Trailers & Declared Values
Coverage for trailers can be tricky to understand, especially when some terms are new to you. Trailer registration fees and insurance premiums are based on class and trailer type. However, it is up to you to advise on the trailer’s value for your registration. That’s why asking questions when registering and purchasing coverage for your trailer is essential. Here’s what you need to know about trailers and their declared value:
When declaring the value for your registration, the value must be rounded up to the next thousand.
The amount you pay is based on what you set the value to and the type of trailer. The owner of certain types of trailers must declare the unit’s value. The declaration affects both coverage and premium amounts.
The declared value should be set high enough to replace the trailer, including payment of taxes.
If the trailer suffers a total loss, the amount payable to the insured is the lesser value of:
- actual cash value (ACV) or;
- declared value
When the value is declared too low, the owner may experience a shortfall in the payout amount in the event of a total loss.
To learn more and see SGI’s trailer registration classes and rates information page follow the link below:
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