There exist different types of car hauling trailer insurances which either serve personal or commercial purposes. Generally, purchasing an insurance policy is not compulsory for those who use a trailer for their own personal work. However, in case you have a car hauling bed for carrying out commercial operations, buying appropriate coverage is a must, as per some specific laws, along with registration from the dept. of motor vehicles.
The type and amount of coverage you need for your 5 or 4 car trailer will depend on the regulations existing in the state that you are in. The best thing that you can do is get in touch with an insurance agent who would assist you with the regulations and rules. But before you proceed with these things, it can be great to have some foreknowledge about the different coverage options available in the market. Given below are brief descriptions of the primary ones:
Collision
Collision insurance can provide financial protection against collateral damage caused due to accidentally running into some sturdy stationary object. It can also offer coverage in case of a broken tree crashing on your equipment and devastating it severely, even though it may be regarded as something resulting from a natural calamity.
Comprehensive
Anything related to hauling a trailer behind a tow truck is risky & dangerous as well as full of uncertainties. As there is almost always some extra load attached to the rear part of a vehicle, driving tends to be very unpredictable. Therefore, comprehensive insurance covers events such as collision with animals on road, harsh weather like hail storm or flooding, theft, etc.
On Hook
Damages can occur irrespective of whether a vehicle attached with a trailer is in transit or has to be hauled later on. However, having on hook insurance can enable protection against mishaps such as collision, vandalism, explosion, fire, theft and so on.
Liability
In case a trailering accident takes place because of the fault of the driver, presence of liability coverage can assist in compensating for injuries accidentally inflicted on the opposite party, as well as destruction to their private property. It usually covers for any physical injury to the people, net limit in case multiple individuals are injured, and property damage reimbursement.
Thus, if you are new in the field of auto trailering, make sure you obtain proper information about and invest in the above mentioned insurance policies.
