Last Updated April 2026
- A separate liability policy for your trailer typically isn’t needed because the liability coverage on the towing vehicle covers the trailer when it’s attached.
- To help cover damage to the trailer itself, you may need separate trailer insurance or an endorsement added to the towing vehicle’s policy.
- Travel trailers and camper trailers — the RVs towed by other vehicles — are usually insured under specialized RV policies.
- If you’re using a trailer for business, you’ll likely need business or commercial coverage.
- Rules and registration requirements for trailers vary by state and trailer type.
Short answer: Your trailer typically doesn’t need its own liability insurance because the towing vehicle’s auto policy may apply, as long as the trailer is attached. However, if the trailer or what it’s carrying is damaged or stolen, you would need separate insurance — either a trailer policy or endorsements on your collision and comprehensive coverage — to help pay for repairs or replacement.
What is trailer insurance?
Trailer insurance is coverage for a towable, non‑motorized vehicle that doesn’t have an engine and relies on a car, truck or SUV for movement. Trailer insurance can help protect owners from financial loss if the trailer is damaged, stolen or involved in an accident.
Common types of trailers people insure
Utility trailers
Open flatbed trailers with low sides, commonly used for hauling household items, landscaping materials, lawn equipment or small vehicles like ATVs.
Cargo trailers
Fully enclosed with solid walls and lockable doors, used to transport tools, equipment, motorcycles or other goods while protecting them from weather and theft.
Boat trailers
Specially designed to carry boats, often with bunks or rollers that support the hull and a winch system to help load and launch the boat.
Travel trailers or camper trailers
Towable recreational vehicles that provide living space — such as beds, kitchens and sometimes bathrooms — for camping and road trips.
Types of coverage available for trailers
Liability coverage
Helps cover injuries or property damage if your trailer causes an accident or injury while you’re towing it. Even though auto insurance may cover liability while you’re towing a trailer, separate trailer liability coverage can provide protection when the trailer is parked, used as living space or used for business.
Physical damage coverage
If your trailer is stolen or damaged in a crash or covered events like a storm or fire, this helps pay to repair or replace it. It may be separate coverage or an endorsement on your collision and comprehensive auto coverage.
Cargo or personal property coverage
May help cover costs if tools, equipment or personal belongings carried inside the trailer are damaged, destroyed or stolen. For example, it might apply if a contractor’s tools are stolen from an enclosed cargo trailer, or if camping gear is damaged during an accident. Coverage may come from homeowners, commercial property or specialized policies, depending on what you’re carrying and for what purpose.
RV coverage
Travel trailers may qualify for specialized RV insurance coverage that can include belongings and campsite liability. Off-season RV insurance can cover a travel trailer for fire, theft, vandalism and acts of nature that happen when it’s stored and you’re not using it.
Do you need insurance on your trailer?
If your trailer is valuable, used frequently or for business, stored in higher-risk areas or carries expensive equipment or cargo, you may want to consider separate trailer insurance that covers physical damage or losses from an accident, weather or theft. State requirements and lender rules (if you have a loan) can also affect whether coverage is needed.
Six situations when trailer insurance may be needed — or a good idea
Your trailer is valuable
Higher-value trailers may benefit from coverage that helps pay for repairs or replacement. For example, replacing a basic utility trailer because of a crash may cost a few hundred dollars, while a large, enclosed cargo trailer or travel trailer could cost thousands.
You store equipment or belongings inside
Many trailers carry valuable items such as contractor tools, motorcycles, ATVs or camping gear. Insurance may help cover costs if those items are stolen or damaged.
You use your trailer for business
Car insurance typically excludes business uses, so a trailer used for your business would need commercial insurance. A contractor hauling tools, a landscaper transporting equipment or a vendor using a concession trailer may need different coverage than someone using a trailer occasionally for personal projects.
You use the trailer frequently
Trailers used regularly — whether for work, home projects or weekend recreation — may face a higher risk of accidents or damage.
Your trailer is financed or leased
Lenders and leasing companies often require insurance to help protect their financial interest in your trailer, especially for higher-value trailers like campers or enclosed trailers.
The trailer is stored outdoors
Trailers parked outside — in a driveway, yard or job site — may be more exposed to theft, vandalism or weather-related damage like storms or falling debris.
Trailer insurance requirements by state
In most states, a trailer does not need its own liability insurance when it is attached to an insured vehicle. However, states may have requirements related to trailer registration, weight limits or commercial use.
To understand the trailer insurance and registration requirements where you live, check your state DMV website, state insurance department or talk with an insurance agent.
Does auto insurance cover trailers?
If a trailer is attached to your vehicle, the vehicle’s liability coverage typically covers the trailer too. This means the towing vehicle’s personal auto policy may help pay for injuries or property damage caused by the trailer during an accident.
Limitations of car insurance for trailers
The towing vehicle’s auto insurance typically does not automatically cover damage to the trailer itself. Separate coverage may be needed to help pay for repairs if damage is caused by a theft, fire, storm or accident.
How insurance coverage works for trailers
Different types of trailers can be covered in different ways. This chart shows common uses and examples of how liability, collision and comprehensive coverage might apply.
| Trailer type | Common uses | Liability | Collision | Comprehensive |
|---|---|---|---|---|
| Utility trailer | Hauling tools, yard equipment, small machinery | Trailer swings wide and damages another vehicle while turning | Trailer is damaged by backing into a pole | Trailer is stolen from your driveway or damaged by hail |
| Enclosed cargo trailer | Transporting tools, motorcycles, ATVs or equipment | Trailer detaches and runs into another driver’s car | Trailer is damaged in a crash while being towed | Tools inside are stolen in a break-in or trailer is damaged by fire |
| Boat trailer | Transporting boats to and from the water | Trailer crunches another vehicle’s door in a traffic accident | Trailer frame is bent after a collision on the highway | Trailer is stolen or damaged by flooding or vandalism at a marina |
| Travel trailer | Camping, recreation, seasonal travel | Trailer is backed into a fence and knocks it down while being towed | Trailer is bashed in a rear-ender while on the road | Trailer is stolen or suffers storm or fire damage while parked at a campsite or storage lot |
| Commercial equipment trailer | Transporting business equipment or machinery | Trailer causes injury or property damage during business operations | Trailer is damaged in a work-related traffic accident | Equipment trailer is stolen from a job site or damaged by severe weather |
Utility trailer
- Common uses
Hauling tools, yard equipment, small machinery - Liability
Trailer swings wide and damages another vehicle while turning - Collision
Trailer is damaged by backing into a pole - Comprehensive
Trailer is stolen from your driveway or damaged by hail
Enclosed cargo trailer
- Common uses
Transporting tools, motorcycles, ATVs or equipment - Liability
Trailer detaches and runs into another driver's car - Collision
Trailer is damaged in a crash while being towed - Comprehensive
Tools inside are stolen in a break-in or trailer is damaged by fire
Boat trailer
- Common uses
Transporting boats to and from the water - Liability
Trailer crunches another vehicle's door in a traffic accident - Collision
Trailer frame is bent after a collision on the highway - Comprehensive
Trailer is stolen or damaged by flooding or vandalism at a marina
Travel trailer
- Common uses
Camping, recreation, seasonal travel - Liability
Trailer is backed into a fence and knocks it down while being towed - Collision
Trailer is bashed in a rear-ender while on the road - Comprehensive
Trailer is stolen or suffers storm or fire damage while parked at a campsite or storage lot
Commercial equipment trailer
- Common uses
Transporting business equipment or machinery - Liability
Trailer causes injury or property damage during business operations - Collision
Trailer is damaged in a work-related traffic accident - Comprehensive
Equipment trailer is stolen from a job site or damaged by severe weather
FAQs
Do trailers need insurance if they’re not motorized?
Not always. Liability coverage may come from the towing vehicle’s auto insurance policy when the trailer is attached. But liability does not cover damage to the trailer itself or its contents, and business uses often are excluded from coverage under a personal auto policy.
Do you have to insure a travel trailer?
Travel trailers are often insured under specialized RV policies, especially if they are valuable or financed. Typically, they don’t require liability coverage because damage or injuries caused by the trailer would be covered under the towing vehicle’s insurance. But if your travel trailer is leased or has a loan, your lender or leasing agent may require you to insure it. RV parks and campgrounds sometimes require insurance.
Does car insurance cover damage to a trailer?
No. Car insurance typically only includes liability coverage for a trailer, which helps pay for injuries or property damage the trailer causes to others — not damage to your own trailer. If the trailer is stolen, vandalized or damaged in an accident, you would need separate collision or comprehensive coverage to help pay for repairs or a replacement.
Do trailers need insurance in every state?
Not necessarily. Most states do not require separate trailer liability insurance when the trailer is attached to an insured vehicle. But states may have registration, load limit and other regulations governing trailer use.
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services, or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.
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