Trailer Insurance FAQs
Learn everything you need to know about trailer insurance from answers to some of the web's most frequently asked questions.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
You know you need to protect your trailer against losses due to collisions, other accidents, theft, vandalism, storm damage, and other disasters. But you might not know all of the important details about your policy, such as all the types of coverage it includes.
But whether your trailer is covered by regular trailer insurance, RV insurance, commercial trailer insurance, boat insurance, auto insurance, enclosed trailer insurance, or utility trailer insurance, many policyholders have the same questions. Use our guide to find answers to some of the most commonly asked questions about trailer insurance.
Table of Contents
Q. What Is Trailer Insurance?
Q. What Does Trailer Insurance Cover?
Q. How Does Trailer Insurance Work?
Q. How Much Does Trailer Insurance Cost?
Q. Is Trailer Insurance Required?
Q. How Much Trailer Insurance Do I Need?
Q. Does Trailer Insurance Cover Water Damage?
Q. Where Can I Get Trailer Insurance?
What Is Trailer Insurance?
Trailer insurance covers any type and size of trailer you use to tow and transport supplies, goods, vehicles, equipment, or animals behind your vehicle. There are many different types of trailers, varying widely in value from several hundred dollars to well over $100,000.
Trailer insurance covers horse trailers, motorcycle trailers, ATV trailers, travel trailers, camping trailers, pop-up tent trailers, enclosed trailers, boat trailers, utility trailers, and many other varieties.
The amount and type of insurance you need for a trailer depend on its use and value. Work with an independent insurance agent to find out what coverage you need for your trailer.
You might be able to add your trailer to your auto insurance or RV insurance policy, depending on the type you have. Your homeowners insurance may cover your trailer if it's small or is stored at home.
Further, if you have a commercial trailer, you can likely add coverage for it to your business insurance policy. This type of coverage can apply to auto haulers, side dump trailers, dump bodies and transfer boxes, concession trailers, dry freight trailers, flatbed trailers, gooseneck trailers, livestock trailers, logging trailers, and any other trailer you use for business purposes.
What Does Trailer Insurance Cover?
The type of trailer you have and how you use it dictate the kind of insurance coverage you need. Some of the coverage you may need for your trailer includes liability insurance, collision insurance, and comprehensive insurance.
Many trailer insurance policies include the following coverage:
- Liability coverage: This can cover third-party claims of bodily injury or personal property damage caused on, near, or by your trailer.
- Comprehensive coverage: Pays for damage to your trailer due to non-collision events, such as flood or theft.
- Collision coverage: Pays for damage to your trailer from a collision with another object, regardless of fault.
- Total loss replacement coverage: This can cover the full replacement of your trailer with a brand-new vehicle of the same model year or newer if your vehicle gets totaled due to a covered loss.
- Towing and roadside assistance coverage: This can cover the cost of emergency roadside services, such as towing, if your trailer breaks down and leaves you stranded on the road.
- Uninsured/underinsured motorist coverage: This can reimburse you for expenses related to collisions, etc., caused by drivers who don't carry adequate insurance.
- Full-timer's liability coverage: Those who live in their trailers full-time may need special liability coverage in case of bodily injury or personal property damage to others in their trailer or at a campsite.
The real risk of liability is often overlooked because you tow rather than drive a trailer, and it doesn't have its own engine. However, trailers can often become unhitched and cause extensive damage to others and their property.
Your auto liability may or may not cover damages from your unhitched trailer. Because of this, having enough trailer liability insurance is critical.
It’s best to talk with a knowledgeable independent insurance agent about your particular trailer, how you use it, and any unique risks you may encounter. Be sure to review coverage for the contents you carry in the trailer.
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How Does Trailer Insurance Work?
Insurance coverage protects the trailer owner in various ways. In some cases, the trailer and its contents may be covered under an existing policy, such as auto insurance or RV insurance.
Unfortunately, many trailer owners assume their auto policy or truck insurance covers the trailer towed behind the vehicle, and later discover the trailer needs its own insurance policy once the damage is done.
If you have the right coverage and your trailer is damaged, stolen, or destroyed, you can file a claim through your trailer insurance to recover some or all of your loss. For example, if another vehicle struck your trailer and caused considerable damage, you could file a claim through your trailer insurance policy and receive reimbursement through your collision coverage.
Keep in mind that you must pay your policy's deductible each time you file a claim before you receive any reimbursement.
How Much Does Trailer Insurance Cost?
The cost of your trailer insurance policy is highly dependent on the type of trailer you have. Additionally, the cost of trailer insurance can depend on several other factors, including:
- The age and condition of the trailer
- The make and model of the trailer
- The trailer’s dimensions
- The type and amount of coverage you need
- The policy's deductible amount
- Your driving history
- Your claims history
To determine how much trailer insurance you need and how much it will cost, talk to a local independent agent. Your agent can compare prices from several insurance companies so you can choose the best policy for your needs at a rate that matches your budget.
Is Trailer Insurance Required?
You're likely wondering, "Do I need trailer insurance?" Some states require trailer insurance, so it's wise to contact your state's motor vehicle division or research local laws online. However, while trailer insurance is generally not required in most states, it can still be a wise investment.
For example, if you have a trailer of significant value, such as an expensive custom-made trailer or a large horse trailer, you might want to consider getting coverage for liability, theft, and vandalism. This coverage can help you avoid having to pay out of pocket to repair or replace your trailer after an incident.
How Much Trailer Insurance Do I Need?
The amount of insurance you need depends on the type of trailer you own and its value. For example, if you have a fairly expensive trailer, you may want to have at least collision and comprehensive coverage in the event it is damaged or destroyed in an accident, or the trailer is stolen.
It's also crucial to consider having trailer liability coverage in case your trailer becomes unhitched, rolls away, and causes bodily injury or property damage to a third party. Liability coverage can help reimburse you for injuries and property damage to others, as well as expenses stemming from lawsuits if you are sued for the incident.
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Does Trailer Insurance Cover Water Damage?
Some trailers are water-tight, while others aren’t. If you tow anything that could be damaged by inclement weather, it’s a good idea to talk to your agent about coverage against water damage, for the trailer itself and for the items you're towing. Your agent will also be able to help you review your existing trailer insurance policy to determine if water damage coverage is included.
Where Can I Get Trailer Insurance?
Ready to find the best trailer insurance? We've put together a list of recommendations for our top-rated trailer insurance companies.
| Trailer Insurance Companies | Best For | Overall Carrier Star Rating |
| Progressive | Affordability |
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| Nationwide | Discounts |
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| Roamly | Full-time RVers |
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| Good Sam | Part-time RVers |
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| Allstate | Motorhomes |
|
An independent insurance agent can help you find trailer insurance from one of these outstanding carriers or others near you. Your agent has access to multiple insurance companies, so they're free to shop and compare trailer insurance quotes and policy options for you. And down the road, your agent can help you file trailer insurance claims or update your policy when necessary.