I have always made a point of insuring the Toad together with the MH, i.e. same insurer working on the basis that if there is a claim while towing there is less chance of insurers arguing between them.
You need to make it clear that you need insurance while towing a car, and probably only an insurer who specialises in Motorhomes will know what you mean.
I have both insured through Comfort.
What the situation is if anything happens to the car while its being towed, I don't know as in this case it is a trailer, not a motor vehicle, and so should be covered under the towing vehicles insurance. A single insurer for both at least makes it clear that it's only them you need to deal with.
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