Trailer Interchange Coverage Explained: When You Need It and What It Costs
By iAgency
Trailer interchange covers physical damage to a trailer you are pulling that you do not own, when you have possession of it under a written interchange agreement. If you pull other carriers' or shippers' trailers, this is not optional coverage.
Why your other policies will not respond
Your physical damage coverage applies to units you own and have scheduled on the policy. A trailer you do not own is not scheduled, so there is nothing for the policy to respond to. Your auto liability covers injury and property damage you cause to others, but it typically excludes property in your care, custody, and control — which is exactly what a trailer under your possession is.
Interchange versus non-owned trailer coverage
Trailer interchange requires a written interchange agreement to be in force. It is the standard for drayage, intermodal, and carrier-to-carrier interchange.
Non-owned trailer coverage responds when you pull a trailer you do not own without a formal interchange agreement — for example, a trailer borrowed from another carrier informally.
The two are priced differently and are not interchangeable. Buying the wrong one leaves the gap open.
Typical limits
Limits generally track the replacement value of the trailers you pull, commonly $20,000 to $50,000 per trailer for standard dry vans, higher for reefers and specialized equipment. Deductibles typically run $1,000 to $2,500.
Who needs it
If you run intermodal or port drayage, you need it — the interchange agreement you sign to take a container chassis makes you responsible. If you interchange trailers with other carriers, you need it. If you only pull your own equipment, you do not.
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