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Ins & Outs of Personal Trailer Insurance

Ins & Outs of Personal Trailer Insurance

There are few things more handy that a utility trailer. You purchase an inexpensive one, attach it to the ball hitch on your personal vehicle and then you’re free to haul things to your home, away from your home, and around the country. But where does insurance for that trailer come in? If it hits someone or something while you are towing it, where is the coverage? If the trailer itself is damaged, is there coverage for that? You have questions, we have answers. Liability May Be Automatic The ISO Personal Auto Policy (PP 00 01) describes covered autos to include “any ‘trailer’ you own”. As long as your personal trailer is attached to your personal vehicle, liability insurance coverage is typically extended to the trailer attached to or being towed by the insured vehicle. In fact, many of the exclusions applied to liability coverage for personal vehicles do not apply to trailers within the coverage form. Check your policy or speak with your broker to verify coverage, as some policies may exclude this coverage as a cost-saving measure. Physical Damage To Trailers Isn’t Covered While auto liability coverage does extend to an attached trailer, physical damage (also known as comprehensive and/or collision coverage) does not automatically extend to the trailer. In fact, the personal auto policy specifically excludes this coverage with the following wording: We will not pay for: 7. Loss to: a. A “trailer”, camper body or motor home which is not shown in the Declarations; or b. Facilities or equipment used with such “trailer”, camper body or motor home. In many cases this coverage may not...
Commercial Auto By The Numbers

Commercial Auto By The Numbers

Commercial auto insurance is different from other types of policies in many ways. There is one aspect that stands out: the use and application of a Covered Auto Symbol to each line of coverage within the policy. These Covered Auto Symbols may be different on each line, but the number itself means the same thing no matter which insurance company you choose. Your commercial auto insurance policy will include a Business Auto Coverage Form (more than likely some version of the CA0001) that includes a Description Of Covered Auto Designation Symbols which breaks down the definition of each numeric symbol that may be included on the policy. These symbols will be included on your declarations page, and the position of the covered auto symbol is just as important as the definition. For the purposes of this article we will include symbols 1-9 as described by the Business Auto Coverage Form. Symbol 1 “Any Auto”. This symbol is usually included on the first box of the declarations page under “Liability” and is the most broad of any symbol. This means that the coverage applies to ANY AUTO used by the policyholder, period. The only limitation to this coverage is that it must be an auto as defined by the policy, which, under the Business Auto Coverage Form (CA0001) is: “Auto” means: A land motor vehicle, “trailer” or semitrailer designed for travel on public roads; or Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. However, “auto” does not include “mobile equipment”. This...