Are you wondering what trailer interchange insurance is and what it covers? And are you wondering if your business needs it? This blog post will help you learn more about this insurance and why it is so important if you drive a trailer owned by someone else.
Do you often use or transport trailers that belong to another person? If so, you might not realize that your liability policy will not provide coverage for physical damage to the trailer while you are driving it. If there is an accident, then you will be responsible for damage to the trailer — unless you have trailer interchange insurance.
What Is Trailer Interchange Insurance?
Trailer interchange insurance provides physical damage coverage for non-owned trailers. It protects you if the trailer is damaged by explosion, collision, fire, vandalism or theft. Trailer interchange insurance can also provide coverage if the load is damaged, as well.
Do You Need Trailer Interchange Coverage?
Do you drive someone’s trailer to haul goods? Are you a leased operator, intermodal trucker, or an independent operator using a trailer interchange agreement? If so, then you need trailer interchange coverage — unless you want to pay for damages out of your own pocket. Typically the truck driver who happens to have possession of the trailer is responsible for paying for any damages while they have the trailer. That is because the trailer interchange agreement typically makes the trucker hauling the trailer responsible for damages.
Scenarios when you might not need this insurance:
If the trucking company that owns the trailer has insurance that covers their trailer while someone else is driving it, then you might not need this insurance. Most do not have this coverage. It is important not to get this coverage confused with auto liability insurance. The trucking company will have liability insurance. It is required by law. However, this insurance only covers damage to other people’s property. It will not pay for damages to the trailer. You must have trailer interchange insurance for that.
What Does Trailer Interchange Insurance Cover?
Trailer interchange insurance provides coverage if you are in an accident. This insurance also covers damage that takes place during the loading and unloading process. Natural disasters can also cause damage to a trailer. Fortunately, this insurance provides coverage if your trailer is damaged in a natural disaster.
How Much Does Trailer Interchange Insurance Cost?
The cost of trailer interchange insurance can vary greatly. Some of the factors that determine rates include:
- Your driving record
- The value of the trailer
- The geographic area
- Your state requirements
- Your level of experience
- Deductible and limit amounts
- Whether or not you pay the policy upfront
What Is The Best Way To Find Trailer Interchange Insurance?
There are many trailer interchange policies out there. The best way to buy trailer insurance is to shop around and compare multiple quotes. This will help you get a policy that meets your coverage needs and is also low-cost. Trailer interchange insurance policies can be complicated. Let us help you compare quotes by simply filling out this online form or giving us a call.