection on any towed items, including travel trailers. Comprehensive coverage insures your travel trailer against damages caused outside of collisions, such as hail, lightning, fallen trees, flooding, theft, and vandalism. Collision coverage, on the other hand, covers damages your travel trailer sustains in a collision with another vehicle or a stationary object, regardless of fault. Comprehensive and collision coverage are often sold as a package deal, and lenders may require you to carry both if your travel trailer is still under financing. Medical payments coverage can also be added to cover medical expenses for you and your passengers in the event of an accident. This is especially relevant if you live in your travel trailer, as passengers will be inside the trailer more frequently.

Value of Your Travel Trailer

The larger and more expensive your travel trailer is, the more it will cost to insure. This is because more valuable trailers will cost more to replace if they are damaged or destroyed.

Full-Time or Part-Time Use

If your travel trailer is your primary residence, you will need a full-time RV insurance policy, which will be more expensive than a typical policy. This is because the risk of accidents or damages increases with more frequent use.

Location

The cost of insuring your travel trailer will depend on where it is kept. Private storage locations with monitoring and protection may result in lower rates, while keeping your trailer on your own property can increase costs if property crime, such as theft or vandalism, is common in your area. Insurance rates may also be higher if you live in an area prone to natural disasters, such as flooding, wildfires, or tornadoes.

Personal Factors

Similar to car insurance, personal factors such as your driving record and credit score can impact your insurance rates. A history of collisions or a low credit score may result in higher rates. Additionally, if you intend to rent out your travel trailer, you may have to pay a premium, and some insurers may not allow it at all.

Companies that offer travel trailer insurance

Travel trailer insurance is designed for non-motorized trailers that are towed behind a vehicle. It provides coverage for the trailer itself and may also include liability protection at your campsite.

GEICO

GEICO offers insurance coverage for towable RVs and travel trailers, including conventional travel trailers, fifth-wheel travel trailers, travel trailers with expandable ends, folding camper trailers, and truck campers. They also cover toy haulers used to transport motorcycles and ATVs. GEICO offers a range of coverages such as total loss replacement, vacation liability, and emergency expense coverage. They also have a special windshield deductible, which charges nothing for RV windshield repair and $50 for replacement.

Progressive

Progressive offers RV insurance for a variety of vehicles and trailers, including fifth-wheel, pop-ups, truck campers, and Class A, B, and C motorhomes. They offer a large number of discounts, including original owner, multi-policy, pay-in-full, responsible driver, and prompt payment. They also offer disappearing deductibles, which reduce your deductible by 25% for each claim-free period, up to $0 after four periods. Progressive also provides coverage for full-time RVers, including personal liability and loss assessment.

Allstate

Allstate's RV insurance covers a number of motorhomes, including Class A, B, C, and toterhomes. They also offer special coverage for Airstream travel trailers, truck campers, pop-up campers, and fifth-wheels. Allstate includes options for full-time RVers, tow bar coverage, vacation liability, and emergency expense coverage. They offer five discounts for RV insurance coverage listed online, including RV safety course completion and insuring multiple vehicles. However, RVs over 20 model years old are not eligible for coverage.

Nationwide

Nationwide insures a range of RVs, including motorhomes, travel trailers, pop-ups, and campers. Their policies can be customized to your specific type of vehicle or trailer. They offer eight discounts, including discounts for RV association memberships, completing an RV safety course, and insuring multiple vehicles. They also have a strong record of customer service, with an average NAIC complaint index. However, quotes are not available online.

Good Sam Insurance Agency

Good Sam offers coverage for all types of RVs and provides coverage in Mexico. They offer customizable coverage options specifically designed for full-time RVers, including personal liability loss coverage, medical payments to others, personal belongings coverage, and emergency expense allowance. Good Sam also has a storage discount, allowing policyholders to suspend most coverage options and save up to 53% on premiums when the RV is in storage. However, Good Sam is an insurance agency, not a direct insurer, so coverage options may vary. There have also been some customer complaints about their roadside assistance.

Frequently asked questions