Auto Insurance Claims: coverage for damaged trailer, hummer3, distinct times

Question
Monday, March 31, my wife and I were headed from the Denver area to Moab, UT on Interstate 70.  We were in a Tahoe and towing a utility trailer carrying 3 ATVs.  Our daughter and family were traveling ahead of us in a separate vehicle.  She called to say they had just squeaked by a jack-knifed semi blocking the right lane and shoulder in white conditions on very slippery road.  As we topped the summit of Vail pass, we moved to the left lane and slowed way down, and shortly we were in a limited visibilty snow storm.  Suddenly ahead we could see that all lanes were now blocked with a cluster of wrecked cars and trucks.  I applied my brakes, but was hit from the rear by a VW Bug (which, we later learned, was going 45 mph), and I sped up instead of slowing down.  The Tahoe impacted 2 vehicles, and the trailer jack-knifed with the VW lodged straight under it.  Then a Hummer3 hit our right side 3 distinct times as it skidded into the Tahoe and a vehicle to the right of us.  The VW driver was ticketed for dangerous driving or such and for lack of proof of insurance.  Now my insurance is taking care of our Tahoe just fine, but the representative handling the claim says they owe us only $500 for our totaled trailer.  That doesn't even cover the towing and storage on the trailer.  Isn't a utility trailer included in the car's insurance coverage?  I understand that the contents of the trailer might not be, but the trailer itself should be covered, I thought.  That's was the owner of the recovery place told me as well as several other folks.  What's the real truth??

Answer
Hi Randall,
One thing is for sure, you are certainly owed a better explanation

Your trailer is covered automatically as an extension of the auto policy for LIABILITY only.  If you want it covered for comprehensive and collision, it must be named on the policy and a premium paid based on it's value.

If you carry comprehensive and collision, then you are owed the full value of the trailer (less your deductible).

If you DON'T carry comprehensive and collision on the trailer, you are owed nothing.

So where did they suddenly find $500 coverage?

Based on the Information available, I can only guess that you have your auto and home insured with the same company.  There is a standard clause under homeowner policies that provides up to $500 for unnamed utility trailers, so perhaps the coverage is coming from there.

Approach your insurance company and demand a full explanation.

I hope this information will be of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area