One of Canada's favourite summer past times is hooking up the trailer and hitting the road in pursuit of adventure. Whether it's the mountains, the lake, or anything in between–there's nothing more freeing than a road trip with "home" tagging along for the ride.
Though thrill-seeking adventure can be done on a whim, it's important to make sure you're prepared in advance for your summer expeditions. The best way to do so is making sure your insurance is up to date, and covers what it needs to cover. When doing so, it's normal to ask "is my trailer covered under my current policy?" And "what happens if my trailer is wrecked or breaks down?"
When trailers are covered on a policy
In most cases, the third-party liability portion of your auto coverage will extend to your trailer... when it’s being towed on your vehicle. When getting ready for each and every road trip, make sure your trailer is hitched properly, and all indicator lights and brake lights are working properly, so your vehicle and trailer are safe to hit the road.
However, when your trailer is detached, it's no longer included in this coverage.
- If someone sideswipes your trailer while it’s resting on the side of the road and detached from your vehicle, then it wouldn’t be covered.
- If your detached trailer is damaged or destroyed while sitting in someone else’s driveway, it likely wouldn’t be covered.
When detached, liability insurance is often available as an add-on to a policy, and helps protect you in case you’re deemed responsible for damages to another person or their property. Every insurer is different, so it pays to speak with your broker about how your car insurance works with trailer insurance. You may need an endorsement from your insurer to ensure it’s properly covered at all times and locations.
Does my trailer need its own policy?
It's possible your trailer could be covered as part of your property while on your premises—but trailers are expensive, and contents coverage can max out during a claim. You may need to consider increasing your contents coverage limit (as long as you’re sure the trailer is covered that way) to make sure you can account for necessary replacement costs during a claim.
Most insurance companies recommend purchasing a separate RV & trailer insurance policy, especially for higher-value RVs, to make sure you have the best protection. If you're wondering what the best option is for you and your trailer, Armour is here to help!