Trailer Interchange Coverage

This is an insurance coverage that covers damage caused to a non-owned trailer under your care while you’re operating under a written trailer interchange agreement. Sometimes a load needs to be transferred to a different trucker to complete the delivery to the final destination. What happens if that trailer is damaged when not attached to the owner’s truck?

 There are times though, the trucking company that owns the trailer will have insurance to cover their trailer while it is under your care. In that case, you won’t need this coverage. Sometimes, a less formal agreement is made when a trucker needs to haul someone else’s trailer and goods. In these cases you would need a Non-Owned Trailer Physical Damage policy.

What Does Trailer Interchange Insurance Cover?

Trailer Interchange covers trailers you use. Trailer interchange physical damage insurance covers trailers during loading and unloading. It covers trailers from fire, wrecks, theft, vandalism, and any other causes of physical damage. Many shippers and motor carriers require that you have trailer exchange insurance if you want to do business with them.

How Much Does Trailer Interchange Insurance Cost?

This coverage should add between $100 and $1800 a year to your overall insurance cost. Factors include your loss history, location, equipment value, and driving record.

Trailer Interchange Limit Requirements

The average limit is between $20,000 and $30,000, with a deductible of $1,000. For the limit that’s right for you, you’ll need to know the trailer’s actual cash value. The insurance company will only pay out the value of the trailer in the event of a total loss, not the policy maximum. 

Over-insuring a trailer has no benefit, but underinsuring can lead to additional out-of-pocket expenses if the damage is greater than the policy limits.