Trailer Interchange Coverage

It is common practice in the commercial truck industry for drivers to exchange trailers and complete each other’s hauls.  This is done to cut fuel costs and complete hauls in a more timely and efficient manner.

As an example, you may be hauling goods to one place and then heading back to your company.  Once you have dropped off your cargo, another driver may find it advantageous for you to carry their trailer back with you and complete their haul along the way.

Trailer Interchange Agreements

This practice is referred to as trailer interchange and trailer interchange coverage is trucking insurance designed to protect assets in this situation.  When trailers are interchanged, the two parties involved sign a trailer interchange agreement.  This is a written contract between the two truck drivers or motor carriers that allows the loan of the trailer from one to the other.

The problem with these situations is that once the trailer is handed off to the other driver, it is no longer covered under its original carrier’s insurance.  Physical damage and liability insurance will only cover the trailer while it is in the possession of the policyholder.  Likewise, your trucking insurance will not cover that you now possess after the exchange.

Truck Trailer Insurance

In order to keep your trailer covered when it is not your custody, you need to purchase trailer interchange coverage.  This type of truck trailer insurance is designed specifically to cover trailers in the event of trailer interchange agreements.

Trailer interchange insurance will provide coverage for trailers that you do not own that are currently in your care.  This coverage includes physical damage insurance to cover the cost of damages to the trailer while in transit. 

More Suggested Trailer Insurance Reading:
For more commercial insurance resources related to special trailer insurance, visit some of our related articles such as Trailer Interchange Coverage and Truck Trailer Insurance.