Towing a trailer comes with its own risks, from overturning it to jackknifing and accidents do happen. From simple utility trailers to big travel trailers, people are asking if their auto insurance will also include their trailer.
The general rule is that your liability insurance does transfer to the trailer that you are towing. If you cause damage to another vehicle while backing out, damage to the other vehicle would be covered under your auto insurance policy. However, contents of your trailer and the trailer itself are not insured, unless you have separate coverage for your trailer and contents. Your agent can best explain what is covered and excluded. For the coverage to apply you must own the trailer, so if you are renting a trailer make sure to ask for separate coverage from the rental place.
I have a trailer for my business:
If you have a utility trailer that you are using in connection with your business (i.e. landscaping, construction contractor etc.), you can insure it with your commercial auto policy. That way you can insure it for physical damage coverage. For any tools or equipment that you are carrying your business-owners insurance (BOP) can cover.
Travel Trailers:
If you have a travel trailer you can also insure it for physical damage coverage. The benefit of having a stand-alone policy is you have coverage on the trailer even after it is detached from your vehicle. This policy provides liability insurance, coverage on your contents and provides insurance against damages from fire, lightning, hail, windstorm and vandalism.
If you are using a travel trailer as a permanent residence, ask you agent or your insurance company for details. Some insurance companies only allow recreational use of a travel trailer and not as permanent residence.
Our agents at Bargain Insurance Connection can best explain you the coverages you need if you are towing a trailer. Give us at quick call at 816.453.7722 for a quote on auto insurance and trailer insurance.