Norton Seal Truck pulling a boat on a trailer

On The Road

Does Car Insurance Cover Trailers?

If you own a trailer to haul things like your boat, Jet Ski or other recreational vehicles, you might wonder if your car insurance extends coverage to it. Let’s take a look at what qualifies your trailer for coverage under your car insurance policy with American Family Insurance.

Trailer Eligibility

With American Family Insurance, your trailer is considered eligible for liability coverage under your car insurance policy if it is a personal trailer that is designed to be towed by a motor vehicle, and if it’s owned by the named insured on the towing car’s auto policy, or it’s attached to the towing vehicle.

Here are some common questions you might ask:

Does the trailer need to be listed on my policy? Your trailer only needs to be listed on your policy if you want comprehensive and collision coverage, which can be purchased separately.

Is the trailer covered if it is registered in someone else’s name? The trailer is covered if it is attached to a vehicle you own that is insured by American Family Insurance.

What Trailers Are Not Considered Eligible?

A trailer is a vehicle designed to be towed by a motor vehicle. However, the following are not considered eligible trailers by American Family Insurance:

  • A farm wagon used to carry people
  • A trailer or mechanical device towed by a motor vehicle and used in business or occupation other than farming or ranching.
  • A trailer or car top carrier designed to be attached to the roof of a car.
  • A vehicle, other than a trailer, being towed.

Does a trailer hauling a boat only cover the trailer? No, while on land, liability coverage from the towing vehicle extends to damage caused by the boat and the trailer. The boat policy excludes coverage while it’s being towed.

Are recreational trailers covered? Recreational trailers are covered for liability, but you must purchase comprehensive and collision coverage separately.

Are snowmobile trailers covered? Snowmobile trailers are covered for liability, but you must purchase comprehensive and collision coverage separately.

Are trailers required to have comprehensive and collision coverage? It is optional to have these coverages, but take a look at all the ways these comprehensive and collision insurance can help protect your trailer.

Some Common Eligible Trailers Include:

Watercraft trailer. You can insure your watercraft trailer specifically under a watercraft policy with your boat, but if you are using your boat trailer for purposes other than hauling your watercraft, the watercraft policy will not cover the trailer for comprehensive or collision coverage. A ‘dual purpose’ trailer should be written on the car policy to be sure you have comprehensive and collision coverage.

Recreational trailers. These are frequently used as utility trailers in addition to being used to transport specific recreational vehicle.

Still have more questions? Your American Family Insurance agent can help clear up any confusion and give you more specifics on the type of coverage your trailer is eligible for. In the meantime, check out our boat, ATV, snowmobile and car coverages to ensure all the fun stuff you worked so hard for is properly protected.

Keep reading for tips on towing a trailer.

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Related Topics: On The Road , Car Insurance