Does auto insurance cover towing a trailer?

When you buy a trailer, insurance might be the last thing on your mind. However, it’s crucial to have the right coverage in case something happens to your trailer.

While your liability insurance from your auto policy will probably pay for damage you cause while you’re towing, it won’t cover damage to your trailer. Instead, you’ll probably have to find alternative insurance by adding it to your car policy or buying a separate plan. You can read our article to find out more about what liability auto insurance coverage is.

Read on to learn more about what insurance covers when you tow a trailer. Then, compare rates with as many companies as possible to find the right policy for your trailer needs.

Does car insurance cover towing if you only have liability coverage?

Liability insurance covers damage you cause to other people in an accident, and their property damage coverage covers any damage done to their property or vehicle. Additionally, your liability insurance covers damage you cause with a trailer you’re towing.

Your trailer won’t be included in your liability insurance if it’s unregistered, not street-legal, or using the wrong type of vehicle to tow it. For example, a liability claim will likely be denied if you overload a trailer and try towing it with a small car.

If your insurance denies a liability claim, you’ll be responsible for paying for all damage you cause. For this reason, you must keep your trailer in good condition and use it correctly.

Most states require liability insurance before you drive or register your car. Getting the minimum car insurance required in your state is your most affordable option for coverage. You can check how much the average minimum insurance policy costs in your state below.

As you can see, minimum insurance rates are very affordable in most states. Some states with higher rates usually require more insurance due to factors like heavy traffic, high theft rates, or extreme weather risks.

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Does car insurance cover towing if you only have comprehensive coverage?

Comprehensive auto insurance isn’t required in any state, but you usually need it if you have a car loan or lease. Comprehensive insurance protects your car from damage outside of accidents, including fire, weather, theft, vandalism, and animal contact.

Unfortunately, your comprehensive insurance doesn’t automatically cover a trailer you’re towing. If something damages your car while you have a trailer attached, your comprehensive insurance will only pay for damage to your vehicle.

Are trailers covered under auto insurance of any kind?

Like your comprehensive insurance, collision coverage doesn’t cover trailers. That means that your insurance won’t cover your trailer if you hit someone and damage it during a tow.

While your standard car insurance policy won’t cover it, you can find coverage specifically for your trailer. Many companies sell add-ons for car insurance policies that extend coverage to your trailer and will pay for any damage in a covered event. You might also be able to buy a separate recreational vehicle policy for your trailer.

Do you need to let your car insurance company know you plan to tow something?

Since towing a trailer comes with more risks than everyday driving, you might think you must tell your insurance company before you start hauling. However, that’s unnecessary in most situations.

If you use your trailer to tow something occasionally, there’s no need to inform your company. As long as you make sure your trailer is in working order and you tow it correctly, your liability should cover you if you cause an accident.

However, there are times when you’ll need to speak with an insurance representative about towing. If you use your trailer to tow things for business, your personal coverage likely won’t extend to your trailer. In fact, you’ll probably need commercial auto insurance to cover your vehicle if you use it for work. Review our tips for buying cheap commercial auto insurance.

Do you need insurance on a trailer?

Knowing exactly what you need to keep your trailer covered can be a bit tricky. For example, some states require additional insurance for trailers, whereas others allow trailers to be covered by your car coverage. Additionally, some insurance policies cover your trailer but not the contents you carry.

Insurance companies often require you to list your trailer in the declarations part of your policy before you drive with it if you want any coverage.

To find out if you have to have insurance on a trailer, you should first speak with a representative from your insurance company. They’ll be able to tell you if your normal car insurance covers your trailer.

You also might be able to buy an endorsement for your policy that will protect your trailer. If you don’t want to add coverage to your insurance, you should consider purchasing a policy specifically for your trailer.

Many insurance companies offer policies that cover trailers, including collision and comprehensive insurance. It’s usually a good idea to buy a separate policy for an expensive trailer. Although your car insurance might cover it while you’re driving, your trailer will have zero coverage when parked or unattached.

The good news is that trailer insurance is usually affordable. Prices can vary significantly depending on the trailer you want to insure, but the average light trailer costs about $41 a month to cover.

Insurance Requirements by Trailer Type

The amount of coverage you need for your trailer depends on the type of trailer you plan to tow. The most commonly towed trailers include:

• Fifth-wheel trailer
• Conventional trailer
• Truck camper
• Pop-up tent trailer
• Horse trailer
• Cargo or utility haulers
• Toy hauler

Your car insurance often covers Toy haulers and conventional trailers, but you should check with a representative to make sure. You’ll probably need a separate policy for travel trailers.

Before you set out with a trailer, you should also check if what you’re hauling is covered. For example, if you’re towing expensive personal items, you should consider buying additional protection in case they are destroyed during transit. Car insurance does not cover personal items within a vehicle; the same goes for trailers.

You’ll also need separate insurance policies for vehicles you tow. Boats, dirt bikes, ATVs, or other off-road vehicles require their own policies. Those policies not only cover you while you’re using them, but the coverage also applies during transit.

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When are trailers not covered by your insurance?

Although your liability insurance likely covers a trailer you’re towing, there are situations when you won’t have any coverage at all.

Your insurance will not cover a rented trailer. If you need to rent a trailer, you should spend a little extra money and buy the company’s rental insurance.

A trailer you use for work will also likely not be covered unless you have commercial auto insurance.

No matter what you’re hauling, it’s always a good idea to check with an insurance representative first. They’ll be able to explain what your insurance covers and the company’s rules regarding trailers.

Find Insurance for Towing Today

Making sure your trailer is covered can be tricky, especially if state laws say you have to insure a trailer. However, you probably don’t have to worry about your trailer if you cause an accident while towing because your liability insurance likely covers it.

To cover damage done to your trailer, you probably need to purchase additional insurance. Make sure to get quotes from as many companies as possible because rates for trailer insurance can vary significantly.

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