As summer approaches, many Americans start planning for camping excursions in the months ahead in motorhomes, fifth wheels, travel trailers and pop-up camper trailers.
And while motorhomes are vehicles that require their own insurance policy since you are driving them like a car, what about the aforementioned trailers? Since you don’t actually drive them and instead attach them to the back of your vehicle, states don’t require that you carry insurance on them.
But just because insurance isn’t required for trailers, doesn’t mean it’s not a good idea.
If you are planning on hitting the road this summer in a fifth wheel, travel trailer or pop-up camper trailer, here’s what you need to know.
First let’s look at the three main types of trailers:
Fifth wheel trailers — These are the largest types of trailers and are similar in size to a class A motorhome. They must be towed by a large pickup truck capable of handling their weight, using a special tow point in the bed of the truck known as a fifth-wheel coupling.
Travel trailers — These are smaller in size and are towed behind a vehicle, typically with a ball hitch. You can use a smaller vehicle to tow one, like an SUV or light truck.
Pop-up campers — These are a type of travel trailer but a smaller variety. These share the same bumper pull hitch and are collapsible to a certain degree. Some models “pop up” part of the interior while others can completely fold down the living space, so it looks more like you’re towing a box on wheels.
Your auto insurance
If you have comprehensive coverage on your vehicle, it will not cover your fifth wheel or trailer if it is damaged or stolen.
However, if your vehicle is towing the unit and the trailer damages a third party’s property or injures a third party, your auto liability insurance would cover the damage you caused.
If you’re at fault for an accident that damages your pop-up camper, however, your towing vehicle’s coverage won’t pay to repair it.
Insurance option
If you have financed your fifth wheel or trailer, the lender will require that you carry insurance to cover it if it’s damaged or stolen until the loan is paid off.
Even if it’s not required, it’s a good policy to purchase RV insurance or travel trailer insurance to protect your investment. While liability coverage is included in your towing vehicle’s auto policy if you cause an accident while towing your trailer, specialized RV insurance provides more protection for the trailer itself.
Here’s what a policy may include:
- Injury liability: This pays for injury caused to a third-party individual. It may cover illness, disease, pain, emotional distress, income loss and death expenses.
- Damage liability: This pays for loss or damage to third-party property. The amount of property damage is assessed based on the reduction in its original value.
- Collision coverage:This pays for damage resulting from impact with another vehicle. It may also cover damage to an object outside the car. This insurance coverage is usually subject to a deductible.
- Comprehensive coverage: This coverage pays for direct and accidental damage incurred by the insured’s vehicle, apart from a collision. It is also usually subject to a deductible and covers losses that aren’t explicitly excluded in the policy.
- Total loss replacement: This replaces lost vehicles with the latest model of the same vehicle type or a comparable model.
- Agreed value: This applies to total losses, where the policy covers the original amount spent on the fifth wheel or its appraised value.
- Emergency lodging expenses:This covers lodging expenses if the fifth wheel is damaged or lost to a covered risk more than 50 miles from the policyholder’s home.
- Campsite or vacation liability: This covers liability when the vehicle is parked or used as a residence.
Many policies will reduce the premium if you store your trailer for part of the year and suspend collision-related coverages during that period.
Cost
The price of insurance will depend on numerous factors, like your age, location, driving history, coverage options and the year, make and model of your trailer.
If you are in the market for a fifth wheel, travel trailer or pop-up camper, give us a call ahead of time so we can help you secure proper coverage to protect your new investment that is bound to provide you with years of fun.