All states require drivers to carry liability insurance in case of accidents. The towing vehicle's liability policy covers any liability incurred by the travel trailer.
Some states have no-fault rules, meaning both parties to an accident use their own insurance company to pay for the damage to property. Other states are considered tort states where the cited driver can be sued for damages by the harmed party. Add-on states are states in which either driver can receive compensation from their own insurance companies and may face lawsuits from the injured party for damages.
The towing vehicle's collision and comprehensive policy does not cover the travel trailer. Unless the travel trailer is paid for, lenders require the owner of the travel trailer to carry collision insurance on the travel trailer that covers damage to the trailer or pays off the lien should the trailer be totaled. These policies have deductibles, and once met, the insurance company pays off the claim.
People who rent travel trailers for a vacation need to find out if the leasing company provides insurance and in what amounts. If the insurance is included, the renters should ask their vehicle insurance company if they sell temporary policies that cover the deductibles, which could be high. Renters can also ask the rental company if they can pay an additional premium to reduce the deductible.
Comprehensive insurance covers the exterior and interior of trailers. The comprehensive policy covers window breakage or siding damage and theft of items stored inside travel trailers. Comprehensive also includes weather damage from high winds or hail. Companies that insure travel trailers bundle comprehensive insurance with collision coverage.
