Whether or not you “need” U-Haul trailer insurance, formally known as Safemove® and Safetow® coverage, hinges on a careful assessment of your personal insurance policies and risk tolerance. While not legally mandated in most cases, declining this coverage can expose you to significant financial liability if the trailer is damaged or causes damage to others.
Understanding U-Haul’s Coverage Offerings
U-Haul offers two primary coverage options for trailers: Safemove® and Safetow®. Understanding the nuances of each is crucial before making a decision.
Safemove® Coverage
Safemove® is U-Haul’s most comprehensive coverage option for trailers. It provides protection against:
- Accidental damage to the U-Haul equipment: This includes damage caused by collisions, vandalism, or other unforeseen events.
- Cargo protection: Safemove® covers your transported goods in case of damage or loss due to specified perils like fire, collision, or overturn. Note that certain items and perils are excluded.
- Medical bills and property damage to third parties: This is crucial, as it covers liability if the trailer causes an accident resulting in injury or damage to others.
Safetow® Coverage
Safetow® is a more limited coverage option focused solely on protecting the U-Haul trailer itself. It covers:
- Damage to the U-Haul equipment: Similar to Safemove®, it covers damage caused by collisions, vandalism, or other unforeseen events.
Safetow® does not cover cargo protection or liability for injuries or property damage caused to third parties. This is a significant distinction that should heavily influence your decision.
Assessing Your Personal Insurance Policies
Before opting out of U-Haul’s coverage, meticulously review your existing insurance policies, including:
- Auto Insurance: Contact your auto insurance provider to determine if your policy extends to cover damage to a rented U-Haul trailer and, crucially, any liability arising from its use. Many policies specifically exclude coverage for rented trailers or have limitations on size and weight.
- Homeowners/Renters Insurance: While typically covering your belongings, these policies rarely extend to cover items being transported in a trailer. Double-check the fine print.
- Credit Card Benefits: Some credit cards offer rental vehicle insurance, but this often applies to car rentals and may not extend to trailers or cover liability. Read the terms and conditions carefully.
Crucially, confirm the dollar limits of your existing coverage. Even if your personal insurance offers some coverage, it might not be sufficient to cover the full cost of damage to the trailer, medical bills, or property damage in a significant accident.
Weighing the Risks
Declining U-Haul’s coverage can save money upfront, but it also carries significant risk. Consider the following:
- Potential for Accidents: Even experienced drivers can be involved in accidents. Towing a trailer increases the risk due to reduced maneuverability, longer stopping distances, and blind spots.
- Financial Liability: If the U-Haul trailer causes an accident resulting in injury or property damage, you could be held financially responsible for medical bills, lost wages, vehicle repairs, and legal fees. These costs can easily reach tens or even hundreds of thousands of dollars.
- Repair Costs: Damage to the U-Haul trailer itself can be expensive to repair, especially if it involves structural damage or requires specialized parts.
Ultimately, the decision to purchase U-Haul trailer insurance depends on your risk tolerance and financial capacity. If you are comfortable assuming the full financial burden of potential accidents and damage, you may choose to decline the coverage. However, for most people, the peace of mind provided by Safemove® or Safetow® is worth the cost.
Frequently Asked Questions (FAQs) About U-Haul Trailer Insurance
Here are 12 frequently asked questions about U-Haul trailer insurance to help you make an informed decision:
1. What happens if I damage the U-Haul trailer and don’t have insurance?
You will be responsible for the full cost of repairs or replacement. U-Haul will assess the damage and provide you with a bill. This can range from a few hundred dollars for minor cosmetic damage to thousands of dollars for significant structural damage.
2. Does my car insurance automatically cover a U-Haul trailer?
Not necessarily. Most standard auto insurance policies do not automatically cover rented trailers. You need to contact your insurance provider to confirm whether your policy provides coverage and, if so, what the limits are. Many policies require specific endorsements for trailer coverage.
3. What’s the difference between Safemove® and Safetow®?
Safemove® offers comprehensive coverage, including damage to the U-Haul equipment, cargo protection, and liability protection for injuries and property damage to third parties. Safetow® only covers damage to the U-Haul equipment itself. It does not cover cargo or liability.
4. What kind of cargo is covered under Safemove®?
Safemove® covers your transported goods in case of damage or loss due to specified perils like fire, collision, or overturn. However, there are exclusions, such as jewelry, cash, and perishable items. Review the full list of exclusions in the Safemove® policy.
5. If I have full coverage auto insurance, do I still need U-Haul insurance?
Even with full coverage auto insurance, it’s crucial to verify whether your policy extends to cover rented trailers and provides adequate liability protection. Many full coverage policies have limitations on trailer coverage, and the liability limits may not be sufficient to cover a serious accident.
6. How much does Safemove® and Safetow® cost?
The cost of Safemove® and Safetow® varies depending on the size of the trailer and the rental period. You can get a specific quote from U-Haul when you reserve your trailer. The price is generally a percentage of the total rental cost.
7. Can I purchase U-Haul insurance after I pick up the trailer?
No. You must purchase Safemove® or Safetow® at the time of rental. Once you leave the U-Haul location with the trailer, you cannot add coverage.
8. What if someone else is driving the vehicle towing the U-Haul trailer?
The Safemove® and Safetow® coverage typically extends to authorized drivers listed on the rental agreement. However, ensure that all drivers are properly licensed and have a valid driver’s license.
9. What happens if the U-Haul trailer is stolen?
With Safemove® coverage, you are typically covered for the loss of the trailer due to theft, subject to the terms and conditions of the policy. Safetow® would also cover theft of the trailer. File a police report immediately.
10. Does Safemove® cover damage to my towing vehicle?
No. Safemove® only covers damage to the U-Haul trailer, cargo, and third-party liabilities. Damage to your towing vehicle would be covered by your auto insurance policy, subject to its terms and conditions.
11. What are the exclusions to U-Haul’s insurance coverage?
Common exclusions include intentional damage, damage caused by improper loading or securing of cargo, damage resulting from driving under the influence, and damage to certain types of cargo, such as jewelry, cash, and perishable items. Carefully review the policy for a complete list of exclusions.
12. How do I file a claim with U-Haul if something happens?
If an accident occurs, immediately report it to U-Haul and the local authorities. Gather all relevant information, including police reports, photos of the damage, and contact information for all parties involved. Contact U-Haul’s claim department to initiate the claim process. They will provide you with instructions and necessary forms.