The simple answer is: yes, in most situations, you need insurance coverage for your trailer in Ontario. While Ontario law doesn’t mandate direct trailer insurance like it does for cars, your trailer’s liability coverage typically comes from the insurance policy of the vehicle towing it. However, this coverage has limitations, making supplemental trailer insurance a crucial consideration for comprehensive protection.
The Tow Vehicle’s Insurance Policy: The Foundation of Trailer Coverage
In Ontario, the Highway Traffic Act primarily focuses on the towing vehicle’s insurance. Your car, truck, or SUV’s insurance policy generally extends its liability coverage to the trailer you are towing. This means that if your trailer causes an accident while hitched to your vehicle, your tow vehicle’s insurance would be responsible for covering damages or injuries to third parties.
However, relying solely on your tow vehicle’s insurance can be a risky proposition. The coverage extends only to liability claims. This typically covers things like:
- Bodily injury to others
- Property damage to others
- Legal defense costs if you are sued because of an accident caused by your trailer
The Gap: Why Supplemental Trailer Insurance is Essential
The crucial point to understand is that your tow vehicle’s insurance does not cover damages to your trailer itself. If your trailer is damaged in an accident, stolen, vandalized, or suffers damage from weather conditions, your car insurance policy generally will not pay for repairs or replacement.
This is where supplemental trailer insurance comes into play. It provides coverage for physical damage to your trailer, regardless of whether it’s attached to your towing vehicle or not. This includes:
- Collision Coverage: Pays for damages to your trailer if it’s involved in a collision with another vehicle or object.
- Comprehensive Coverage: Protects your trailer against theft, vandalism, fire, wind, hail, and other covered perils.
- Uninsured/Underinsured Coverage: Protects you if your trailer is damaged by an uninsured or underinsured motorist.
Without supplemental insurance, you would be entirely responsible for the cost of repairing or replacing your trailer, which can be a significant financial burden, especially for larger or specialized trailers.
Types of Trailers and Their Insurance Needs
The type of trailer you own significantly impacts the type and amount of insurance you need. Consider the following categories:
Utility Trailers
These are the most common type of trailer, used for hauling landscaping materials, furniture, or other household items. While your tow vehicle’s liability coverage applies when the trailer is attached, supplemental insurance is highly recommended to protect the trailer itself from damage or theft, especially if you regularly leave it unattended.
Boat Trailers
Protecting your boat is paramount, and your boat trailer is essential for transporting it. Boat trailer insurance is crucial to cover damages sustained while your boat is on the trailer, as well as damage to the trailer itself. Many boat insurance policies offer endorsements that cover the trailer, but standalone trailer insurance is also an option.
Travel Trailers and Campers
These are essentially mobile homes and require significant insurance protection. Travel trailer insurance policies typically cover physical damage, liability (when detached from the tow vehicle), personal property inside the trailer, and emergency expenses like hotel costs if you’re stranded due to a covered event. The coverage is far more comprehensive than what a towing vehicle’s policy offers.
Horse Trailers
These trailers are specialized and require specialized insurance. Horse trailer insurance covers damage to the trailer, as well as potential liability if your horse causes damage or injury while being transported. Some policies also offer coverage for veterinary expenses if your horse is injured in transit.
Commercial Trailers
If you use your trailer for commercial purposes, such as hauling goods for your business, you’ll need a commercial trailer insurance policy. Standard personal trailer insurance policies typically exclude commercial use. Commercial trailer insurance offers liability protection specifically tailored to the risks associated with commercial activities.
Getting the Right Coverage: Key Considerations
When choosing trailer insurance, consider these factors:
- Trailer Value: Ensure your coverage limits are sufficient to replace your trailer if it’s a total loss.
- Usage: How often do you use your trailer, and for what purposes? More frequent use and more demanding applications typically require broader coverage.
- Storage: Where do you store your trailer when it’s not in use? Areas with high crime rates may necessitate comprehensive coverage for theft and vandalism.
- Deductible: Choose a deductible you’re comfortable paying out-of-pocket in the event of a claim. Higher deductibles generally result in lower premiums.
- Policy Exclusions: Carefully review the policy exclusions to understand what events and situations are not covered.
Frequently Asked Questions (FAQs) About Trailer Insurance in Ontario
1. What happens if my trailer detaches from my vehicle and causes an accident?
If the trailer detaches while hitched to your vehicle and causes an accident, your tow vehicle’s liability insurance would typically cover damages and injuries to third parties. However, damage to your own trailer would not be covered unless you have supplemental trailer insurance.
2. Does my home insurance cover items stored in my trailer?
Generally, no. Home insurance policies typically do not extend coverage to items stored in a trailer. For belongings stored in a travel trailer, for example, you’ll likely need to add a specific rider to your travel trailer insurance policy.
3. Is coverage affected if I lend my trailer to a friend?
If you lend your trailer to a friend, your tow vehicle’s liability insurance may still apply if your vehicle is the one towing it. However, it’s essential to understand the terms of your policy, as some may have restrictions regarding who is covered. For damage to the trailer itself, your friend’s negligence could potentially impact coverage under your supplemental policy. Always check with your insurance provider.
4. What is “stated value” versus “actual cash value” when insuring a trailer?
Stated value is the agreed-upon value of the trailer when the policy is purchased. Actual cash value (ACV) considers depreciation when determining the payout in the event of a claim. Stated value policies usually result in higher premiums, but offer better protection in the event of a total loss.
5. Can I get insurance on a trailer I built myself?
Yes, you can insure a trailer you built yourself. However, you’ll need to provide detailed documentation of the trailer’s construction, including receipts for materials and an appraisal to determine its value.
6. What documentation do I need to get trailer insurance?
You’ll typically need the trailer’s Vehicle Identification Number (VIN), proof of ownership (bill of sale or registration), and information about the trailer’s value, usage, and storage location. If the trailer is custom-built, you’ll also need documentation related to its construction.
7. Are there any discounts available for trailer insurance?
Yes, many insurance companies offer discounts for things like bundling your trailer insurance with your auto or home insurance, having safety features on your trailer (like anti-theft devices), or maintaining a good driving record.
8. If my trailer is only used a few times a year, do I still need insurance?
Even if you only use your trailer occasionally, it’s still vulnerable to damage or theft while it’s being stored. Supplemental trailer insurance provides protection against these risks, regardless of how frequently the trailer is used. Liability coverage from your tow vehicle still applies when in use.
9. How does trailer insurance work for snowmobile trailers?
Snowmobile trailers are often covered under the same principles as other utility trailers. Your tow vehicle’s liability insurance applies when the trailer is attached, but supplemental insurance is crucial for protecting the trailer itself from damage, theft, or loss.
10. What if I’m towing a trailer across the border into the US?
Your Ontario insurance policy may extend coverage into the US, but it’s crucial to confirm this with your insurer. Some policies have geographic limitations, and you may need to purchase a supplemental policy to cover you while you are in the US.
11. Does trailer insurance cover cargo inside the trailer?
Typically, no. Trailer insurance primarily covers the trailer itself. To protect your cargo, you may need a separate cargo insurance policy or an endorsement to your existing business or home insurance policy.
12. How much does trailer insurance cost in Ontario?
The cost of trailer insurance varies widely depending on the type of trailer, its value, your coverage limits, and your deductible. Obtain quotes from several insurance companies to find the best coverage at the most competitive price.