Do You Have to Insure a Trailer? State-by-State Insurance Requirements Explained

In the world of trailer ownership-whether you're hauling motorcycles, skid steers, or materials for a big job-one question stumps almost everyone:

Do you have to insure a trailer?

The answer? It depends. And if you're crossing state lines, it really depends.

Trailer insurance isn't a one-size-fits-all requirement. Some states demand it. Others don’t. Some only require it if you're financing. Others only care if it’s for commercial use. Confusing, right?

At Drop Deck Direct, we work with buyers across the country who are investing in drop deck trailers for safety and efficiency . Whether you’re running a one-man landscaping operation or managing a full fleet of enclosed haulers, understanding how insurance works in your state is key to staying compliant, protected—and profitable.

Let’s break it all down.

What Is Trailer Insurance, and What Does It Cover?

Trailer insurance, like the name suggests, provides financial protection for your trailer. But coverage varies. Most policies fall into one of three categories:

• Liability coverage: Pays for damage your trailer causes to others.

• Comprehensive coverage: Covers non-collision damage, like theft, weather, or vandalism.

• Collision coverage: Covers trailer repairs after an accident, no matter who was at fault.

  
  

But here's the catch—you may already have partial coverage through your tow vehicle’s insurance. However, this is usually limited liability only, and only when the trailer is attached. That’s why knowing your state’s rules (and what your policy actually covers) is crucial.

Do You Have to Insure a Trailer? (Yes... No... Sometimes)

Let’s answer the main question head-on.

Do you have to insure a trailer?

If it’s registered and being towed on public roads: most states say yes.If it’s financed or leased: the lender says yes.If it’s commercial: insurance is highly recommended, if not required.

But just like registration and titling, every state handles trailer insurance differently.

Let’s look at it across the U.S.

State-by-State Trailer Insurance Requirements

(Always verify with your local DMV or insurance provider, as laws can change.)

State	Insurance Required?	Notes
Alabama	⚠️ – Conditional	Required if used commercially or exceeds weight threshold
Alaska	✅ – Required	Insurance required for all trailers registered for road use
Arizona	⚠️ – Conditional	Based on use; commercial trailers must be insured
Arkansas	⚠️ – Conditional	Personal trailers often exempt; commercial trailers require coverage
California	✅ – Required	Liability insurance required for trailers over 6,000 lbs
Colorado	⚠️ – Conditional	Required for business use or heavier trailers
Connecticut	✅ – Required	Required for all registered trailers
Delaware	✅ – Required	Mandatory liability coverage for all trailers
Florida	⚠️ – Conditional	Required for commercial or financed trailers
Georgia	✅ – Required	Required for trailers over 3,000 lbs GVWR
Hawaii	✅ – Required	All registered trailers must be insured
Idaho	⚠️ – Conditional	Required for commercial trailers or if trailer exceeds weight limits
Illinois	⚠️ – Conditional	Not required for small personal trailers; recommended for others
Indiana	❌ – Not Required	No trailer-specific insurance mandate
Iowa	⚠️ – Conditional	Required if trailer is titled or commercial
Kansas	⚠️ – Conditional	Based on weight and use
Kentucky	✅ – Required	All trailers must be insured
Louisiana	✅ – Required	Trailer liability coverage required
Maine	✅ – Required	Required for all road-use trailers
Maryland	✅ – Required	Insurance proof required at registration
Massachusetts	✅ – Required	Must carry trailer liability coverage
Michigan	⚠️ – Conditional	Required for commercial or larger trailers
Minnesota	⚠️ – Conditional	Liability extends from tow vehicle, but full coverage recommended
Mississippi	❌ – Not Required	Insurance not mandated for utility or personal trailers
Missouri	⚠️ – Conditional	Based on trailer type and use
Montana	⚠️ – Conditional	Required for commercial or higher GVWR trailers
Nebraska	⚠️ – Conditional	Required if trailer is titled and in use on roads
Nevada	❌ – Not Required	Not required unless used for commercial purposes
New Hampshire	✅ – Required	Trailer insurance required by state law
New Jersey	✅ – Required	All trailers must be insured and registered
New Mexico	⚠️ – Conditional	Required for larger or business trailers
New York	✅ – Required	Liability coverage required for trailer registration
North Carolina	✅ – Required	Trailer must be insured and titled
North Dakota	⚠️ – Conditional	Commercial trailers require coverage
Ohio	⚠️ – Conditional	Tow vehicle’s insurance may extend; trailer-specific insurance optional
Oklahoma	⚠️ – Conditional	Depends on trailer size and business use
Oregon	✅ – Required	All registered trailers require insurance
Pennsylvania	✅ – Required	Liability insurance mandatory for trailers
Rhode Island	✅ – Required	Required for all utility and commercial trailers
South Carolina	⚠️ – Conditional	Required for commercial trailers; optional for personal use
South Dakota	⚠️ – Conditional	Based on trailer size and registration type
Tennessee	⚠️ – Conditional	Commercial use or titled trailers require coverage
Texas	✅ – Required	Mandatory for trailers over 4,500 lbs GVWR
Utah	⚠️ – Conditional	Required if trailer is titled or used in business
Vermont	✅ – Required	All road-use trailers must be insured
Virginia	✅ – Required	Required for commercial and most utility trailers
Washington	✅ – Required	Liability insurance required for all trailers
West Virginia	✅ – Required	All registered trailers must carry insurance
Wisconsin	⚠️ – Conditional	Required for business trailers or larger equipment trailers
Wyoming	⚠️ – Conditional	Commercial trailer insurance required; optional for small personal use

Many states base trailer insurance requirements on Gross Vehicle Weight Rating (GVWR) or intended use (personal vs. business). And if you're operating across multiple states, you’ll need to stay compliant in each one you drive through.

Do I Need Trailer Insurance if My Truck Is Insured?

This is where most owners get it wrong.

Your auto insurance may offer liability coverage for the trailer when it's hitched. But if it’s unhitched? Stolen from a job site? Damaged by hail overnight?

You’re likely not covered.

This is especially true for enclosed trailers carrying tools, or cargo trailer insurance policies where the payload itself holds value. Don’t assume you’re protected—read your policy carefully or speak with an insurance agent who knows trailers.

What Type of Trailer Do You Have?

Insurance needs differ by trailer type. Here’s a quick breakdown:

Utility Trailers

Used by homeowners, landscapers, and small contractors. While often exempt from mandatory coverage, they’re still vulnerable to theft or collision. A basic utility trailer insurance policy is inexpensive and smart.

Cargo & Enclosed Trailers

If your trailer hauls valuable tools or equipment, your coverage should reflect that. A cargo trailer insurance policy can include coverage for the trailer itself and the contents inside—especially critical if you’re operating a business.

Equipment Trailers (Like Drop Decks)

Hydraulic drop deck trailers are often used for scissor lifts, compact equipment, and other high-value cargo. These units represent a serious investment—and liability if something goes wrong. Even if not required by your state, insuring your trailer is just smart business.

Looking for a safer way to move equipment without ramps or strain?

View our full line of drop deck trailer models built for ground-level loading and heavy-duty hauling.

When Is Trailer Insurance a Must?

1. When Your Trailer Is Financed

Most lenders require comprehensive and collision coverage until it’s paid off. No exceptions.

2. When You Cross State Lines

Operating in multiple states can expose you to various liability laws. Insurance keeps you covered in transit.

3. When You’re Using It for Work

If your trailer is part of your income-generating equipment, it needs to be insured. Liability claims can bankrupt small businesses. Don’t take the risk.

How Much Does Trailer Insurance Cost?

Costs vary based on:

• Trailer type, size, and value

• State of registration

• Coverage types (liability, comprehensive, cargo)

• Whether it’s commercial or personal use

Basic trailer policies can start around $5–$10 per month for liability.Comprehensive packages for commercial equipment trailers can range from $150 to $500 annually or more.

Where to Get Insurance for Trailers

Start with your current auto insurer. Many offer trailer endorsements or standalone policies.

Then compare quotes from:

• Commercial insurance providers

• Specialty trailer insurers

• Brokers familiar with utility and cargo trailer insurance

When shopping, ask:

• Does this policy cover theft when unhitched?

• Are contents inside the trailer covered?

• What happens if my trailer damages someone else’s property?

• Will my state accept this policy as proof of liability?

  
  

Final Thoughts: Protect Your Investment

So, do you have to insure a trailer?

In some states—yes.If you’re financing—absolutely.If you're using it to earn a living—you're risking everything without it.

Even when it’s not legally required, trailer insurance is often the smartest financial move you can make. Think of it as peace of mind on wheels.

At Drop Deck Direct, we build trailers that lower to the ground, but we raise the bar for safety and functionality. We want you to protect what moves your business forward.

Questions? Need Help Matching a Trailer with Your Insurance Needs?

We’re happy to walk you through trailer specs, GVWR, and common insurance requirements for our models.

Let’s make sure you’re hauling safely—and legally.

Contact Us