Cargo & Enclosed Trailer Insurance

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Written by Trusted Choice

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Enclosed cargo trailers come in sizes small enough to haul a few bicycles, or large enough to haul cars or ATVs. Some include amenities such as showers and toilets. Enclosed cargo trailer insurance can ensure that your cargo trailer, no matter how big, is protected.

To get information and quotes on enclosed trailer insurance, get in touch with a local, independent agent in our network. These agents have access to many different insurance companies and can shop for coverage at an affordable rate for you.

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Tips for Towing Your Cargo Trailer Safely

  • Place your heaviest items over the axles of your trailer – imbalance can cause swaying or fishtailing
  • Make sure your tire pressure meets the manufacturers guidelines for the load you’re carrying
  • Be sure you know your trailer’s weight capacity and how heavy your load is; an oversized or excessively heavy load can result in an accident, blown tires, or a bent frame

Cargo Trailer Insurance for Business and Personal Use

Cargo trailers serve the needs of individuals and businesses alike. Individuals may use them to haul gear, bikes, motorcycles or camping equipment. Sports teams, schools, musicians and rock bands transport gear, supplies and musical instruments to their destinations. 

There are many larger businesses that use enclosed trailers for cargo transport – trucking companies, food and drink vendors, moving companies and professional vehicle racing teams, to name a few. The coverage you need will be based on a number of variables, such as:

  • Whether you use it for business, personal use, or both
  • How you use the trailer; for example when used as a living compartment, a cargo trailer has a different set of risks than if it just hauls gear
  • The size, weight capacity and value of the trailer
  • Whether you cross state lines

An independent agent in our network can help to evaluate your risks and insurance needs, and can help ensure that you meet any state requirements with regard to coverage for your trailer. 

For example, if you are buying a trailer for commercial purposes, you may need coverage for the trailer to cover a variety of risks including your company’s liability.

How to Add Cargo Trailer Insurance to Vehicle Coverage

If your cargo trailer is purely for personal use, your vehicle insurance may cover your trailer, but not in every case. Your car or truck insurance may need to be altered with an endorsement for your trailer.

The following are some important points to go over with a knowledgeable insurance agent:

  • If your trailer is covered through your vehicle insurance, it may only be covered for liability risks. This means that if your trailer is damaged or destroyed, you may not receive compensation for it.
  • Your trailer may be covered, but not the contents.
  • Your trailer and contents may be covered, but not for the replacement value.
  • Your cargo trailer may be covered if you are the one towing it, but not if you lend it to someone else.
  • Your trailer may be covered for liability, comprehensive and collision while it is attached to your vehicle, but may have only minimal coverage (for example, through your homeowners policy), when detached and parked.

Coverage varies depending on your state and the company you are insured with, and most companies handle commercial and personal trailers differently. So it is very important to work with an agent who can take the time to go over your coverage with you in detail.

What Does Cargo Trailer Insurance Cover?

Cargo trailer insurance can cover many risks you face, or just your liability, depending on your preferences. Your cargo insurance can be tailored to your needs, and could cover you for some, if not all, of the following:

  • Damage to the trailer itself, whether from a roadway collision, damage from severe weather, fire, or vandalism
  • Damage to the contents of the trailer
  • Theft of the trailer
  • Your liability risks, in the event that you cause property damage or personal injury with your trailer
  • Damage caused by an uninsured or underinsured motorist in a collision

You can typically purchase optional coverage for after-market add-ons, such as a specialized ramp or stairs, or equipment you are hauling on or in the trailer. Work closely with your agent to ensure that all of your items are covered.

Is This Type of Insurance Required? And what Does It Cost?

Cargo trailer insurance is not required by law for personal use, but may be required by your lender if you are financing the purchase of the trailer. If you have a smaller cargo trailer for personal use only, then you can typically get a policy for less than $100 per year. 

If it is a commercial-use trailer, you could pay a couple thousand dollars or more per year, depending on the size and value of the trailer, and also the nature of your business.

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How Can I Find Enclosed Trailer Insurance and Get Quotes?

Unlike homeowners’ or vehicle insurance policies, cargo trailer insurance can be more difficult to find. Some of the larger national insurers provide policies, but they may not provide the best coverage or the best rates for you. 

There are also smaller, specialty insurers that may only offer trailer insurance coverage - but they can be harder to track down. To get the insurance policy that's best for you, collecting a few quotes before you purchase from a variety of insurers is a great approach.

Independent agents in our network can find the coverage you need. These agents have access to multiple insurance companies of all sizes, so they can find a variety of quotes to suit you. 

Your independent agent can help you compare quotes and determine the best coverage for your needs. Contact a local member agent today to find the right coverage and get peace of mind.

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