Trailer Interchange insurance provides Physical Damage insurance for trailers being pulled under a trailer interchange agreement. This is essentially Physical Damage insurance for non-owned trailers. This insurance protects you if the trailer is damaged by collision, fire, theft, explosion or vandalism.
Since the exchanged trailers are not owned by you, they require separate insurance coverage because they are not covered under your regular Physical Damage insurance.
Who needs trailer interchange insurance?
If you have a trailer interchange agreement, you need Trailer Interchange insurance to protect you while you're in possession of a container or trailer that you don't own.
A trailer interchange agreement is a contract that arranges to transfer a trailer from one trucker to another in order to complete a shipment. Typically, the trucker in possession of the trailer is responsible for paying any damages that are incurred while they have the trailer.
Limits, deductibles and other details
With Trailer Interchange insurance, you must select both a limit and a deductible. The limit is a single amount that describes how much your insurance company will pay if you use this coverage. The deductible is the amount that you agree to pay out of pocket to help with the repairs or replacement.
Trailer interchange coverage example
You're hauling an exchanged trailer and you pull off the highway to refuel. While you're inside grabbing a bite to eat, your truck is stolen.
Since you don't own the trailer you were hauling, your regular Comprehensive insurance or Property Damage insurance won't pay for the stolen trailer. Instead, your Trailer Interchange insurance would protect you.
If you selected a limit of $20,000 and a deductible of $1,000, you would pay the first $1,000 toward replacing the stolen trailer and your insurance would pay up to $20,000 toward the replacement.
If the trailer was worth more than $20,000, you would be responsible for paying the difference. If the trailer was less than $20,000, then your insurance would cover the full cost after your deductible.
Exceptions and restrictions
The trailer in question must be in the insured person's possession under a written trailer interchange agreement.
You also must purchase Liability insurance to be eligible for Trailer Interchange insurance.
Trailer Interchange insurance is currently only available for tractors and pickups. Other vehicle types are not currently eligible for Trailer Interchange insurance.
There must be at least one trailer, owned or not owned, listed for each tractor and/or pickup.
State specific details
Trailer Interchange insurance is not available in the state of Virginia.