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Everything a Beginner Should Know about a Trailer Interchange Coverage 

A trucking company will need trailer interchange coverage to pull non-owned trailers under the trailer interchange agreement. The interchange agreements usually specify that trucking companies will be financially responsible for the damages to the non-owned equipment when it is in their possession. However, regular physical insurance coverage often covers damage to self-owned tractors and trailers. Therefore, trailer interchange insurance is the best option for trucking companies that do not own the trailers. This article explains everything a new trucking company should know about trailer interchange coverage. 

What is a Trailer Interchange Coverage?

Trailer insurance coverage, or trailer interchange insurance, protects trucking companies financially from costs incurred because of wrecking or damaging someone else’s rental trailers. This coverage plan covers the trucking business and owner when unpredictable, unforeseen expenses arise. 

How Does Trailer Interchange Coverage Work?

Also known as garage liability or rental reimbursement coverage, trailer interchange coverage is commercial automobile insurance covering expenses arising from a rental trailer accident. 

This insurance is specifically designed for trucking companies involved in regularly transporting trailers. It also covers the trucking business against the costs of lost, stolen, or damaged trailers while in transport. Since trailers are costly to buy and repair when damaged, they are an expensive asset for the insured. Trailer interchange coverage covers borrowed trailers or the ones exchanged by the business. 

While selecting a policy, trucking business owners must choose the following:

  • A Deductible: The amount the owner will pay out of his pocket to cover trailer repairs or replacement. 
  • A Policy Limit: The maximum coverage amount that an insurer needs to pay in case of a trailer accident. 

Who Needs Trailer Interchange Coverage?

Trailer interchange coverage is crucial for trucking businesses or companies owning a truck fleet if they pull non-owned trailers under a trailer interchange agreement. 

How Much Trailer Interchange Coverage Do a Company Need?

The trailer interchange coverage a trucking company needs depends on multiple factors. All these policies are not treated equally, and tricking businesses are affected by different factors. For instance, the value of the non-owned trailers is the most significant factor. Another crucial factor is what non-owned trailers are being used. 

What is Covered by a Trailer Interchange Coverage Policy?

The trailer interchange coverage policy is known to protect against any and all liabilities arising when a trailer is rented, leased, or borrowed. This policy is specifically designed to cover unforeseen circumstances related to non-owned trailers. In addition, it can protect the trucking business from a loss of income, physical loss, or potential liability. 

The trailer interchange coverage policy covers the following costs:

  • Physical damage
  • Damage from accidents
  • Replacement costs
  • Costs from theft or vandalism


Trucking companies might be tempted to settle for the cheapest plan when considering having trailer interchange insurance. But choosing such a plan will leave the company vulnerable and susceptible to financial loss in the event of a non-owned trailer accident or severe damage. Instead, they should look for a reputable insurance company that provides the best interchange coverage policy at affordable premiums.