Do you need Trailer or RV Insurance?

Basic Towing Liability is Usually Covered under Auto Insurance Policies

For some trailer owners, trailer or RV insurance is a rip-off.  Under almost all auto insurance policies, towing insurance coverage is included.  Most but not all liability exposure for trailers occurs when a trailer is in tow.  In other words, you don't usually need to buy towing insurance.  The auto insurance or motor home insurance carried on the towing vehicle provides towing insurance.

Nonetheless, there are numerous instances in which separate trailer or RV insurance is a prudent investment.  Theft, vandalism, fire, storm damage flooding etcetera is probably not  covered under your auto insurance policy. It may be covered under your homeowner’s policy, particularly if you store the trailer at your residence. But be safe, and look at your insurance policy.

Is your trailer expensive to replace? How about its contents? Do you store or have installed expensive equipment or other items in the trailer? Your auto and homeowner's insurance policies probably do not cover property damage or loss to these items.

Purchasing Trailer Insurance

There are no cargo trailer insurance  specialists.  You must purchase trailer insurance from an RV  insurance company or an automobile insurance company. For expensive trailers and RVs—or less expensive trailers that are used to store valuable equipment or other property, separate trailer or RV insurance coverage may be appropriate … (read more)

Review  the following insurance coverages and see if you think you need them:

Liability Coverage. Towing insurance liability is usually covered under your auto insurance. A separate towing insurance policy is usually not necessary for covering towing liability.

RV or Trailer Property Contents Insurance.

Do you need  Trailer or RV Insurance replacing appliances, electronics, generators, and other equipment at replacement value? Otherwise, you will be paid depreciated value.

Roadside Assistance. This may not seem necessary until you are faced with a large trailer disabled on the side of the road. 

Contents. Cargo trailers carry expensive cargo. Make sure your contents coverage is high enough to cover expensive cargo as contents.

Non Towing Accidents: Protection against theft, vandalism, windstorm, hail, lightening, fire and explosion. Your auto insurance and homeowners insurance will probably not cover these occurrences.

Towing Insurance for breakdown. If a trailer or big RV trailer becomes disabled on the side of the road—either because the tow vehicle or the trailer becomes inoperable, the expenses of finding a tow company who will tow a large trailer could be much more than a normal automobile tow.

Personal Effects Coverage.  Are your personal belongings covered? Trailer or RV Insurance policies cover theft from your trailer. If you pack your belongings in the trailer and they are stolen, they will probably not be covered under your auto insurance policy. Think about that the next time you put the luggage in the trailer and not in the trunk!

Total Loss Replacement Coverage. This optional coverage for some Trailer and RV insurance policies pays to replace your RV or trailer if it is damaged beyond repair. You receive another unit of the same kind and quality. No depreciation!

Outstanding Loan Balance Coverage. Under most trailer and RV insurance policies,  an RV or expensive trailer is protected for its actual cash value, a claim settlement for a total loss sometimes isn't enough to pay off an outstanding loan. This is an option available under some RV insurance policies.

Vacation Liability. Premises liability coverage added to your trailer or RV insurance, which protects against accidents that may happen on site while your unit is parked at a campsite or RV park.

Full-timers Coverage. RV insurance optional coverage provides liability protection, similar to a homeowner's policy. It's a good thing to have if you live in your RV or trailer all the time.

Mexico Coverage. Going across the border? Add this optional coverage to your trailer or RV insurance policy for physical damage protection while in Mexico.

Tow Dolly Coverage. Full coverage RV insurance policies often include tow dolly coverage.