We often get questions from our clients about the use of a trailer with their automobile. While it sounds simple, there is not just one answer. If you own a personal automobile and are using a trailer that is specifically designed to be towed by a private passenger vehicle, then in most cases, you do have liability coverage automatically extending from your auto policy for the trailer. If, however, the trailer has to be modified to fit your private passenger vehicle, then you probably do not have liability coverage.
For physical damage coverage to apply to the trailer, you have to add that coverage specifically. Some homeowner policies will extend a very small amount of coverage for trailers – but with limited perils, such as no theft coverage away from your home, and no windstorm or hail coverage if left outside.
Another consideration when dealing with trailers occurs when determining the vehicle that is to pull your trailer. As explained above, the personal auto policy extends coverage for specifically defined trailers, but an auto insured on a business auto policy does not automatically include this coverage.
In some cases, a trailer that is classified utility with a gross vehicle weight of 2,000 pounds or less is covered for liability. But, a problem occurs when you might want to use your business pickup truck to tow your camper or other trailer that exceeds the 2,000-pound limitation. When you want to tow a trailer with your commercial vehicle, the trailer will need to be specifically insured.
Give us a call if you are thinking about purchasing a trailer or if you own one that is not currently listed on your home or auto policy. We’ll make sure you have the coverage you need.