Does Car Insurance Cover a Boat Trailer Accident?
Unfortunately, you’ve had a car accident while you’re towing your boat. Your day on the water is in question and now you need to know if your insurance covers it. How does car insurance cover an accident when you’re towing your boat?
Did you know? If you get into a car accident while hauling your boat, the insurance coverage for your boat and your trailer usually aren't covered under the same insurance policy. Typically, your car insurance and your boat insurance will be involved in covering the boat trailer accident.
Western Financial Group, a 100% Canadian company, can help you navigate your boat, car, home, and business insurance during this period of economic uncertainty.
Does my car insurance cover a boat trailer accident?
It’s a bit complicated, so let’s take a look at what car insurance and boat insurance covers. A boat isn’t covered under your car insurance policy. A home insurance policy usually provides little coverage for a boat, especially if it’s bigger and more expensive than a canoe or rowboat.
Here’s where your car insurance comes into play. Your car insurance policy's liability coverage applies to accidents involving your vehicle. If you have caused damage to another vehicle or property, or have injured someone, your car insurance will cover these costs up to your policy limits.
Key takeaway: Boat insurance does not cover liability for injuries or property damage caused by a car accident while hauling your boat because that falls under your car insurance policy.
Does my boat insurance cover a car accident that damages my boat?
Typically, your boat insurance will cover damages to your boat caused by a car accident while towing your boat, but check the details of your boat policy. It may include coverage for the trailer, but, again, you will need to check your boat insurance policy for land coverage.
What if my car gets damaged in an accident hauling my boat?
Any damage to your car is covered under your auto insurance, not your boat insurance.
What about damage to my boat trailer caused by the car accident?
Your car insurance typically does not cover physical damage to your boat trailer in an accident unless the trailer is specifically listed on your car insurance policy with collision and comprehensive coverage.
Boat insurance policies can include coverage for the trailer, but as mentioned you will need to check with your insurance provider.
If your boat insurance policy includes coverage for the trailer, it can cover physical damage to the trailer caused by an accident, theft, or other specific events in your boat policy.
Top tip: Find out whether your boat trailer is listed under your auto or boat insurance. You can also consider buying separate boat trailer insurance for wider coverage. Be sure to look for exclusions related to towing accidents.
How do I insure my boat trailer?
If your boat trailer isn’t specifically covered by your boat insurance, you may need separate boat trailer insurance or you may need to add it to your car insurance policy.
Do I need to license my boat trailer?
In Canada, boat trailers typically require registration and a license plate because they are considered separate vehicles. You'll need to register your trailer with your province or territory's ministry of transportation.
Why boat insurance is important
While not mandatory in Canada, boat insurance protects your investment in your boat and you and your loved ones.
Accidents while boating can result in damage to other boats, docks, or injuries. Liability coverage protects boat owners financially by helping to cover legal costs, property damage, and medical expenses.
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