Trailer Insurance

Do you need trailer insurance?

That’s a lot more difficult question to answer than you might think, because the insurance requirements are different depending on the kind of trailer you own and just what events you want to cover. Trailer seem simple, almost pre-industrial, but today trailers share the road with an enormous amount of traffic and move at much higher speeds than even in the fairly recent past. In fact the UHaul still officially limit the maximum speed of many their trailers to 45 mph.

Most people do not pull trailer regularly, so even an experienced driver may make the wrong move with something goes wrong with a trailer. And of course, a lot can go wrong when towing a trailer, particularly larger and expensive fifth wheels, long livestock haulers, or large boat trailers. It the hitch comes undone a trailer can wreck havoc on the highway, because a loose trailer often comes at traffic from angles that other drivers simply do not expect.

Trailer Liability Insurance

Every year improperly hitched trailers cause a number of accidents, often serious accidents. The damages in these accidents can easily climb into the hundreds of thousands and sometimes millions of dollars, because often the victims are completely blameless bystanders who just happened to find themselves in the path of a runaway trailer. Juries tend to be extremely sympathetic to blameless plaintiffs, so you need to ask yourself if you could you pay a half a million dollar judgment out of your own pocket?

Trailers often are used to carry valuable items like antique automobiles or livestock and if you are involved in an accident while towing the contents of your trailer are likely to be damaged or destroyed. How much of a financial burden would it be for you to replace the items you generally transport on your trailer?

Towing a trailer vastly increases the difficulty parking and maneuvering the trailer and it is easy for inexperienced or inattentive drivers to damage the trailer or mail boxes, road signs, and buildings even at low speed. This might seem like a joke, because most people could afford a mail box, or road sign, but if you knock the chimney off of your next door neighbor’s house are you ready to pay for it.

Finally, if your custom toy hauler or 36ft fifth wheel is damage in a hail storm or even worse demolished in a tornado or flood, how are you going to pay to replace or repair it?

Trailer Insurance Law

In most states there are no laws requiring special insurance on trailers, but if you don’t know for sure check with your state’s DMV. However, the laws are different in the United Kingdom, Canada, and Australia, so if you are going to tow your trailer in those areas you should check their laws before finalizing your plans.

Liability Coverage

As a general rule if you are not concerned about covering the replacement value of the unit you are towing or its cargo, you do not normally need anything more than your standard auto insurance. Generally, the trailer is covered as an integral part of the vehicle while the unit is hitched to the car and the liability portion of you standard automobile insurance policy.

That makes things very simple, but unhitching the trailer from the car is probably going to unhitch the unit from your insurance and that can be a disaster.

Yes, in many cases if you are unhitching your trailer at home it is probably going to be covered by you homeowners insurance – maybe. You need to check your homeowners insurance policy carefully, because sometimes trailers are specifically excluded.

However, many people with travel trailers unhook them at campgrounds and that can be a serious hole in your coverage. A good homeowner’s insurance might cover it, but it might not. You have to know what your policy says and the language of insurance polices is so convoluted that it is often difficult for a layman to make heads or tails of it. The easiest way to check is to send your agent an email. That way you have his answer in writing in case there is ever a misunderstanding.

You homeowner’s property insurance might cover theft or damage to the trailer, but don’t bet on it unless you are certain. Again, you need to get an answer in writing from you insurance company, but email makes this so much easier.

Purchasing insurance

If you discover that you do not have the cover you want and need additional coverage, it is not difficult to can purchase additional insurance. Often insurance for the trailer can be carried as an “add on” to your home insurance policy or auto insurance policy, or you can purchase a “stand alone” RV and trailer insurance policy. The type and value of your trailer will determine which insurance coverage is most effective for you.

Utility trailers

Horse trailers, ATV trailers, lawn more trailers, and other light duty – general purpose trailer fall into this group, and the biggest question is the value of your cargo.

If you currently have separate insurance for the contents of your trailer or in case you are transporting things with little value, you probably will want to simply ad more coverage onto your auto insurance policy. This will cover you for collision and theft of the trailer, but will not include protection for your contents inside the unit.

Camper Trailers

If you’d like coverage for the contents, cargo, and furnishing of your trailer, in addition to collision and comprehensive insurance, you should probably purchase coverage included in your property insurance policy. This way, your home insurance extends to the contents of your trailer and you would be covered if anything inside the unit were damaged or stolen. This coverage usually does not apply if the unit is being used for a permanent residence, and not recreationally.

Fifth-wheel Travel Trailer

If you own a large travel trailer that contains appliances and other expensive items, your best bet is to purchase a separate RV and trailer insurance policy. This sort of policy has all the added coverage you need for your personal belongings and you can also customize your coverage based on the replacement value of your unit.

Boat trailers

Often when you are arranging to insure your boat, trailer coverage is included as part of the deal, so you do not need to purchase any additional protection. But it is best to check your policy to ensure you know what’s covered and if there are any limits to that coverage. If you’re not covered, a boat trailer is like a utility trailer and most likely your least expensive insurance alternative is always to add it on to your auto policy.

Buy Trailer Insurance

The biggest loop hole in most people’s trailer insurance occurs when a trailer is unhitched off of the owner’s property. If you are unhooking an expensive travel trailer or toy hauler at a camp ground or car show there is a pretty good chance that you need stand alone trailer insurance, because your trailer make not be covered in these situations.

In that case it is best to shop around with several insurance companies, because rates tend to vary widely depending on a variety of factors. So, get informed and get the protection you need.

How to Maintain a Trailer : Insurance for Trailers