Are Trailers covered under Commercial Auto Insurance?

Are Trailers covered under Commercial Auto Insurance?

A commercial automobile insurance policy provides coverage for both the vehicle that tows the trailer and extends that coverage to the trailer itself.

The main focus of a commercial insurance policy is liability insurance.

It offers financial protection to the trailer owner in case they are responsible for an accident or harm to someone.

An image illustration of whether Trailers are covered under Commercial Auto Insurance
Are Trailers covered under Commercial Auto Insurance
Source: (i0.wp)

What Insurance is Required When Using Your Private Vehicle for Snow Plowing?

If you employ your personal vehicle to clear snow from your property, your personal auto insurance will offer coverage.

Nevertheless, most personal auto insurance policies do not include coverage for vehicles used for business reasons.

If you are running a snow plowing business, there are various insurance options available to safeguard your vehicle from damage and cover any injuries or damage you might cause while plowing.

Commercial Auto Insurance for Snow Plowing: If you use your personal vehicle to plow snow for profit, you need a commercial auto insurance policy. It covers accidents and damage while plowing, including your vehicle and plow.

Snow Plow Insurance: You can get a separate snow plow insurance policy for the plowing season. You usually need a commercial auto policy first, and the coverage limits should match.

General Liability: Business owners often get general liability insurance to handle lawsuits. It covers legal defense. Some insurers add snow plow coverage to this policy.

Considerations: Most snow plow policies are for trucks with front plows. Using a different vehicle may require different coverage.

When Does Commercial Auto Insurance Cover Towing Trailers?

Commercial auto insurance automatically covers trailers with a gross weight under 2,000 pounds through the liability portion of the policy.

However, if your trailer weighs 2,000 pounds or more, you must add physical damage coverage to your policy or purchase separate trailer liability insurance.

What Isn’t Covered by Business Auto Insurance?

Business auto insurance does not extend coverage to:

  1. Deliberate property damage or injuries
  2. Incidents tied to work or falling under workers’ compensation insurance
  3. Accidents involving non-owned, rented, borrowed, or employee-owned vehicles
  4. Mishaps involving specialized equipment such as cranes or forklifts Nevertheless, business auto insurance will cover a replacement vehicle if your covered vehicle is undergoing repairs or servicing. Coverage for these vehicles can also be incorporated into a general liability or business owner’s policy.
An image illustration of Commercial Auto Insurance covering Trailers
Commercial Auto Insurance covering Trailers
Source: (eastinsurancegroup)

How Much Does Business Auto Insurance Cost?

The cost of business auto insurance is not uniform and varies based on factors like:

  1. The type of vehicle
  2. Its usage
  3. The driving records of the drivers operating it
  4. Industry-specific or driving-related risk factors However, as a general guideline, the annual insurance costs for different vehicle types are approximately:
  5. Smaller consultant/commuter vehicles: $600 to $1,500
  6. For-hire trucking vehicles: $5,000 to $15,000
  7. Livery vehicles: $2,000 to $60,000

How to Secure the Best Business Auto Insurance Policy?

Today, many insurance providers offer online services and can provide instant quotes.

You can obtain quotes from multiple providers and compare both the price and coverage options for commercial auto insurance.

This approach will assist you in finding a provider that offers the most suitable policy tailored to your requirements and budget.

Frequently asked questions

  • What does trailer interchange coverage entail?
  • Is insurance necessary for trailers in Pennsylvania?
  • What are the criteria for commercial auto insurance in Massachusetts?
  • What are the prerequisites for commercial auto insurance in California?
  • What are the stipulations for commercial auto insurance in Texas?

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