Trailer Insurance: Do You Need It?

Trailer insurance is a must-have if you are planning on hauling a camper or boat a long distance. Research all your options before you decide on what type of coverage you want — securing an affordable plan to keep your trailer and its contents safe is the smartest way to begin your journey.

First Step: Talk to Your Auto Insurance Company

Legally, you are required to have auto insurance on your tow vehicle, so you definitely are covered on that end. You probably have reviewed your coverage and made sure you can afford the deductible for your liability, comprehensive and collision policies.

But how far does this coverage extend?

In most cases, a typical auto insurance policy’s liability coverage extends to any trailer being pulled by the vehicle. But liability insurance only covers the cost of personal and bodily damages the trailer might inflict on others.

Most policies don’t extend comprehensive and collision coverage to a towed trailer. However, before you start looking for extra insurance, call your agent and find out the specific details on your policy.

Comprehensive and Collision Coverage

One of the main reasons any trailer owner invests in trailer insurance is for both comprehensive and collision coverage. Comprehensive coverage protects you from expenses resulting from damage to your trailer, such as from a fire, falling tree or vandal; collision coverage pays for the repairs after accidents.

If your trailer is financed and you are in an accident, you still will be responsible for paying off the loan even if your trailer is a total loss … if you don’t have the insurance you need. If you do have coverage, all you have to do is pay the deductible, then you can rest easy knowing that the insurance company will take care of the rest of the bill.

Contents Coverage

What’s inside your trailer? If you are towing an antique car or expensive snowmobiles, you will definitely want to consider adding content coverage to your policy as well. Otherwise, your policy will pay for damage sustained to the actual trailer as a result of an accident, but you’ll bear the cost of damage or destruction to your personal property stored inside.

Shop Smart

Make sure that if you use your trailer for business purposes, you invest in a commercial policy for coverage too.

Check with your insurance company and see if trailer insurance is an option, but shop around to find quality coverage. Don’t settle for the lowest price without looking into the details — make sure the coverage will be adequate to your needs.

Whenever your car breaks down, no matter what you’re towing, trust a company like Stauffer’s Towing that has experience helping clients out of the most precarious situations, regardless of their trailer insurance coverage.