Do I Need to Insure My Trailer?

If your trailer was damaged, stolen, or destroyed, and you had to repair or replace it, you could spend anywhere from a few thousand dollars to well over $50,000 depending on the trailer type. Although no state in the U.S. requires trailer insurance, you still might be wondering if you should insure your trailer.

What does trailer insurance cover?

Boat trailers, moving trailers, camping trailers, and horse trailers are a few examples of trailers that should be insured. Often, trailers are insured through the owner’s auto insurance policy. Check with your auto insurance agent to find out what type of coverage you might be able to get for your trailer.

  • Liability Coverage: This helps cover costs associated with personal injury or property damage you cause.
  • Comprehensive Coverage: This may pay for the cost of repairing your trailer if it is damaged as a result of vandalism, theft, fire, or severe weather.
  • Collision Coverage: If your trailer is damaged due to being in a traffic accident, collision coverage helps pay for the cost of repairs.
  • Content Coverage: This protects personal items being transported in the trailer.

How much does trailer insurance cost?

Trailers come in different sizes, so the cost for trailer insurance varies. For example, you may be able to add a small utility trailer to your car insurance policy for no additional charge. But it may cost you a few hundred dollars per year to insure a $75,000 horse trailer. Often, bundling your trailer insurance with your car insurance can save you money on your premium.

It’s important to know that if your trailer is used primarily for business purposes, you won’t be able to cover it under your personal car insurance policy. You’ll need to purchase a commercial trailer policy.

When you shop for trailer insurance, you’ll be asked some basic questions, such as the trailer’s make and model, purchase price, age, how it will be used, and the address where it will be stored. Have this information ready before you contact your insurance agent.

If you own a trailer and use it on a consistent basis, having the right coverage is important. Give a knowledgable agent a call and he/she can help you find the perfect policy to cover your trailer and your car.

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