Trailer interchange

Trailer interchange insurance

When you pull another company's trailer under a written interchange agreement, you are usually responsible for damage to it. Trailer interchange covers that trailer while it is in your possession.

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Semi trailer parked on the shoulder of a country road — Photo: John Phelan, CC BY 4.0, via Wikimedia Commons. Cropped.

When you need it

Intermodal carriers pulling steamship line or railroad chassis and containers
Carriers swapping trailers with another carrier under an interchange agreement
Power-only carriers pulling shipper-owned trailers

Request a quote

There is no separate application for this class, so start with the short inland marine quote request. Someone will follow up with any underwriting questions specific to your risk. Insurance agents can also request an appointment.

Request a quote Apply for motor truck cargo

Interchange or non-owned trailer

Trailer interchange applies when there is a written interchange agreement. Non-owned trailer physical damage applies when you pull someone else's trailer without one. Many power-only operations need the non-owned form, so tell the underwriter how you get the trailers.

Typical trailer losses

The claims are the same ones you would see on your own trailers. The difference is that the owner sends you the bill, often with a repair invoice you did not get to review.

Collision and jackknife damage on the road
Upset and rollover, often with damage to the floor and roof
Backing into docks, poles and other trailers in tight yards
Theft of the trailer from a drop yard or customer lot
Fire, including tire and brake fires
Wind and hail damage while a trailer sits dropped

How the coverage is written

Collision and other than collision

Trailer interchange is usually written to cover collision and other-than-collision losses such as fire, theft and wind, much like physical damage on your own units. Some policies offer specified perils only, which is narrower. Ask which one you have.

Limit per trailer

The limit should be at least the value of the most expensive trailer you might pull. A new reefer trailer can be worth far more than an older dry van or a chassis, so tell the underwriter the types you take.

Loss of use

Many interchange agreements make you pay the owner for the days its trailer is out of service. Some policies include loss of use or offer it as a sublimit, and some leave it out. Read the agreement and ask whether the policy matches it.

Gaps to ask about

Cargo inside the trailer, which needs motor truck cargo
Damage you cause to other people's property, which falls under auto liability
Wear and tear, tire damage alone and mechanical breakdown, which are commonly excluded
Trailers held past the agreement's return date or used outside its terms
Deductibles in the agreement that differ from the policy deductible

How to get a trailer interchange quote

Collect copies of the interchange agreements you have signed, including any addendums.
List who you interchange with: railroads, steamship lines, other carriers or shippers.
Note the most non-owned trailers you have in your possession at one time.
List the trailer types you pull, such as dry van, reefer, flatbed or chassis, and the highest value of each.
Describe where trailers are dropped and how those yards are secured.
Send your DOT and MC numbers, current auto declarations and three to five years of loss runs.

Common questions

Does my auto liability cover a trailer I'm pulling?

Auto liability covers damage you do to others while pulling the trailer. Damage to the trailer itself is physical damage, and a non-owned trailer needs interchange or non-owned trailer coverage.

Does trailer interchange cover the freight inside?

No. Trailer interchange covers the trailer itself. The load needs motor truck cargo coverage, which is why the two are often quoted together.

Is trailer interchange part of my auto policy?

It is often added to a commercial auto policy as an endorsement, and some programs write it alongside cargo. Either way, check that the limit and deductible are shown on your declarations.

What do intermodal agreements require?

Intermodal interchange agreements often set minimum physical damage and liability requirements for chassis and containers. Requirements can change, so check the current agreement and any equipment provider addendum before you bind.

What if the trailer owner bills me for old damage?

Inspect the trailer at pickup and record existing damage on the interchange receipt, with photos if you can. Without that record, it can be hard to show the damage was already there.

Ready for a quote?

A short request, about five minutes.