If you have a trailer that you use to move your boat, four-wheeler, or items from the home improvement store, you need to make sure you have the right insurance coverage. Your existing auto insurance policy may cover you, but there are a few things you need to watch out for.

Does Your Auto Insurance Policy Include Towing Coverage?

Many auto insurance policies automatically include towing coverage if you have a vehicle that's normally used for towing. For example, you'd usually have coverage if you have a pickup but not if you had a small sedan. If you do modify a car that's not normally used for towing, you may be able to get this coverage added to your policy.

What Does Towing Coverage Cover?

The main towing coverage that you'll get automatically is liability protection. If you cause an accident while you're towing something, you'll generally have the same liability coverage you would have when you aren't towing anything.

The coverage for your trailer and what's in it or on it may be limited. The main purpose of your auto insurance policy is still to protect you from liability and to protect your car. Your policy may have a fixed dollar amount limit that may be less than what your trailer or its contents are worth. Your towing coverage may also exclude certain types of items from your coverage.

What Happens if You Don't Have Trailer Coverage?

The most important thing to check is whether your liability policy remains active while you're towing something. If it doesn't because you don't have any trailer coverage, driving with a trailer without getting coverage is the same as driving without insurance. That's a crime.

If you don't have coverage for your trailer or its contents, your insurance company won't reimburse you for those items. So if you're in an accident or someone steals from your trailer, you would have to replace those items unless you're able to successfully sue the other person.

What Happens if You Don't Have Enough Trailer Coverage?

If you have coverage that's too low, your insurance company will pay up to your policy limits. For example, if you have a $10,000 limit and wreck your $20,000 trailer, you'll get $10,000 instead of $20,000.

You can increase your coverage by calling your insurance company to change your policy or getting a new auto insurance policy that better meets your needs.

To learn more about trailer coverage or to get a quote, contact a local auto insurance company, such as Clover Insurance, today.