Many customers have asked us what, if any, special coverage is needed on their personal auto policy to cover a trailer they own or use with their personal vehicles. It’s an excellent question, and the answer depends on what kind of trailer you own or use, what it is used for, and how much it is worth.
Most personal auto insurance policies automatically provide liability coverage on a trailer when the trailer is owned by the person or persons named on the “declarations” page of the policy. In addition, liability coverage is provided when any trailer – owned or not – is used by you or a family member who resides in your household. However, auto insurance policies sold by some insurance companies may not automatically provide coverage on all trailers, so ask your agent to be sure your policy does. And if a trailer is owned by a family member rather than the person or persons named on the “declarations” page, the policy does NOT provide liability coverage unless the trailer is specifically listed on the policy along with the vehicles.
Your policy contains some coverage exclusions regarding the use of a trailer. Two exclusions preclude coverage for a trailer while it is being used to carry property for a fee or other compensation or while it rented or leased to another. Another exclusion precludes coverage if the trailer is being used for business purposes, unless it is being towed by a private passenger auto, pickup or van. In one policy sold by some companies, the pickup or van must be one that is listed for coverage on your policy.
Coverage for damage to the trailer is NOT provided automatically on the typical policy. If your trailer is worth more than you can afford to lose should it be damaged in an accident or weather-related incident, you need to ask your agent to add damage coverage to your policy. Contact Anco’s personal lines representatives if you have additional questions regarding your personal auto policy.
This article was prepared and made available to your agent by the Independent Insurance Agents of Texas, which is solely responsible for its content. Please read your insurance policy. If there is any conflict between the information in this article and the actual terms and conditions of your policy, the terms and conditions of your policy will apply. The Independent Insurance Agents of Texas is a non-profit association of more than 1,500 insurance agencies in Texas, dedicated to helping its members succeed, in part by providing technical resources that explain insurance policies sold to their customers.
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