If you own a utility trailer, it’s important to know that the majority of standard auto insurance policies will not cover damage to a trailer should an accident occur, unless you have an endorsement added to your policy.
To learn more about when you need insurance for your utility trailer, keep reading.
Does standard auto insurance cover trailers?
Drivers should never assume that their standard auto insurance policies cover their utility trailers. The reality is that most basic car insurance policies do not cover damage to a utility trailer in the event of a collision, unless you have an endorsement added to your policy.
Your car insurance may provide partial protection under the third party liability coverage portion of your policy, but usually, this protection only applies if the utility trailer was hooked up to the tow vehicle at the time of the accident.
If it was damaged while parked in the driveway, your standard auto insurance policy would not compensate you for damages. Further, third party liability is the only portion of your policy that might extend to your utility trailer.
Other coverages, like collision coverage or comprehensive coverage, do not offer any protection for your utility trailer without an endorsement added. Therefore, if you regularly hook a utility trailer to the back of your vehicle or have one parked in your driveway, you should purchase separate insurance for it.
Is utility trailer insurance required by law?
Unlike car insurance in Canada, utility trailer insurance is not required by law. This is largely because utility trailers are not motorized. Rather, they are trailers towed by a motorized vehicle on the bed of the car. However, purchasing utility trailer insurance will ensure it is protected against a wide range of unforeseen circumstances, including theft, vandalism, collisions, fires, and more.
Many types of utility trailers can be insured, such as enclosed trailers, open-air trailers, flatbed trailers, and landscape trailers.
Why do I need utility trailer insurance?
Without a separate utility trailer insurance policy or an endorsement on your existing car insurance policy, your utility trailer will not be protected the moment it’s unhooked from the tow vehicle.
For example, if it is damaged or vandalized while parked in the driveway of your home, your auto insurance provider would not cover the cost of repairing or replacing it. But when you purchase trailer insurance, you can protect your investment from many risks.
What does utility trailer insurance cover?
One of the most important reasons to purchase utility trailer insurance is so that your trailer will be covered in the event of physical damage. Just like car insurance, you get to decide how much coverage and which types of coverage to include with your policy.
The following types of coverage can be included with your utility trailer policy:
Collision coverage
Collision coverage protects the policyholder if they get into an accident with another car or object on the road, regardless of which party is at fault for the accident. Under the collision coverage section of your trailer insurance policy, you can be reimbursed for the cost of repairing a damaged vehicle, such as a utility trailer.
Comprehensive coverage
Comprehensive coverage provides peace of mind to drivers of all vehicles because it offers such a wide range of protection. Specifically, comprehensive coverage protects against circumstances other than collisions. For example, if you include comprehensive coverage with your utility trailer policy, it may be protected against theft, vandalism, water damage, fire, and more.
Third party liability coverage
Although your standard auto insurance coverage, which legally must include third party liability coverage, will protect your utility trailer while hooked up to your tow vehicle on the road, it will not protect it when parked. Therefore, third party liability coverage should also be included with your utility trailer endorsement or policy.
Accidents happen, and if someone were to injure themselves using your trailer, they could file a claim against you. However, with third party liability coverage, you will be protected in the event a lawsuit is filed against you.
This type of coverage can help pay for medical expenses associated with bodily injuries or repairs of damaged property, as well as any applicable legal fees and settlements up to the coverage limit.
Contact BrokerLink for a free quote on your utility trailer insurance
Are you ready to protect your utility trailer by purchasing trailer insurance? BrokerLink can help. We are car insurance experts and will ensure you find the right policy for your needs. We offer a wide range of coverage options and can help you choose the best policy at the most competitive rate.
Contact us by phone or email and one of our insurance advisors will be happy to assist.! We can’t wait to hear from you.
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