Trailer Interchange Insurance

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When it comes to the trucking industry, it is common for drivers to transport or use trailers that belong to another party. What many truckers don’t realize is while their liability policy extends to the borrowed trailer, there is no coverage for physical damage. The trucker is fully responsible for physical damage to the trailer while it’s in their care. To fully protect yourself you need trailer interchange insurance.

What is Trailer Interchange Insurance?

Trailer interchange insurance is physical damage insurance for a non-owned trailer in your care. This coverage can be added to the business auto insurance policy or a trucker’s liability policy. An example of when a trailer falls into this category is when motor carriers trade or share trailers to cover scheduling needs. One carrier may have a trailer located in Georgia but needs to pick up freight in Montana. They can find a carrier with the opposite needs to fill the gap.

Do I Need Trailer Interchange Insurance?

Whenever you borrow or use somebody else’s trailer, you need full insurance protection. Even if you already have a trucker’s liability insurance policy in place, there is no physical damage included. Here are common scenarios where you need this insurance:

  • Trailer Interchange Agreements: This is a written agreement between a motor carrier and driver that requires the insurance.
  • Power Only Drivers: Sometimes shipping companies hire drivers to transport empty trailers and require the drive has trailer interchange insurance.
  • UIIA Members: The UIIA requires members to carry minimum limits on various insurance policies including trailer interchange insurance.

If you are transporting freight under a written agreement, you need to buy this insurance. Without it, you risk paying an expensive bill if damages occur during your use.

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What Does Trailer Interchange Insurance Cover?

Trailer interchange insurance covers trailers you use to haul or transport goods from one location to another. It pays expenses from damage incurred to the trailer in the following scenarios:

  • Loading the freight
  • Unloading the freight
  • Accidents
  • Accidental fires
  • Theft
  • Vandalism

In most cases, the company that owns the trailer requires you to purchase trailer interchange insurance before doing business with them.

How Do You Know it’s the Right Policy

  • You use somebody else’s trailer to haul goods
  • You have a written agreement with a motor carrier or shipping company
  • You don’t want to pay physical damage expenses out of pocket

What Does Trailer Interchange Insurance NOT cover?

  • Physical damage to a trailer that you own