I've always reversed like that as well. My current car has a video screen which helps, but I don't rely on it. As I said, I've always been crap at reversing, but I'd be totally screwed with a caravan..! I've only ever driven with something on tow once, when I was taxi driving. I had to take a trailer load of bonded luggage from Birmingham Airport to Gatwick after a flight got diverted. The customs lot loaded it all up, sealed it with umpteen seals and locks, and told me "Don't stop for anybody. If the police pull you over, don't let them open it, get them to call us..!"
Fortunately I managed the whole trip there and back without getting pulled and without having to reverse..! The car was an old shape Ford Granada, lovely old thing it was.