As insurance companies love to remind you: Accidents happen, especially when you're not expecting them. It's easy to forget about trailer towing insurance, but you may live to regret not looking into it.
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Many auto insurance policies also cover liability on your towed vehicle if an accident happens on the road. So, if you're towing a trailer and jackknife, your trailer would be covered under the auto policy of the vehicle you're driving -- you wouldn't need separate towing insurance for the trailer. But not all auto policies cover this. Some policies only partially cover trailers. To be sure, check your policy's fine print. If you have questions about your policy, call your insurance company.
If it turns out that certain aspects aren't covered, like physical damage, you may want to buy an insurance policy that will cover all of these things. Companies that specialize in recreational vehicle (RV) insurance often provide insurance for trailers as well. For instance, damage due to things like fire and flooding that may occur while the trailer is in storage can be covered by trailer insurance. A policy may even cover the cost of staying in a hotel if damage to your trailer makes it unlivable. If something happens to your trailer while it's on your property, the costs may be covered in your homeowner's insurance, but you should check this as well.
The cost of insurance for a policy that covers physical damage to your trailer can vary. It depends on the value of the trailer. It may also depend on your driving record, your age and gender, or even the area where you live.
Special RV Insurance
Some advise getting a separate RV insurance policy from a company that specializes in it, rather than adding it on to your auto policy. RV insurance, like some of the travel trailer insurance policies, will pay for a hotel stay if your RV breaks down on the road. RV insurance isn't very expensive -- motor home drivers aren't known to be reckless or irresponsible [source: Baker].
When you get insurance on a trailer, see if your insurance company has its own safety standards. Your policy may call for particulars that might go beyond the state requirements listed on the previous page. Still uneasy about towing? Look at the links on the next page for more on towing tips and safety hazards of towing.