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Trailer Interchange Insurance: an Essential Insurance for Owner Operators

Trailer interchange insurance protects your contracted trailer in the case of physical damage. If you are carrying a load for a contractor and the trailer belonging to the contractor becomes damaged, your company won’t be on the hook for the damages.

Many owner-operators fail to secure this insurance, erroneously believing that their umbrella truck insurance will cover this damage. Getting this additional insurance ensures that your company won’t be on the hook for expensive repairs or the cost of replacing a damaged trailer.


What is Trailer Interchange Coverage?

Trailer interchange coverage is for truckers who have trailer interchange agreements with other companies. If you are transporting goods and a trailer from another company, you need to ensure both the goods and the trailer. This differs from traditional non-interchange insurance that covers you when you arrive empty and simply transports the goods without the trailer.

Trailer interchange coverage will cover fire, physical damage, and theft. If any damages occur while you are pulling a trailer you don’t own, you’re responsible for the costs if you don’t have trailer insurance and a trailer interchange agreement in place. This insurance is an extra layer of protection for your company.

Exceptions and Restrictions

When you purchase a trailer interchange policy, you will be required to select both a coverage amount and a deductible. Some owners choose a higher deductible to keep monthly costs low, understanding that they will need to pay more out of pocket in the case of an incident.

Do I Need Trailer Interchange or Non-Owned Trailer Coverage?

The perfect example of when a company would need this insurance is damage that occurs in transit. Say you’re hauling a load of pool chemicals cross country and you pull into a truck stop to refuel. You stop inside the store for a few minutes and come back to find that your truck, the trailer, and all of the goods have been stolen.

Your truck’s insurance policy will cover your cab, while your comprehensive and liability policies will likely cover the transported goods. The trailer interchange policy will then cover the cost of the lost trailer.

If you had a coverage limit of $20,000 with a $1,000 deductible and the trailer was worth $50,000, you would pay $1,000 for the deductible and $30,000 for the trailer, for example. It is important to note that trailer interchange insurance is not available in the state of Virginia.

Trailer Interchange Insurance an Essential Insurance for Owner Operators

How Much is Trailer interchange insurance?

The cost of trailer interchange insurance varies by a number of factors but can cost between $150 and $800 annually. The insurance company will review your claims history, driving record, intended usage, location, and equipment value to determine a final price for your insurance policy.

If you’ve ever asked the question, “How much is trailer insurance?” you’re not alone. Many drivers are surprised at how wildly prices can differ for this much-needed coverage.

What is trailer interchange coverage? In short, it protects trailers that you don’t own. It provides you with the funds you need to replace a trailer if it is damaged or stolen. If your company doesn’t have this insurance, don’t delay. Get your coverage and drive with the peace of mind that your company is protected.

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