Do you need trailer insurance when pulling a trailer or does car insurance cover it?

Insurance laws vary from state to state so you need to check your policy. Generally speaking, liability coverage extends from the vehicle pulling the trailer but physical damage does not. This means that if you back a trailer of any kind into someone elses vehicle at a gas station your auto insurance will cover the damage done to the other persons vehicle but not damage to the trailer, boat, camper, whatever. You need to purchase a policy for the trailer if you want coverage for it but if you are only concerned with liability you need not buy the extra policy. As a matter of full disclosure, I own and operate a small Independent Insurance Agency in Georgia and have for 22 years. I also was an agent for a direct writer insurance company for 3 years prior.