Trailer Interchange Insurance: Who Needs It and Who Does Not

Edward Snaneh

The truck transportation of cargo represents a foundation in the area of logistics that is employed by almost any enterprise wanting to ship and receive things in the United States. This increased demand connected with goods transportation has influenced a group of large trucking and freight forwarder businesses using numerous different operators; smaller companies seeking to get off the ground with more local resources; as well as private owner-operators working on contractual agreements. When you are a trucking company or individual trucker looking to take advantage of the high demand in trucking business, it becomes vital to invest in learning about the protection in trailer interchange insurance.

What is Trailer Interchange Insurance?

Trailer Interchange is a physical damage insurance on trailers that a truck is hauling, or is under the control of that trucking company, and that is not owned or leased for the restricted use of the trucking company pulling it. The coverage does apply as comprehensive (theft, fire and more) and collision (overturn and colliding with an object) to a trailer pulled by a trucking company under an agreement (ie, non owned trailer.)

When looking to take advantage of this protection opportunity, a person should start with developing an understanding of what it protects. Most trucking and transportation organizations do not utilize only their own truck-tractors and trailers to haul goods from place to place. Instead these trucking companies use leased operators and their tractors trucks to move various trailers owned by other parties to ship goods from one city to another. With trailer interchange insurance you are investing in a coverage that will protect to a trailer owned by a third party in the bad case of an accident or if damage were to occur to the trailer.

Who Needs Trailer Interchange?

This coverage is vital for any establishment or individuals in the transportation or trucking industry as it will protect the interests of both the trucking/ transpiration company, as well as the clients who they generally do business with. Other third parties will demand to see a certificate of insurance with trailer interchange coverage pointed out on it, prior to them allowing you to pull their trailers or loads.

The value of the trailer, not the merchandise hauled or goods loaded in the trailer, will be the main determinants of the limits and the price of the coverage. The most standard amount of coverage for trailer interchange insurance in Chicago is $25,000, with a rate ranging between $600 to $1,000 annually, with a deductible of $1,000 per claim. If you end up hauling a more  costly  trailer, your client may ask you to boost that coverage. Your insurance representative may do that for you quickly with an endorsement to your contract.

Non Trucking, Owner Operators Do Not Need Trailer Interchange

Trailer interchange insurance generally comes with nearly all primary insurance contracts where MC filing is required. If that business seeking primary insurance does operate their own trailers as well as the leased ones, they need separate coverage to cover their own listed trailers, because trailer interchange does not offer coverage to owned trailer. Owner operators, or people who lease their own trucks to trucking companies do not have any need this insurance (their leasing companies will provide it to them when the owner operators are under dispatch.)
Having the exact insurance is always a highly encouraged expense for any business in any market. Sometimes it is a legal requirement! With the merits of quality trailer interchange insurance, a trucking business owner can feel guaranteed that their best interests are covered as they employ trucks and owner operators to transport the goods of their clients. Knowing how this type of protection functions, helps a business owner in determining the meaning connected with having or not having the proper type of this protection.


In the transportation industry, it is important that you not only transport goods safely but have the right protection to ensure security in the event of an accident or damage. With trailer interchange insurance, your business will be protecting the best interests of your clients, which will help bring them peace of mind. Find your best resource on trucking insurance and how it relates to the identification of this insurance by visiting  our blog.

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