Do You Need Insurance for a Trailer?

Ever borrowed or bought a trailer for camping, moving, or hauling gear and wondered: if something happens, am I covered? This guide explains when you need insurance for a trailer, what’s automatically included in your auto policy, and when separate coverage is worth considering.

Do You Legally Need Trailer Insurance?

In most provinces in Canada, trailers don’t require their own insurance policy just to be towed on public roads. As long as they are attached to an insured vehicle, liability coverage usually extends to them. 

However, there are exceptions. Some provinces and U.S. states require mandatory coverage for specific trailer types, like commercial trailers or heavier models. If you are using your trailer for business purposes like hauling equipment, transporting goods, or running a mobile service, different rules may apply. Because requirements vary, it’s essential to confirm the local laws where you live and travel. 

What Your Auto Insurance Covers

Most auto insurance policies provide limited protection for trailers while they are attached to the insured vehicle. Most of the time, your vehicle liability coverage will extend to cover injuries or damage caused to others in an accident.

So what’s not usually included? Damage to the trailer itself or the items you are transporting. For example, if you are towing a utility trailer and get into a collision, your auto policy may pay for the other driver’s injuries and vehicle repairs, but not the cost of repairing or replacing your trailer. Similarly, if your parked trailer is stolen or vandalized, the damage will not be covered under your standard auto policy.

In short, your car insurance covers liability, but not the trailer itself.

When to Consider Separate Trailer Insurance 

A standalone trailer insurance policy, or an endorsement added to your auto policy, can provide broader protection. Dedicated trailer insurance can include collision, theft, vandalism, fire, and even coverage for the contents inside. It makes sense in scenarios such as:

• High-value trailers. New or expensive models are often worth protecting with dedicated coverage.

• Travel trailers and RVs. Units with living spaces function more like second homes and need specialized coverage.

• Commercial use. If you are using the trailer for business, standard auto policies won’t provide enough protection.

• Valuable content. Tools, equipment, or personal belongings stored inside may not be covered without extra protection.

Tips for Choosing Trailer Insurance

When exploring trailer coverage, keep these tips in mind:

• Review existing policies first to see what’s already included under your auto or home insurance.

• Compare quotes from multiple insurance providers to balance cost with coverage.

• Think about trailer usage and how it can influence your risk profile.

• Consider add-ons like roadside assistance or replacement cost coverage for newer models.

Protect Your Trailer with the Right Coverage

Ready to learn about your options for trailer insurance? Contact Rowat Insurance to review your current policies and explore tailored trailer insurance solutions. Our advisors will help you find the right protection so you can tow, travel, or work with confidence.