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Trailer Insurance FAQ

What Is Trailer Insurance?

Trailer insurance covers any form and size of trailer that you might 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 over $100,000. Trailer insurance covers horse trailers, motorcycle trailers, ATV trailers, boat trailers, utility trailers, and many other varieties.

The amount and type of insurance you need for a trailer depends upon its use and its value. To find out what kind of coverage you need for your trailer, locate an independent agent in the Trusted Choice® network. A member agent in your area can shop for the right coverage from many different insurance companies and tailor a policy to your needs.

You may be able to add your trailer onto your auto policy, depending on the type of trailer you have. Your homeowners insurance may cover your trailer if it is small or is stored at home. Be sure to contact a knowledgeable agent about the right coverage for your needs.

What Does Trailer Insurance Cover?

The type of trailer you have and the way you use it will dictate the kind of insurance coverage you need.  Some of the insurance coverage you may need for your trailer includes liability, collision, and comprehensive. While collision covers damage from an accident, comprehensive will provide coverage for things like hail and storm damage, theft and vandalism.

The risk of liability is often overlooked because you tow rather than drive a trailer, and it does not have its own engine. However, trailers have been known to become unhitched and can cause extensive damage. Your auto liability may or may not cover damages from your unhitched trailer.

If you use your trailer for business, you will need to cover the trailer as part of your commercial policy which is often called “commercial trailer insurance.” This type of coverage would include auto haulers, side dump trailers, dump body and transfer boxes, concession trailers, dry freight trailers, flatbed trailers, gooseneck trailers, livestock trailers, logging trailers and any other trailer you may use for business.

It’s always a good idea to talk with a knowledgeable 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.

How Does Trailer Insurance Work?

Insurance coverage protects the trailer owner in a variety of ways. In some cases, the trailer and its contents may be covered under an existing policy, such as your auto insurance. Unfortunately, many trailer owners assume that their auto policy or truck insurance covers the trailer towed behind the vehicle, and discover the trailer needs its own insurance policy once the damage is done.

If you do have coverage and your trailer is damaged, stolen or destroyed, you can file a claim on your trailer insurance to recover some or all of your loss.

Let’s use an example to illustrate this further:

Bill purchases a utility trailer for $10,000 to haul personal watercrafts, outdoor gear, fishing equipment and other supplies to his lake cabin. He buys trailer insurance to cover collision, comprehensive and personal liability. To fully protect his trailer investment, he buys replacement value collision coverage, with a $500 deductible. When Bill’s trailer is completely destroyed in an auto accident, his trailer insurance pays for a new, similar trailer after he pays his $500 deductible. His personal watercraft is covered separately and he is able to claim most of the other trailer contents on his home insurance, which helps him to replace a significant portion of his outdoor gear.

How Much Does Trailer Insurance Cost?

The cost of this form of insurance depends on the value of your trailer, the state you live in, the size of the trailer and the contents you might be transporting. To determine how much trailer insurance you need and how much it will cost, talk to a local independent agent in the Trusted Choice network. Your agent can compare prices from a number of different insurance companies so that you can choose the best policy for your needs at a cost that matches your budget.

Is Trailer Insurance Required?

Some states do require that you have trailer insurance, so it is best to contact the motor vehicle division in your state. While trailer insurance is generally not required, it can 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. The best approach is to talk with an agent who can research trailer policies from several different insurance companies so you can compare them and find the one that best meets your needs.

How Much Trailer Insurance Do I Need?

The amount of insurance you need will depend on the type of trailer you own and its value. For example, if you have a fairly expensive trailer, you may want full collision and comprehensive coverage in the event that it is damaged or destroyed in an accident, or the trailer is stolen. You may also want liability coverage in the event that the trailer becomes unhitched, rolls away and causes bodily injury or property damage.

Does Trailer Insurance Cover Water Damage?

Some trailers are water tight and others aren’t. If you are towing something that could be damaged by inclement weather, it’s a good idea to talk to your agent about coverage against water damage, both for the trailer itself and for the items you are towing.

Where Can I Get Trailer Insurance?

The best way to find trailer coverage tailored to your needs is to contact a Trusted Choice member agent. Your agent will be able to help you evaluate your risks, determine the appropriate amount of coverage needed, and compare plans from a range of different insurance carriers.

Contact an agent in the Trusted Choice network today so you can feel confident that your trailer and the contents are fully covered when you hit the road.

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