From your cross-country adventure to your new small business, the versatility of trailers allows you to transport anything, anywhere. Whether you are using a trailer for personal travel, transportation, or business, it’s also important to double-check whether it requires insurance before taking it with you on the road.
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Am I legally required to have trailer insurance?
While some states do require that drivers have insurance for their trailers when towing them, separate from their auto insurance, others do not. Even if your state doesn’t have a law regulating trailer insurance, you might cross state lines into one that does. This is a good reason, among others such as the potential to save thousands of dollars in the case that something goes wrong, to purchase trailer insurance.
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Is my trailer covered by my car insurance?
In many instances, your car’s liability policy will also cover any damage caused by a trailer being towed. However, keep in mind that trailers designed to tow boats or other motor vehicles usually require the same auto insurance policy as your car.
In addition, your car’s liability policy is unlikely to cover trailers used for business or motor vehicles. As well, if your trailer has its own motor and becomes unhitched, your car’s liability policy will not cover any damage caused by your trailer in this case.
If your trailer is not in use and is just being stored at your house, your homeowner’s insurance is likely to cover any damages to your trailer.
For the road, purchasing a separate insurance policy for your trailer will better cover you in case of an accident or damages, but the policy needed will depend on the type of trailer you are towing and its purpose.
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Types of trailers
As there are many different trailer types that serve different purposes, trailers are generally not covered by a single insurance policy. Here are a few common types of trailers and the kind of insurance you might need for them.
Utility trailer
Utility trailers are usually used for transporting machinery, recycling, or other bulky items. This type of trailer has an open top with raised sides, as well as a gate at the back that can open and close.
Since utility trailers are generally non-motorized, it’s probably not required that you have a separate insurance policy when towing this type of trailer on the road. Your car’s liability policy will most likely cover any damages or injuries sustained while towing the trailer.
Travel trailers
Larger than utility trailers, and usually motorized, travel trailers sometimes require their own insurance policy separate from your auto policy. These include motorhomes and pop-up campers that can house people for a limited amount of time.
In the chance that your insurance company would allow you to extend your auto policy to include your travel trailer, you would most likely have to prove that you own the trailer and have it registered under your name. Insurance companies typically do not extend your auto policy onto travel trailers that you are renting or borrowing from somebody else.
Commercial trailers
If you are using a trailer for business use, including dry freight trailers, dumpsters, dry freight trailers, or for the transportation of livestock, you will need to have commercial trailer insurance not covered by your typical auto insurance policy.
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What kind of insurance should I get for my trailer?
To ensure that you are fully covered from any damages or injuries sustained to your trailer, or in the event that your trailer causes any damages or injuries, it’s recommended that you purchase collision and comprehensive insurance policies.
In these types of policies, you will be covered in case of a collision or auto accident with your trailer, regardless of whether you were at fault or not. As well, the comprehensive aspect will ensure that any non-collision damages to the trailer are covered, which includes anything from weather events, vandalism, or theft. Also, keep in mind that you will still have to pay your deductible in order to receive coverage from the insurance policy.
Because there are so many different types of trailers, the cost of collision and comprehensive insurance policies are not one-size-fits-all. To calculate the price of insurance for your trailer, insurance policies will take into consideration the type of trailer, its intended use (i.e. commercial, travel, etc), the size of the trailer, how many miles the trailer has driven, how often you use the trailer, and the amount of coverage that you want.
In order to receive the best insurance coverage at a price that works for you, talk to an insurance agent. They will be able to research the best trailer insurance policies that fit your needs so that you won’t have to worry about towing your trailer without insurance again!
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