Do Trailers Need Insurance? Yes, They Do. Here Is The Best Way To Get Started

TLTR: This article answers questions about trailers. Questions like do trailers need insurance and what are the various types of coverages available. The article also showcases real-life examples where trailer insurance can be extremely useful! 

Do trailers need insurance? Yes, they do! Let us tell you why.

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Basics Of A Trailer

A trailer is essentially an unpowered vehicle that is towed by another vehicle. There are several categories of trailers. Some of which are used commercially while others are perfect for personal usage.

Regardless of how you use a trailer, if you own one, you probably have asked yourself this: “Do trailers need insurance?”. Since you are on our site, let us tell you, yes, trailers do need insurance. And here are some statistics:

According to the Yellow Pages, depending on the personal usage category, a new trailer can cost you anywhere between $200 to $15,000. So, if you don’t insure your trailer, you will have to bear the financial burnt on your own.

Similarly, if you are looking to buy a commercial truck with a trailer then according to Advanton, the prices for even a semi-truck can be between $75,000 to $180,000. If you are a commercial trailer owner then you probably have invested in commercial truck insurance. While the coverage is comprehensive enough, we do recommend you invest in commercial trailer insurance. 

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Different Types Of Trailers: Why Do These Trailers Need Insurance And Which Policies To Use?

There are several categories of trailers that are available today. A quick online search and you will have hundreds of options. Each trailer is unique and requires a separate kind of insurance policy.

Here is a list of the most popular types of trailers around and some policies you can get:

Flatbed Trailers

Businesses choose flatbed trailers because of their flexibility. Their flexibility means that they can transport materials such as boxes, steel beams, and liquid containers. They’re convenient to load and offload because there is no box covering the material. Instead, one should use a tarp or other covers on the flat surface of the trailer bed.

You can customize these to fit different materials. Also, there is no limit on what you can load or unload with them. According to Chrobinson, flatbeds can carry goods as heavy as 46,000 pounds at one go.

While carrying such weight, it’s quite easy for the vehicle to get into various accidents. For example, a truck with a flatbed trailer that is carrying heavy sewage pipe on a slippery road meets an accident. In this hypothetical scenario, the accident can be fatal as it will make the driver lose control of the vehicle and third-party injuries can also arise.

Flatbeds are generally classified as utility trailers. For these trailers, you need coverages such as:

  • Commercial Umbrella Insurance
  • Commercial Auto Insurance
  • Tow Truck Insurance
  • Commercial General Liability Insurance (CGLI)

The cost to insure a flatbed trailer will be between $600 to $1,000 a year.

Refrigerated Trailers

Refrigerated trailers are also another type under the commercial trailer category. A refrigerated trailer is a type of mobile storage unit that uses the power generated by its own engine to cool whatever product it’s carrying. They are more specialized than flatbed and enclosed models.

Refrigerated trailers are great for businesses that need to keep products under a certain temperature. This trailer is highly used by the pharmaceutical as well as the food industry.

Reefer trailers is another name for refrigerated trailers. According to an article on Freightwaves, reefer trailer requires special handling. Since the goods carried by such trailers are time-sensitive, appropriate coverage is a must. The article suggests that reefer breakdown insurance is a must-have policy in this scenario.

Additionally, here are some policies you should consider if your business requires the usage of reefer trailers:

  • Product Liability Insurance
  • Food Insurance

Reefer trailer insurance will cost a minimum of $600.

Travel Trailers

These trailers are behind a road vehicle in order to provide a place to sleep while traveling. Travel trailers generally include a kitchen, a bed, and a washroom.

Some types of travel trailers are:

  • Caravan
  • Camper
  • RV
  • Tourer

You can get various types of comprehensive coverages for travel trailers. For example, if you own a camper or an RV, you can get either camper insurance or RV insurance.

You can also get your coverage customization as per your need. If you are someone who likes taking your trailer on long-distance journeys then you should consider investing in collision coverage. Here are some policies you should get:

  • Uninsured Motorist Insurance
  • Property Damage Liability
  • Bodily Injury Insurance

You can get travel trailer insurance for around $500 a year.

Food Trailers

A food trailer is essentially a commercial food truck. The trailer usually has cooking and food supplies. Even though the trailer is behind a powered vehicle, food trailers rarely change their locations.

Food trailers require food truck insurance. But additional to that here are some policies you can consider if you own a food trailer:

  • General Liability Insurance
  • Professional Liability Insurance
  • E&O Insurance

Food trailer insurance is quite cost-friendly. You can get it for as little as $29 a month.

Tractor Trailer

Tractor-trailers are one of the most commercially popular vehicles. It is a vehicle that has a semi-tractor and an attached trailer. The transport is unique and constitutes 18 wheels.

Tractor-trailers are popular for transporting goods from one place to another. Even heavy-duty products such as cars and bikes can be transported using a tractor-trailer. However, operating this vehicle comes with many risks.

One recent horror story involving a tractor-trailer comes from Texas. According to KWTX, a section of an interstate highway witnessed a chain-reaction wreck in September 2021. The accident was initiated when an 18-wheeler hit a parked vehicle along the highway. The accident caused a fuel leak which made many vehicles in the area go up in flames.

To ensure that you have financial protection from the liabilities that come from owning a tractor-trailer, you should consider the following policies:  

  • Collision Coverage
  • Property Damage Insurance
  • Bodily Injury Liability
  • Uninsured Motorist Coverage
  • Commercial General Liability Coverage

You can get tractor-trailer insurance for around $2,000 a year.

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What Are Some Inclusions Under Trailer Insurance

There are many different types of insurance that you will need for your trailer. You can think about it in three categories: liability, collision, and comprehensive coverage. The type of trailer you have determines what kind of insurance coverage you need.

With liability coverage, any damages or injuries you cause to other people while driving is covered. For example, if your car hits someone else’s vehicle then there wouldn’t be any problems with getting reimbursed.

Collision covers damage from accidents which means that, unlike liability, every person who owns a vehicle needs some sort of protection like this. Otherwise, they risk losing money due to an accident happening to them unexpectedly.

Lastly, a comprehensive policy takes care of situations like storms because your car isn’t driving itself-it’s being towed by something else.

If you use your trailer for business, you may require commercial coverage in order to protect the contents and owner of the vehicle. This type of insurance will cover trailers including auto haulers, side dump trailers, gooseneck or flatbeds aa well as other commercial vehicles.

A good insurance agent can help you find the right coverage for your trailer, considering how often it’s used and what sort of risks are involved. If anything is being hauled in the travel trailer, be sure to also have this covered.

How Can I Customize Trailer Insurance

When it comes to trailer insurance, there is no one size fits all situation. Even with the wide variety of policies available, you might want to customize your own coverage.

Here is how you can customize the coverage:

  • Check the terms of your current policy 
  • List down your coverage requirements 
  • Compare different insurance companies 
  • Talk to an insurance agent or an insurance company about getting all your needs met in one single policy 
  • Negotiate on prices 

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Conclusion

Driving down the open road with your entire living space behind you can be appealing. However, nagging what-ifs about danger on the road and potential damage from accidents may ruin this dream for many people.

Although auto liability insurance covers most of these costs associated with an accident involving a travel trailer, optional travel trailer insurance policies are available to cover important aspects of owning one such as damages caused by theft/vandalism or weather-related incidents (such as hail).

Once you’ve decided to protect your investment with travel trailer insurance, it can be hard to know where to start. There are a lot of different companies that offer various types and levels of coverage at varying costs.

Not all insurers out there provide the same services or hold themselves accountable in case something goes wrong; you will want your money going toward an organization you trust will come through for us when needed most. We assure you that we are exactly what you are looking for.

Get in touch with a local insurance agent today!

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Frequently Asked Questions (FAQs)

Do I Have To Pay For Full Coverage Even During The Months The Trailer Is Not In Use?

It depends on your insurance company. Some companies allow you to reduce the cost on premiums if you are not using your trailer for an extended period of time. For example, if you only use your travel trailer during summer, then you can talk to your agent about it. You may be able to negotiate a price.

Another alternative would be; instead of buying a policy that you renew annually, you can also opt for monthly coverage.

Can I Make Changes In A Travel Trailer Coverage That I Have Already Bought?

Yes, you can but your prices will vary. A premium rate is calculated based on the coverages you include in a policy. So, if you want to make changes then you are likely to pay more. For example, your current policy doesn’t cover insurance against animal attacks, if you want to get this covered, you will have to talk to your agent. Then your premium rate is likely to get re-evaluated.

Does Trailer Insurance Cover Mold?

Damage due to mold is a common problem among RV owners. So, the prevention of mold is very important for trailer owners. However, a standard trailer insurance policy does not cover mold. But, you can get it included in your coverage if you think it’s necessary.

How Do I File Claim For Trailer Insurance?

In an unfortunate event where you are required to file a claim for your trailer insurance, you will need to first inform your insurance provider.

If you are in a condition to take a picture of your trailer then it would be best to do so. You may need the pictures in the future as well. After you have alerted your insurance provider, take your trailer to a repair shop.

Once you get an estimate of the cost of the total repair, inform your insurance provider. Additionally, also provide them with details of any damage to customization or damage to valuable possessions that may have occurred in this unfortunate event.

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