Does my car insurance cover towing a caravan?

A caravan is a portable camper you tow behind your car during a trip. Like an RV, you can “live” in your caravan. Most of them feature:

• beds
• toilets
• cooking equipment

The difference is an RV is a singular unit with a motor that you can drive, while a caravan is a separate apparatus that gets towed behind another vehicle.

Adventure-seekers and road-trippers love campers because they offer more flexibility than hotels. The presence of suitable lodging doesn’t have to dictate the logistics of your trip. You can set up shop for the night at any of the following:

• RV park
• campground
• Walmart parking lot

Before you set off across the country on a camper trip, there are important insurance considerations you should know about. Because your caravan is a separate unit from your vehicle, it requires separate insurance.

Your existing auto policy might include this coverage. Chances are, though, that it doesn’t. This lack of coverage means you’ll have to add coverage for your caravan.

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The following sections describe the different policies available and what they cover.

Types of Caravan Insurance

You have many factors to consider when towing a caravan. These factors include protecting the caravan itself, insuring the contents inside, and shielding yourself from liability if you hit another vehicle.

The following insurance coverage types solve these problems and others.

Liability Insurance

Liability insurance pays for damage you cause to another vehicle or injuries you inflict on another person, in an at-fault accident. It is mandatory in almost every state.

Only two states let you get away with not having it: New Hampshire and Virginia. But even if you’re traveling in those states, you want liability coverage. Otherwise, you’ll have to pay out-of-pocket if you cause damage or injury to another person.

You don’t want to pay out-of-pocket. Vehicle repairs can be costly and medical bills can be costlier.

The 48 states that require liability insurance all have minimum coverage levels but these levels are often insufficient to give you peace of mind that an accident won’t ruin you financially.

For example, California makes you carry only $5,000 in property liability coverage. Given that most cars are worth much more than $5,000, this amount is woefully low.

Towing a caravan makes you even more of a liability on the road. Caravans are big, heavy, and can do a lot of damage.

Because of their hefty weight, they don’t stop as fast as, say, a Honda Civic so you want to be sure you have enough liability insurance to give you peace of mind in the unlikely event you’re at fault in an accident.

Collision Insurance

When you’re at fault in an accident, liability insurance only pays for the other vehicle and its inhabitants.

If you want to protect your own vehicle and caravan, you need collision insurance.

It covers physical damage to your vehicle. You’ll have to review your policy to see if your existing collision insurance covers towing a caravan.

If not, you can buy this coverage separately, either from your current company or one that specializes in insuring caravans.

Comprehensive Insurance

Collision insurance pays for damage to the caravan in an accident. It won’t cover you, though, if your caravan gets damaged in a storm, or if it is vandalized or stolen. You’ll need comprehensive insurance for these scenarios.

Personal Injury Protection (PIP)

Some states, such as Florida, don’t assign fault in car accidents when it comes to personal injury. If you get hurt in an accident, you’re responsible for your own medical bills regardless if you were at fault.

These states require drivers to carry a PIP policy to cover them for personal injury.

The question when towing a caravan is this: does your PIP policy cover you for injuries sustained while in the caravan? You’ll need to review your policy or consult with your agent to answer this question.

Uninsured/Underinsured Motorist Coverage

Perhaps the most infuriating car accident scenario is when the other driver is at fault but doesn’t have insurance. Since you weren’t at fault, your collision and comprehensive coverage won’t pay for damages.

Since most uninsured drivers aren’t rolling in money, it’s unlikely you’ll see a dime from the person responsible. Uninsured/underinsured motorist coverage protects you in this situation. It replaces the insurance the other driver should have been carrying but wasn’t.

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Homeowner’s/Renter’s Insurance Policies

You might have existing caravan coverage that is contained in your homeowner’s or renter’s policy, rather than your auto policy. If this is the case, it’ll be one or both of two coverage types: property insurance and content coverage.

Property Insurance

Property insurance resembles collision coverage. If you have this coverage in your homeowner’s policy, it protects you against damages to your caravan itself. But it doesn’t cover the contents inside. To protect your valuables, you’ll need content coverage.

Content Coverage

Content coverage is the part of a homeowner’s policy that covers what’s inside your home. If someone breaks into your house and steals jewelry from your nightstand, content coverage provides restitution.

When you’re on a trip, your caravan is your home. Therefore, your homeowner’s insurance policy may cover the items inside. If not, you can pay extra to extend your coverage to your caravan.

Temporary Policies

What if your existing auto or homeowner’s policy doesn’t cover your caravan, and you have a trip coming up? You can purchase a temporary policy.

The first place you might want to check is your auto or homeowner’s insurance company. Many insurance companies offer discounts to customers who buy multiple lines of coverage.

Don’t just assume that your current company offers the best deal available.

Like with any insurance, you should compare several offers before making a decision. There are insurance companies that specialize in supplemental policies, including ones for caravans.

Check with them, as well. Also, if you’re renting a caravan, the rental company most likely offers temporary insurance to cover your trip.

Comparison Shopping

No matter what coverage you decide on, remember to do two things to ensure you’re always getting the best deal: compare multiple offers and review your coverage every six months.

Compare Multiple Offers

The first caravan insurance quote you receive might sound like a great deal. But how do you know for sure that it is? If you haven’t compared it to other offers, you have no frame of reference.

A good rule of thumb is to get three offers, and preferably four, before making a decision. Then you can choose a policy with confidence, knowing it’s the best deal for you.

Review Your Coverage

Most auto insurance policies renew every six months. You should review before you renew. A chance exists that your current policy isn’t the best one going forward.

If your needs have changed or a better policy now exists, reviewing your coverage helps you identify the better deal and make a change.

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