car trailer insurance

How Do I Insure My Trailer?

Anthea Auto, Personal Property Insurance

We’re often asked if a trailer should be covered under an auto policy or a property policy? The answer may surprise you.

Personal use trailers, like utility trailers, camper trailers and cabin trailers actually require the combined coverage of both your auto and property policies.

Understanding Trailer Coverage

This isn’t as strange as it first sounds. Whenever your trailer is being towed, your auto policy automatically extends liability, accident benefits and uninsured automobile coverage. Some policies provided limited coverage for direct compensation for some trailers.

Direct compensation is when your insurer pays for the damage to your vehicle or trailer when the other person in the accident is at fault. This extension of coverage does not apply to commercial trailers, trailers over 4,500 kilograms or trailers designed or used to live in.

When a trailer is temporarily parked in a trailer park, it is your homeowners or tenants policy that provides liability coverage. If you use your trailer for seasonal purposes, like a cottage, an endorsement to your homeowners policy should be added to cover the trailer and its contents.

A Smarter, Cheaper Alternative

While it is possible to add a trailer to your auto policy and cover it for direct compensation, a better and less expensive way is to choose a special trailer package. Designed mainly for campers and cabin trailers, this coverage protects you against most perils including fire, wind, lightning, theft and vandalism.

Under this type of policy, there’s coverage for collision, often including direct compensation, and usually an extension to cover contents of the trailer.

People often lend or rent their trailers. You should make sure this practice is covered by your policy. Before you lend your trailer, you should clearly understand who pays in the event of a loss.

Trailers and their uses vary from one individual to another. Call us if you wish to review your coverage.