It’s that time of year where we get out and enjoy the outdoors. Whether your thing is camping, heading to the cottage, or just hitting the open road to where ever it takes you – often times a trailer may be a part of that plan. When it comes to insurance, there are some things you should know in order to make sure you’re protected, like trailer insurance.
If your trailer is hitched or not makes a difference, too.
When trailers are covered on a policy
The third-party liability portion of your car insurance policy will extend to your trailer if and while it’s being towed on your vehicle. It’s important to ensure that your trailer is hitched appropriately. This means it’s deemed road-worthy, and all indicator lights, and break lights are fully functional.
Here’s where things get interesting: your trailer won’t be covered by a normal car insurance policy once it’s unhooked form your vehicle. That has implications for everyday scenarios:
- If someone sideswipes your trailer or pops a tire while it’s resting on the side of the road while detached from your vehicle, then it wouldn’t be covered.
- If your detached trailer is damaged or destroyed while sitting in someone else’s driveway, then it probably wouldn’t be covered.
You might need an endorsement from your insurer to make sure that it’s properly covered at all times and all locations. Every insurer is a little different, so it pays off to speak with your insurance broker about how car insurance works with trailer insurance.
Depending on which insurer or brokerage you’re with, it could also be worth inquiring about trailer coverage through comprehensive insurance coverage for your vehicle.
Does my trailer need its own policy?
Depending on your contents insurance coverage (part of a home policy), your trailer might be covered as part of your property while on your home’s premises—but trailers are expensive, and contents coverage can become maxed out quickly during a claim. If you have a minimalist amount of contents coverage, then your trailer might account for most of your coverage limit. Clothes, electronics, and furniture need to be replaced with that money as well! You can account for that by increasing your contents coverage limit as long as you’re sure the trailer is covered that way.
You’ll need to triple-check with your broker, but it’s worth knowing!
For high-value trailers, most insurance companies recommend purchasing a separate RV & trailer insurance policy to make sure you have maximum protection on your investment. Your insurance broker can help with this as well.