Trailers come in all shapes and sizes and for some folks they’re an absolute must-have. For others they may be needed to transport a horse or livestock, and still others need a utility trailer to carry equipment for their lawn care or pool cleaning business. There are open trailers and enclosed trailers, but they all run the same risk of being involved in a collision when being driven with property in tow.
The question is: Are you covered for liability in the event that your trailer causes property damage or worse – bodily injury to another person? If your car insurance policy does not provide this coverage, you should purchase trailer insurance liability coverage so that you’re fully protected.
If you want customized insurance that covers you for liability risks involving your trailer, speak with your independent insurance agent for help finding the right coverage for your budget.
Do I Need Trailer Insurance Liability Coverage?
Accidents involving vehicles that are towing trailers are not uncommon and these large and often heavy trailers can cause serious property damage and injuries when they collide with other vehicles or objects. Mistaken turns, collisions with objects while backing up, and clipped cars while changing lanes are some common trailer mishaps that lead to liability concerns for the driver.
Runaway trailers are another hazard. If a trailer breaks free from your vehicle while you are towing it, it can roll out of control. In most cases, the trailers do not stop until they have hit another vehicle or object. It is a good idea to purchase a breakaway kit to help prevent such an incident. These will stop the trailer if it becomes disengaged. However, a stopped trailer on the roadway can still be very dangerous to other vehicles and drivers.
What Is Trailer Liability Insurance?
Trailer liability insurance can provide coverage for injuries and damages caused by various types of trailers including boat trailers, horse trailers, fifth wheel RVs and utility trailers. It can also cover legal fees in the event that someone takes you to court. If you have a trailer for commercial use, commercial trailer liability coverage can protect your business in the event of a lawsuit.
Commercial and Personal Policy Differences
On a Commercial or Business Auto policy, trailers must be listed to be covered for Liability coverage and Comp and Collision.
For Personal Auto Policies the Liability extension of the coverage includes the trailer or towing vehicle. Comp and Collision are not included and must be added.
To fully understand that you are getting the most comprehensive coverage based on your needs, contact your insurance agent, whether you are purchasing a trailer or borrowing or renting one. Discuss and understand all the details with your auto insurance agent before you take to the road.