When preparing for an adventure, knowing whether your cargo trailer is adequately insured is essential. Many RV owners wonder, “Does a cargo trailer need insurance?”
At Capital Recreation, we do more than RV financing in Canada. We understand the nuances and requirements of insuring your trailer and are here to guide you through them.
Does Auto Insurance Cover Your Cargo Trailer?
The simple answer to this common question is no.
When you tow your cargo trailer with your vehicle, your auto insurance policy typically does not cover damages if your trailer is stolen, vandalized, or involved in an accident. You’ll need a separate policy specifically for your cargo trailer to cover such incidents. This coverage is crucial, especially considering the potential high costs of replacing or repairing your trailer.
Why You Need Cargo Trailer Insurance
Does a cargo trailer need insurance? In short, yes!
Cargo trailer insurance is not just an additional expense; it’s a safeguard for your valuable equipment and the goods you transport. Whether hauling essentials for your next RV trip in Canada or carrying tools for a professional project, insurance protects your trailer and its contents.
How Much Coverage You Need
Determining the appropriate coverage for your cargo trailer depends on the trailer’s value, its intended use, and local regulations. A more expensive trailer generally needs more comprehensive insurance to cover potential losses.
Additionally, if you frequently use the trailer to transport valuable items, you may require higher coverage limits because of the increased risk. It’s also important to be aware of the insurance requirements that may vary by region, depending on the type and weight of your trailer.
How Much It Costs
The cost of insuring a cargo trailer depends on several factors, including the type of coverage you select, the value and size of the trailer, and how often you use it. Opting for a comprehensive policy generally results in higher premiums.
As noted above, insuring a larger or more valuable trailer can be more expensive. The frequency and nature of your trailer’s use also play significant roles in determining your insurance rates.
What It Covers
Cargo trailer insurance offers various protections to meet the needs of trailer owners. This type of insurance typically covers physical damage, ensuring you can repair or replace your trailer and its contents if they are damaged.
It also protects against theft and vandalism, providing coverage for losses resulting from criminal activities. Moreover, the insurance covers accident-related damages, which include any damage caused by or to your trailer during an accident.
Find Your Next Adventure With Capital Recreation
Does a cargo trailer need insurance? Having cargo trailer insurance is critical for safeguarding your investment and ensuring you are fully prepared for any situation. At Capital Recreation, we offer comprehensive solutions tailored to your needs, whether you’re exploring different RV types, checking out travel trailer must have accessories, or securing the right insurance.
Call us at (833) 758-1244 to discuss how we can protect your cargo trailer throughout Canada, making your next journey worry-free.