Personal vs. Commercial Use
Enclosed cargo trailer insurance can be for both personal and commercial use. Essentially, an enclosed trailer is a flatbed trailer with a roof and sides to protect the items you want to haul from the outside elements. However, the objects may still need to be secured to the inside of the trailer while in transit. The main use for an enclosed cargo trailer is to transport cargo (which has no means of self-propulsion) from one place to another. You may own one to haul your heavy and oversized personal items. Or, you may have a towing business that requires you to own a specialized enclosed trailer.
If your uses are purely personal, then you are not required to own any insurance, but it’s always a good idea to have some protection just in case.
For commercial uses, there are laws in place requiring some coverage. You will also need to register your enclosed cargo trailer with the state department of motor vehicles. The type and amount of coverage can vary from state to state, so contacting your local independent insurance agent will help you to get the information that you need.
Auto Insurance Coverage
Your enclosed cargo trailer is protected under your auto insurance policy, but only while it is attached to your vehicle and in the process of being towed from one point to another. If the trailer was not attached properly to your vehicle and accidentally becomes unhitched while in transit, then the general liability coverage of your auto policy will probably extend to your trailer. Certain laws dictate high liability limits for dangerous or toxic cargo.
This coverage is quite limited, however, as the collision and comprehensive aspects of the policy will not pay to replace your trailer if it is damaged in an accident. You will need to purchase additional coverage to protect your assets.
Other Coverage Options
Comprehensive: This type of insurance helps to cover the costs of damages to your trailer that are not the result of a collision. Incidents may include fire, inclement weather, and theft. It would also cover other scenarios that were beyond your control, such as an animal in the roadway, falling rocks or debris, and flooding.
Collision: This type of insurance helps to pay for any damage to the other party’s vehicle caused during a collision when you are at fault. This also includes damages to stationary objects such as buildings. Collision coverage can be purchased as an extension on your comprehensive policy.
Trailer liability: If someone is injured as a result of a collision with your enclosed cargo trailer, liability insurance will help to pay for their medical bills and any other damages caused. It would also help cover your legal fees in the event of a lawsuit.
Cargo Liability: This type of insurance protects the products you carry on your enclosed cargo trailer. It will help to cover the costs to repair or replace the objects if they are damaged. The policy may also pay for the removal of debris from the roadway or waterway caused by an accident involving your enclosed cargo trailer. To protect cargo for some perils you will need a cargo floater.
The costs to insure your enclosed cargo trailer vary widely. There are several different factors that affect the overall cost, including:
- The year, make, and model of the trailer
- The size of the trailer
- Whether you plan to use the trailer for commercial or personal use
- Whether or not you plan to use the trailer in more than one state
- The objects that you plan to haul
Speak to an Agent
The best way to find out more on enclosed cargo trailer insurance is to speak to your local, independent insurance agent. He or she has the knowledge and experience necessary to recommend the right coverage for you.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
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