Monday, April 13, 2015

Teardrop Trailers and Rental Insurance

In a previous post, I talked about insuring your teardrop trailer. However, what if you want to rent a teardrop trailer for a trial run or if you want to rent out your own teardrop trailer? What insurance issues should you keep in mind?



Renting a teardrop trailer:

If you are renting a teardrop trailer for a test drive or weekend getaway, the liability coverage is tied to your tow vehicle and your existing policy. You should have liability coverage on your tow vehicle by law. Some rental companies will require that you show your proof of insurance and you can request that from your insurance agent. This proof of insurance is called a binder and can be printed or emailed to the rental company. The amount of coverage will depend on your type of insurance account.

Supplemental insurance might also be a good idea. This type of insurance might be offered by the rental company and it will provide additional coverage for bodily injuries or property damage if these are not covered under your current insurance. At the same time, you can also purchase Personal Effect and Personal Accident Insurance for your own personal possessions, e.g. just in case something is stolen from the rental trailer.


Renting out your own teardrop trailer:

Renting out your own teardrop trailer is a different story. Most insurance companies will not cover your trailer if you decide to rent it out to someone with an unknown (to you) driving history. For this case, you will need to contact a local insurance broker to purchase insurance specifically for renting out your trailer.

These types of brokers are familiar with businesses who regularly rent out campers, trailers, moving vans and other mobile units. The type of insurance they will recommend and sell you will have a different kind of liability coverage and will consider more moral logistics like the safety qualifications of your own trailer and the driving history of your customers.

I spoke to a representative at my own insurance company, Geico, and they said that if this type of insurance is purchased for a trailer—they will remove the trailer from the current vehicle insurance since they do not insure for rental businesses. Keep this in mind if you decide to rent out your personal teardrop trailer.




5 comments:

  1. Thanks for the information on renting a trailer. I didn't know that purchasing insurance for a rental would be so difficult. I am firmly in the try before you buy category so this was helpful. Do many rental companies offer insurance like car rental companies do? trailers

    ReplyDelete
    Replies
    1. Thanks Fred. I didn't find the process of getting our trailer put on our existing insurance TOO painful. It was a little bit of a process over the phone, but at least an agent did not have to come out to look at it.

      Many teardrop rental companies do not offer insurance since that is usually covered under your own liability insurance. They will usually have you sign an agreement that covers the cost of the trailer if there is damage during your rental period.

      Delete
  2. What a great blog. Good luck with the job search! And have a burrito for me in CDJ.
    Trailer Hire

    ReplyDelete
  3. Insurance is a yuge issue for teardrop rentals. Our first teardrop rental was with Vacations in a Can in NorCal, and we reserved the L'il Bear trailer mostly due to bed length. However, we couldn't get insurance. Standard car insurance only covered liability with the trailer, not collision/comp for the trailer. Their insurance only covered the trailers they had built and L'il Bear was not. Not willing to take the risk, we had Joe tow the trailer to and from our campsite on the coast. Our next two rentals were with Basecamp Adventure Rentals in Issaquah, WA. They carry insurance on their trailers (built by TC Teardrops), and it was a great experience. I highly recommend them, just don't book them when I want to rent one!

    ReplyDelete
    Replies
    1. Thank you so much for your rental experience Tom.

      Delete