Trailer Insurance Requirements by State: What You Must Know

Whether you’re towing a utility trailer, cargo hauler, boat trailer, or travel trailer, it’s important to understand that insurance requirements for trailers vary by state. While your auto policy may offer limited protection while towing, that doesn’t always meet legal or financial needs — especially for larger or commercial trailers.

In this article, we’ll break down the essentials of trailer insurance requirements by state, help you understand when separate coverage is necessary, and guide you in staying compliant and protected.

Do You Always Need Separate Trailer Insurance?

Not necessarily. Many states do not require a separate policy for smaller, personal-use trailers, assuming the trailer is towed by an insured vehicle. However, this coverage is often limited and won’t include damage to the trailer itself, theft, or contents inside.

Separate trailer insurance becomes essential in certain situations:

• The trailer exceeds a certain weight or value

• The trailer is used for business or commercial purposes

• The trailer is financed or leased

• The state mandates registration and liability coverage

What States Typically Require Trailer Insurance?

Trailer insurance laws differ widely, but here’s a general breakdown:

States That Commonly Require Trailer Registration and Liability Coverage:

• California

• New York

• Texas

• Florida

• Michigan

• Massachusetts

• Oregon

• Washington

• Minnesota

• Illinois

These states often require that trailers above a certain weight be:

• Titled and registered

• Covered under a liability insurance policy

Some also mandate separate trailer plates and may require proof of insurance for the trailer itself, especially for commercial or heavy-duty models.

Example:
In California, trailers used on public roads must be registered with the DMV and may require proof of insurance if they’re being used commercially or exceed certain size/weight limits.

Types of Coverage You May Need by State

Depending on your state and usage, you may be required (or recommended) to carry:

• Liability Coverage – Covers damage your trailer causes to others

• Comprehensive Coverage – Covers non-collision incidents like theft, fire, or vandalism

• Collision Coverage – Covers damage to your trailer from accidents

• Uninsured/Underinsured Motorist – May be required in some states

What Happens Without the Required Insurance?

Failing to meet your state’s trailer insurance requirements can lead to:

• Fines and penalties

• Trailer impoundment

• License or registration suspension

• Out-of-pocket expenses in accidents or theft

Tips to Stay Compliant in Any State

1. Check with Your DMV
   Every state’s Department of Motor Vehicles has trailer registration and insurance requirements listed. Visit their website or call to get up-to-date info.
2. Inform Your Insurer
   Let your insurance provider know if you own or plan to use a trailer. They can help determine if your current auto policy is enough or if you need a separate trailer policy.
3. Know the Trailer’s Use
   Commercial use often requires more robust coverage and may be regulated more strictly by your state.
4. Track Trailer Weight
   Some states only require coverage if your trailer exceeds a certain Gross Vehicle Weight Rating (GVWR).
5. Get It in Writing
   If you’re relying on your auto policy to cover your trailer, make sure you get written confirmation of what is and isn’t covered.

State-by-State Comparison (Sample)

Note: This table is for general informational purposes. Always confirm with your local DMV or insurance provider.

Trailer insurance requirements aren’t always straightforward, and they vary widely by state and usage. While your auto policy may offer some protection, it often isn’t enough — especially for commercial or valuable trailers. Understanding your state’s requirements and getting the right coverage helps protect your investment and keeps you road-legal.