Trailer Insurance When You Have a Loan
If your trailer is damaged or stolen while you're still paying it off, you still owe the loan. Insurance is what stops one bad day turning into years of repayments on something you no longer have.
Why it matters more on a loan
When you own a trailer outright, losing it is painful. When it's financed, you lose the trailer and still owe the lender. That's why some lenders require comprehensive insurance on a financed trailer, and why it's wise even when they don't.
What a lender may ask for
Requirements vary. Some lenders ask for proof of comprehensive insurance before settlement and may want to be noted on the policy as an interested party. Your broker will tell you if the lender you're using has any conditions.
Want to talk it through? Send a free enquiry and we'll pass it to a broker who does trailer loans every day. Enquiring doesn't affect your credit score.
What to look for in a policy
- Agreed value rather than market value, so you know what you'd be paid.
- Theft cover, including from home and while parked away.
- Contents, for campers, horse floats and enclosed trailers with gear inside.
- Cover while touring or off-road, if that's how you'll use it.
- Your excess and any conditions about security, such as hitch locks.
Does car insurance cover my trailer?
Often only in limited ways. Many car policies cover damage your trailer causes to other people's property while it's attached, but not damage to or theft of the trailer itself. Check your policy, and ask your insurer what's actually covered.
Budget for it upfront
Add the annual premium to your running costs before deciding how much to borrow. For campers and floats, it can be a meaningful amount. See how much you can borrow.
This is general information. Read the product disclosure statement for any policy you're considering.