Trailer interchange insurance

Trailer interchange insurance is a form of commercial auto insurance that covers physical damage to non-owned trailers under a trailer interchange agreement. Freight carriers, like Schneider National and J.B.

Hunt, use trailer interchange agreements to swap loaded trailers without exchanging tractors, according to YourInsurance.info (Your Insurance Info). Coverage applies only when a written trailer interchange agreement exists between parties, as mandated by the FMCSA.

This insurance covers perils such as collision, fire, theft, explosion, and vandalism while the trailer is in the insured’s care. Trailer interchange insurance excludes coverage for cargo inside the trailer; motor truck cargo insurance covers those goods.

The minimum coverage limit commonly required by shippers and brokers is $20,000 to $30,000 per trailer, but higher-value trailers may require up to $50,000 or more. Premiums for this coverage average $500 to $1,200 annually per power unit based on risk factors including claims history and route geography.

Claims examples include a trailer damaged during docking at a warehouse or destroyed in an accident while attached to an insured tractor. Without trailer interchange insurance, companies risk out-of-pocket costs for repairs or replacement if they damage someone else’s trailer under their care.

Only specific insurers–such as Progressive Commercial and Great West Casualty–offer stand-alone trailer interchange policies nationwide.