Utility Trailer Insurance: Cost & Quotes from $11

Table of contents
1 What is Commercial Utility Trailer Insurance?

 

Utility trailers provide unparalleled performance and are integral in commercial trucking just like enclosed trailers. Businesses leverage these commercial utility trailers to haul equipment and machinery as well as transport goods and supplies to destinations. 

Similar to horse trailers, authorities will require you to insure and register big utility trailers. While each state will have various insurance requirements, a standard requirement is purchasing utility trailer insurance.

What is Commercial Utility Trailer Insurance?

Commercial utility trailer insurance is a specialty cover taken out by businesses as a protection from unexpected events involving their commercial utility trailers. It offers compensation in the event that the commercial utility trailer is damaged, lost, or is liable for the injuries and property damage of others. 

Unlike a personal tool trailer insurance, commercial utility trailer insurance is more comprehensive as it offers different kinds of business insurance policies. 

 Commercial Utility Trailer Insurance coverages

The features of commercial equipment trailer insurance differ from one carrier to the next. Nonetheless, these are the most common business insurance policies you can get:

  • General liability insurance
  • Product liability insurance
  • Commercial property insurance
  • Workers compensation insurance
  • Trailer interchange insurance

 

  • General Liability Insurance 

This liability coverage provides financial protection in the event that, as the owner of the trailer, you cause any accident or injure anyone. The coverage pays the victim’s medical bills as well as any other additional costs that are as a result of the accident. Further, the policy will pay for any legal defense in the event that you end up haggled in a lawsuit. 

For utility trailer businesses, general liability insurance provides a $1 million-$3 million per occurrence limit with an aggregate of $3 million-$4 million. 

Professional Liability Insurance

A professional liability policy can be added to commercial utility trailer insurance if you’re using a utility trailer to transport cargo.

Professional liability insurance will pay for indemnification and defense costs if clients sue for negligence because of:

  • Lost cargo
  • Missed or delayed delivery

In the event of the occurrence of the insured risk, professional liability insurance offers a $1 million per occurrence limit with an aggregate of $2 million. 

  • Product Liability Insurance 

Product liability insurance is useful if you’re renting utility trailers. This kicks in when a renter sues for property damage or injuries caused by your utility trailer. 

Similar to general liability insurance, product liability insurance also covers attorney fees, settlements, administrative costs, and other related expenses.

Product liability insurance is available as a stand-alone policy. The limits of the policy are $1 million-$2 million with an aggregate of $2 million. 

  • Commercial Property Insurance 

Commercial property insurance is a protection for your utility trailer business’s building as well as the utility trailers that it owns. This will also cover other business properties such as computers, and generators.

The primary function of commercial property insurance is to recover losses if your utility trailer business’s building is damaged or destroyed by:

  • Fire
  • Theft
  • Vandalism
  • Volcanic action
  • Snow
  • Winds
  • Aircraft
  • Vehicle
  • Sprinkler leakage

For utility trailer businesses, commercial property insurance provides a $15,000-$25,000 coverage for business property damage or loss. This is just the minimum though. It’s possible for you to find a carrier providing up to $500,000 coverage. 

  • Workers Compensation Insurance 

Your utility trailer business will employ people. After all, you need someone to maintain the utility trailers, manage finances, and cater to customer requests. Workers can ask you to provide compensation if ever they sustain a work-related injury.

Workers’ compensation insurance will cover the following costs:

  • Hospitalization–Workers compensation insurance allows your utility trailer business to cover bills on an employee’s behalf. if he or she needs to remain in the hospital for days, weeks, or months
  • Medication-The worker’s compensation insurance of your utility trailer business provides the money which can be used for buying prescription medicines
  • Rehabilitation-The insurance will cover therapist fees, retraining, and other rehabilitation expenses. if the employee of your utility trailer business experiences an impairment after sustaining a work-related injury or disease
  • Lost wages-Your employee can recover lost wages through workers’ compensation insurance if he or she can’t work due to a work-related injury or disease.
  • Funeral expenses-Workers compensation insurance covers funeral expenses if an employee of your utility trailer business dies due to a work-related injury or disease.
Do you need insurance on a utility trailer?

Determining whether you need insurance for a utility trailer depends on several factors, including how you use the trailer and your existing insurance coverage.

  • Trailer Interchange Insurance 

Trailer interchange insurance is a coverage for trailers you borrow or rent under a trailer interchange agreement. If they become lost or destroyed due to theft, breakdown, and other covered perils, trailer interchange insurance will compensate the owner on your behalf. 

Cargo Insurance for Commercial Utility Trailer

The cargo insurance will allow you to reimburse the owners if the cargo being transported through your trailer becomes lost or damaged due to a vehicular accident, employee error, theft, lightning, jettison, and other covered perils. 

 

How Much Is Utility Trailer Insurance

There are various  factors that will affect the cost of utility trailer insurance, such as the type of trailer, the dedicated value of the trailer and the different policies available. Here’s breakdown of average costs along with the affecting factors:

Average Costs

Minimum Coverage: Typically, minimum utility trailer insurance can be estimated to cost between $200 to $800 in a year.

Full Coverage: On the other hand, full coverage can also be high, reaching from $417 to $1, 674 a year, depending on the insurance company and some specific details in the policy.

 

Emergency Roadside Assistance for Commercial Utility Trailer 

Insurance companies also underwrite emergency roadside assistance for utility trailer businesses. This will provide a $750 compensation for transportation expenditures if your utility trailer breaks down and needs to be towed.  You also get a $500-$1,000 refund for tire replacement and roadside repair services.

 

Utility Trailer Rental Insurance 

On average, a dual utility trailer will cost between $1,200 and $3,000, depending on size and weight capacity. A commercial-quality utility trailer will cost between $4,000 and $7,500. 

For most businesses, this will take a huge chunk of your budget. Fortunately, depending on your business model, you can rent out a utility trailer. 

The insurance coverage starts by covering the cost of the actual renting. After that, every cost incurred while you are in possession of the utility trailer is covered by your rental policy. 

 

Utility Trailer Theft Insurance

Theft insurance for utility trailer will cover the repair costs in the event of theft. This policy can also replace your utility trailer if you can’t recover it after being stolen. 

Utility trailer theft insurance is bought as a replacement cost or actual cash value policy. An actual cash value theft insurance will only compensate your loss if the utility trailer gets damaged or lost due to theft. 

On the other hand, replacement cost theft coverage will compensate and give you the chance to buy a new utility trailer. 

Compare Cheap Utility Trailer Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Average Utility Trailer Insurance Cost

The insurance rate for a utility trailer depends on multiple factors. The average utility trailer insurance cost is $800 per year or $66.67 per month for a $1 million liability coverage.  The disparity with this figure is likely since trailers come in all shapes and sizes.

Take a look at this table that shows the rates of the best utility trailer insurance companies:

Company Cost per Month Cost per Year
CoverWallet $25.67 $308.04
NEXT $27.88 $334.56
Tivly $27.88 $334.56
Thimble $31 $372
Progressive $33.83 $406
State Farm $34.75 $417
USAA $35.50 $426
Geico $97.33 $1,168

 

Best Utility Trailer Insurance Companies 

Here’s a breakdown of the best utility trailer insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability coverage. 

 

CoverWallet 

It covers utility trailers used commercially through its commercial truck and trailer insurance program. Policy options are general liability and commercial auto insurance. 

Average cost: $25.67 per month

Our rating: 10/10

Pros

  • Compare insurance quotes for your utility trailer online
  • Covers different kinds of utility trailer businesses
  • Online policy management
  • Cancel a policy anytime 

Cons

  • Not an insurance company but an insurance broker 

Tivly 

You need to call a representative of this company to know if your utility trailer can get covered. If it does, insurance policies you can avail for your utility trailer are equipment breakdown, liability, physical damage, and theft insurance. 

Average cost: $27.88 per month

Our rating: 10/10

Pros

  • Compare quotes over the phone
  • Coverage highly tailored to your needs

Cons

  • You need to call to get a quote 

NEXT 

NEXT provides coverage if you rent or lease utility trailers. Business insurance policies you can avail for your utility trailer business are general liability, commercial property, workers compensation, and more.Coverage for utility trailer rental or leasing businesses is offered in partnership with Tivly. 

Average cost: $27.88 per month

Our rating: 9/10

Pros

  • Best overall
  • Issues an online proof of insurance you can easily show to anyone
  • Fastest GL online
  • Great customer service and reputation
  • Outstanding value for money
  • Bundle two or more policies and get a 10% discount 

Cons

  • Doesn’t underwrite its own utility trailer insurance; only sells it
  • Only covers utility trailers for-rent or lease

Thimble Thimble sells equipment insurance in partnership with Tivly. You can get $2,500-$10,000 physical damage coverage. Theft coverage is capped at $3,000. Note that deductibles may apply. 

Average cost: $31 per month

Our rating: 9/10

Pros

  • Fast online quotes
  • Responsive customer service
  • Cancel your policy and get a quick refund

Cons

  • Doesn’t sell trailer interchange insurance for utility trailers

 

Geico 

Geico is the country’s second-largest insurance company. It offers low rates utility trailer insurance enabling you to save a lot of money on auto insurance. 

 A search online of Geico’s average annual rate is $1,168. This value will be lower or higher depending on the specifics of your utility trailer. 

Average cost: $97.33 per month 

Our rating: 9/10

Pros

  • Utility trailers are towable by Geico 
  • Lowest rates for drivers with poor credit 
  • Customers with previous speeding tickets might find a moderate break with Geico 

Cons

 

  • The personal policy doesn’t allow you to rent out your utility trailer

 

Rank and Review Insurance Companies

Help others make better decisions

Show more

State Farm 

State Farm offers its auto insurance policy in a total of 33 states.a full-coverage policy will cost you $1,045 per year.

Best for: Customers seeking to connect with local representatives

Average cost: $34.75 per month 

Our rating: 9/10

Pros

  • Personalized service from over 19000 agents distributed nationwide 
  • State Farm is the largest auto insurance provider in the United States 
  • Prompt and reliable claim handling 
  • Customers are eligible for 24/7 roadside assistance coverage 

Cons

  • State Farm offers gap insurance 
  • Some states aren’t covered 
  • Strict coverage limits 

 

USAA 

USAA is a great option for young drivers with a utility trailer.  USAA only allows people who have served in the military and those whose direct family members have had USAA insurance. 

Average cost: $35.50 per month 

Our rating: 8/10

Pros

  • Top-notch customer service
  • First-time drivers and new utility trailer owners can be covered
  • Cheap rates 
  • High ratings for claims satisfaction 

Cons

  • Limited coverage to only individuals affiliated with the U.S military
  • Drivers with leased utility trailers are not covered
  • No discounts offered 

Progressive 

Progressive 

Progressive utility trailer insurance makes provisions for policy extension. You can include personal property coverage that includes coverage for all personal effects within the utility trailer.

Average cost: $33.83 per month 

Our rating: 8/10

Pros

  • Customizable specialty products
  • Provides several discounts

Cons

  • A number of negative online feedback 

 

Recent Reviews

Recent Posts


Additional Business Insurance posts