Car Trailer Insurance

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, updated on February 15th, 2024       

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Family looking out the window of a camper trailer.

Car trailers and caravans have several benefits, offering drivers convenience and flexibility whether it’s transporting furniture or holidaying. However, like any other vehicle on the road, they are subject to various risks, such as accidents, theft, and damage caused by unforeseen events. Do you have car trailer insurance in case it's in an incident?

If you're interested in taking out trailer or caravan cover with your car insurance, you can compare policies in an instant online. Get started with your free, no-obligation quote today.

What is trailer insurance and what does it cover?

Trailer insurance is a type of insurance coverage designed to protect trailers and caravans from potential risks and damages. It can provide financial protection in case of accidents and other events that can cause damage to or loss of your trailer.

Depending on your desired coverage level, there are different types of trailer insurance available:

  • Third party property damage (TPPD): can protect you against claims for damage caused by your car trailer to other people's property, but doesn’t cover damage to your own trailer.
  • Third party fire and theft (TPFT): can offer coverage for damage caused by fire or theft of your car trailer, as well as damage to someone else’s property.
  • Comprehensive: provides the highest level of protection for your car trailer. It can typically cover accidental, theft, fire and weather-related damage to your trailer, as well as third-party liability. It may also cover damage to or loss of personal belongings or contents inside the trailer.

Can my car insurance cover my trailer or caravan?

In certain circumstances, your trailer or caravan could be covered by your car insurance. If it’s roadworthy and is being towed by a registered vehicle, it'll be covered by the car’s CTP insurance. However, this only covers liability for injuries or death caused to other people.  

If you have comprehensive car insurance, this may cover your trailer or caravan for certain damages while they are being towed by the insured vehicle, such as third party property damage. However, car insurance policies often set a limit on damage cover, so it's important to compare your options if you're looking for more complete coverage. 

What different car trailers can I take out insurance for?

Trailer insurance in Australia can cover a variety of trailer types, providing protection for different purposes and uses. Some common types of trailers that can be insured include:

  • Caravans: towable mobile homes designed for living or camping purposes.
  • Box trailers: versatile trailers commonly used for transporting general goods, household items, or equipment.
  • Camper trailers: compact, lightweight RVs designed for camping and outdoor adventures.
  • Car trailers: trailers specifically for transporting cars or other vehicles.
  • Horse floats: sturdy covered trailers for transporting horses safely and securely.
  • Boat trailers: trailers used for towing boats, jet skis or other watercraft.
  • Motorcycle trailers: trailers used to securely transport motorbikes.

The types of trailers covered will vary depending on the insurance provider, so it’s important to check that your trailer is covered before taking out a policy. 

If you use your trailer for business purposes, items such as tools and merchandise may not be covered under standard trailer insurance, so you may need to take out additional cover or business car insurance.

Types of car insurance you can choose from

Third party property damage (TPPD)

The most basic type of optional cover available, TPPD insurance can offer protection for damage caused by your vehicle to other people's property. However, no damage to your vehicle will be covered.

Third party fire and theft (TPFT)

A step up from TPPD, TPFT insurance can also cover damage to your vehicle sustained due to a fire or theft (or attempted theft) in addition to third-party property damage if you're in an at-fault accident.

Comprehensive

The most extensive (and expensive) form of cover, comprehensive car insurance can also offer cover for damage to your vehicle in an accident, collision and certain weather events on top of the areas TPFT covers.

What factors affect the cost of trailer insurance in Australia?

Frequently asked questions about car trailer insurance

Is trailer insurance mandatory in Australia?

Trailer insurance isn't mandatory in Australia. However, it offers financial protection and peace of mind in case of unexpected incidents and can cover you if you cause damage to someone else’s property or for repairs to your trailer due to a covered event.

Does trailer insurance cover personal belongings?

Many insurance providers can cover personal belongings and contents stored in your trailer up to a certain amount, though this limit varies from provider to provider. Additional cover can often be purchased if the items you are transporting in your trailer or keeping in your caravan are especially valuable.

What does trailer insurance not cover?

While trailer insurance can offer valuable protection, there are exclusions that typically aren’t covered. This includes:

  • Not sufficiently securing your caravan or trailer
  • Wear and tear or poor maintenance
  • Mechanical breakdowns
  • Intentional damage
  • Illegal activities
Am I covered if I modify my car trailer or caravan?

Just like car modifications, modifications to your car trailer or caravan may impact the coverage provided by your insurer. Some modifications may be covered, while others may result in reduced or voided coverage – for example, some insurers will only recognise changes made by a professional repairer, not any homemade modifications. It's crucial to inform your insurance provider about any modifications made to your trailer or caravan to ensure they’re aware of the changes. You may wish to check before any modifications are made to find out whether they’re able to be covered by your policy.

Is my trailer covered at home and on the road?

If your trailer or caravan is covered under your car insurance policy, it may only be covered while it is attached to your car, meaning it may not be covered against damage and theft if parked at home.

If you've taken out insurance for your trailer or caravan, you should be covered whether you're towing it or it’s parked. However, some insurers may distinguish between the two, so it's important to check your policy to see what you're covered for.

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