Is Travel Trailer Insurance Necessary?
When considering new travel trailers for sale, many people forget to take insurance into consideration. Although it is not a requirement in any state for fiberglass travel trailers to carry insurance, they can be very expensive assets. It would be very foolhardy for anyone not to properly insure one, no matter what the value or the size. If the trailer is being purchased with any sort of financing, the finance company may require insurance. Even if it doesn’t and the trailer is a total loss, the finance company will still be owed the entire outstanding balance of the loan.
Some automobile policies will provide basic coverage for a trailer, for others it needs to be specifically added on. Some auto policies specifically exclude trailers. Before looking into what additional coverage may or may not be needed or wanted, it is important to check with the existing insurance company to find out exactly what the policy covers.
Once the limits of the existing policy are known, consideration can be given to what additional coverage is appropriate. For a small, secondhand pop-up trailer which costs a few hundred dollars, it may not be worthwhile to purchase additional insurance. However, some fiberglass travel trailers can cost tens of thousands of dollars, often more than the value of the vehicle towing it. For these, a fully comprehensive trailer policy is the smartest option. As with any insurance, you hope you never need it, but it is essential to have in place if you ever do.
There are several different types of travel trailer insurance offered which depend on the usage. There are policies which cover extensive road use, for example, and others where the trailer is occupied full-time for all or part of the year. The only situation generally not covered by a specialist trailer insurance policy is where the trailer is parked full-time.
After determining the appropriate type of policy for the trailer’s intended usage, the items which can covered are similar to those in an automotive insurance policy. These include:
– Total loss replacement
– Liability coverage for personal injuries
– Collision coverage
– Comprehensive coverage for loss from fire, theft or severe weather
– Coverage for personal possessions
– Roadside assistance
– Emergency expenses
– Parked trailer coverage
The last item is especially important to consider. Parked trailer coverage provides insurance while your trailer is parked in an RV site or campground and everyone is away, hiking or biking for example.
This is not intended to be a comprehensive list of all of the reasons that insurance should be considered when looking at new travel trailers for sale. It is also not intended to be a comprehensive list of all of the reasons to have trailer insurance or the risks to be insured. What it is intended to do is to provoke some thought about how best to get some peace of mind while enjoying a new travel trailer.