Trailer Interchange Coverage

Published 12/14/2022; Updated 1/30/23

To pull non-owned trailers under a trailer interchange agreement, most trucking companies will need trailer interchange coverage.

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Most interchange agreements dictate that trucking companies are responsible for any damage to non-owned equipment in their possession and unfortunately, regular physical damage insurance only covers owned tractors and trailers.

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While often confused with non-owned trailer coverage, the key difference is that trailer interchange coverage protects trucking companies the entire time a trailer is in their possession – unlike non-owned trailer coverage, which only kicks in when a trailer is attached to the truck.

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Our guide below covers everything you need to know about trailer interchange insurance, including how much it costs, what it covers, and more.

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For those just looking for a quick answer, here are our top picks.

Progressive

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Best Overall

biBERK

Call: (855) 852-8232

Get Quote

Recommended for new trucking companies

The Hartford

Call: (855) 852-8232

Get Quote

Recommended for larger fleets

By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.

About the author

Kyle Fretwell has worked as a researcher and data-journalist for over a decade. His work has appeared in publications such as Bloomberg, Fox Business, MSN, USA Today, CNBC, and the Houston Chronicle.

He now manages TruckInfo.net's content team and is a regular fixture at the Mid-America Trucking Show in Louisville.

Table of Contents

What is it?

Interchange Agreement

How does it work?

Who needs it?

Interchange vs Non-owned Coverage

What is trailer interchange coverage?

Trailer interchange coverage provides physical damage insurance to third-party trailers in a motor carrier's possession while under a trailer interchange agreement.

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Coverage typically includes but is not limited to:

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Collisions / Rolls
Theft
Fire
Vandalism
Natural
Falling Objects
Natural Events

A trailer interchange agreement is a prerequisite to getting trailer interchange insurance. In case of a claim, if you can’t furnish the trailer interchange agreement, it will be denied.

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Is trailer interchange an endorsement?

Yes, trailer interchange coverage is available as an endorsement to most commercial truck insurance policies and does not need to be purchased as a separate policy.

What is a trailer interchange agreement?

A trailer interchange agreement is a written contract that assigns the terms and responsibilities between the owner of the trailer and the trucking company in the possession of the equipment.

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What does a trailer Interchange agreement cover?

The trailer interchange agreement covers the entire time the trailer is in the trucker’s possession whether or not it is attached to the truck.

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Most agreements outline details including the duration of the trip, responsibilities of both parties (the party transporting the goods and the one receiving the goods), expectations about maintenance, dispute resolution process, and the compensation structure.

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Here is a sample trailer interchange agreement template.

How does trailer interchange coverage work?

As mentioned above, trailer interchange coverage protects a trucking company while they are in possession of a trailer they don’t own. However, the trailer must be exchanged under a written trailer interchange agreement for the insurance to be valid.

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While selecting a policy, you must select:

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A deductible – the amount you will pay out of pocket to cover the repairs or replacement
A policy limit – the maximum coverage amount the insurance company will pay in the event of an accident

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Example

If a trucking company selects a policy with a $2,000 deductible and a $30,000 limit and totals the trailer in an accident, the trucking company will be responsible for paying the first $2,000 to replace the trailer. The insurance company will then pay the difference between the deductible and the policy limit. In this case, $28,000.

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If the trailer is worth more than $30,000, the policy will not be able to replace the trailer and the trucking company will be responsible for the additional expenses.

Who needs trailer interchange coverage?

Any trucking company that takes possession of a non-owned trailer while under a trailer interchange agreement will need trailer interchange coverage.

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While a wide range of trucking companies may utilize interchange agreements, a few common examples include Amazon Relay drivers and anyone under a UIIA agreement will need trailer interchange coverage. Power-only truckers also frequently require trailer interchange insurance.

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Some motor carriers also require their owner operators to purchase trailer interchange coverage if they are pulling non-owned trailers under an interchange agreement.

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Although other vehicles may be able to pull a trailer, coverage is typically only offered to tractors and pickup trucks.

Trailer Interchange Coverage vs Non-owned Trailer Insurance

When a trucker doesn't have a trailer interchange agreement, they need non-owned trailer insurance. However, this coverage is applicable only when the trailer is attached to their truck.

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In comparison, trailer interchange coverage provides protection the entire time the trailer is in the possession of the trucking company, whether the trailer is connected to the truck or not.

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Do you need trailer interchange and non-owned attached trailer insurance?

Both policies may be required depending on a trucking company’s client base. For example, some brokers will require non-owned coverage and do not operate with a trailer interchange agreement. If a trucking company works with such a broker and then signs a contract with a shipper that uses a trailer interchange agreement, they will need both types of coverage.

What is a trailer interchange limit?

A trailer interchange limit is the maximum amount the insurance company will pay out from a claim against a trailer.

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The typical policy limit for trailer interchange coverage is $20,000-$30,000 with a $1,000 deductible.

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Common Exclusions

Most interchange insurance policies will not cover the following events:

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A trailer interchange agreement is not in place
The trailer is no longer in the possession of the trucking company
Intentional damage to the trailer by the trucking company

Trailer Interchange Insurance Cost

Trailer interchange insurance can cost anywhere from $100 to $1,500 a year in premiums depending on the policy.

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The following factors can all affect your premium:

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Policy limit
Deductible
Driving record
Claims history
Location

Finding Cheap Coverage

While the trailer interchange agreement may dictate the required policy limit, it’s a good idea to opt for the lowest policy limit allowed that still covers the cash value of any trailers covered under the agreement.

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Insurance providers will only pay the fair market value of a trailer so a policy that over-insures the trailer will provide no benefit and result in higher premiums.

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In addition to selecting the right policy limit, trucking companies can lower premiums by opting for higher deductibles and getting quotes from multiple insurance providers.

Top Commercial Truck Insurance Companies

‍

Progressive

Call an Agent Get Quote

Best Overall

biBERK

Call: (855) 852-8232

Get Quote

Recommended for new trucking companies

The Hartford

Call: (855) 852-8232

Get Quote

Recommended for larger fleets

By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.

Trailer Interchange FAQs

If I’m going to transport an empty trailer do I need trailer interchange insurance?

Yes, trailer interchange insurance is required even if transporting an empty trailer.

What does interchange mean in transportation or logistics?

In transportation or logistics, interchange refers to the transfer of equipment between two parties. One common example would be a shipping container that is transferred from a ship to a train and finally to a truck. The parties that do not own the trailer would need interchange insurance in case the container is damaged while in their possession.

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Is trailer interchange the same as cargo insurance?

Trailer interchange coverage is not the same as cargo insurance. While trailer interchange coverage protects carriers if a non-owned trailer is damaged while in their possession, cargo insurance covers the cargo they are transporting. Motor carriers will need both types of coverage.

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What are UIIA trailer interchange insurance requirements?

While UIIA’s minimum requirement for interchange insurance is $15,000, most agreements require $20,000-$25,000 in coverage.

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Tiger Cool Express requires a $65,000 policy limit, which is the highest requirement among equipment providers.

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Does Amazon require trailer interchange insurance?

Yes, Amazon Relay requires a trailer interchange insurance policy with at least a $50,000 policy limit.

Trending Guides

Trailer Interchange Coverage

What is trailer interchange coverage?

Is trailer interchange an endorsement?

What is a trailer interchange agreement?

What does a trailer Interchange agreement cover?

How does trailer interchange coverage work?

Example

Who needs trailer interchange coverage?

Trailer Interchange Coverage vs Non-owned Trailer Insurance

Do you need trailer interchange and non-owned attached trailer insurance?

What is a trailer interchange limit?

Common Exclusions

Trailer Interchange Insurance Cost

Finding Cheap Coverage

Top Commercial Truck Insurance Companies

Trailer Interchange FAQs

If I’m going to transport an empty trailer do I need trailer interchange insurance?

What does interchange mean in transportation or logistics?

Is trailer interchange the same as cargo insurance?

What are UIIA trailer interchange insurance requirements?

Does Amazon require trailer interchange insurance?

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