Franklin Insurance Agency sells towing insurance to drivers in Rio Rancho and all of New Mexico. But do you need a separate policy for towing a trailer?

Suppose you are using your non-business car or truck to tow a non-business utility trailer, which is a trailer with raised sides, an open top, and a back gate. In that case, your auto policy gives you liability coverage on your trailer itself. However, you will need separate collision and comprehensive coverage to ensure the value of the trailer.

(Just a quick review. Collision covers damage to your trailer caused by collisions with another object, such as another car, a guardrail, or your car, should your trailer jack-knife against it. Comprehensive covers theft, fire, storm damage, and other listed causes of damage.)

The same principle applies if you are using a non-motorized pop-up or fifth-wheel trailer. Your auto policy covers your trailer for liability but not for collision or comprehensive. You will need separate coverage for the value of the trailer itself.

If you are using a self-propelled, motorized trailer, you need its own policy. Your auto policy generally covers liability, but another policy (ask your agent if your homeowner’s policy covers it) is necessary for collision and comprehensive.

This means that if you tow your car behind your RV, the liability coverage on your RV covers your vehicle, provided it is in neutral, and the motor is turned off. Any "help" by operating the engine of a vehicle you are towing invalidates liability coverage, and any damage to a vehicle you are towing is only covered by its own comprehensive and collision coverage.

Franklin Insurance Agency provides coverage for Rio Rancho, NM, and the state. Call us today for the policy you need!