Trailer expsoures
 

There are occasions while taking an application for a new quote on a boat that I run into the statement:

“It’s ok, I don’t need you to cover my trailer… my auto insurance covers that.” My response is always, "Did you actually call your auto carrier and ADD and PAY premium to put it on your policy?" Then to explain the following:


The statement made above by the new caller is only partially correct. There are two main exposures that accompany a boat trailer:

1. The liability you have while the trailer (and boat) is in tow.
2. The physical damage that may occur to your trailer at any given time, whether in tow or not.


So, let’s talk about what policy covers these exposures. Let’s start with the physical damage to your trailer. The best way to cover physical damage to your boat trailer is to add it to your BOAT POLICY. There are some auto insurance carriers that will allow you to add a trailer to your personal auto coverage but you have to actual endorse it to your policy and it will cost you an annual premium for liability and comp/coll. If you are under the assumption that your auto insurance poliyc will automatically cover your trailer/boat exposures while towing your boat/trailer you might what to double check your policies, it is likely not covered by your auto carrier (unless you’ve actually endorsed your trailer to your auto policy and paid a premium).


Now, as for the liability exposure that accompanies your trailer. Picture this: you are driving along on your way to the lake and ready for a great day on the water. While driving you experience that dreaded moment when your truck all of a sudden has a much “lighter load”. To your horror, you see in your rearview mirror your boat and trailer skating freely across the highway and headed into the ditch. To make circumstances worse, your boat/trailer hit another vehicle on its way to the ditch… So, what policy is going to cover you in this situation? The answer is: both.

•Your auto insurance policy will cover the liability (damage to other people and their property).
•Your boat policy will cover any physical damage to your boat.
•Your boat policy will cover any physical damage to the trailer.


Bottom line, make sure that if you are expecting your trailer to be covered in the event of physical damage to it, that you have it properly added to either your boat or auto insurance policy. If you have further questions about this topic, you can always send me an email or give me a call, I'm happy to help.

To add to this post.... Your boat itself is always covered by your marine policy. That is what the transit portion of your marine policy is for. The liability from the ACT of towing falls to your auto carrier.