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Why is trailer interchange insurance necessary?
Why do truckers need trailer interchange insurance? They already carry liability insurance and cargo insurance, along with several more policies. So what else do they have to insure?
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“This is very true; truckers pay for more than their fair share of different types of insurance, and trailer interchange insurance is another one that is necessary.
Trailer interchange insurance is a type of
liability coverage
that’s used when a trailer interchange agreement exists between two or more truckers or delivery companies. A trailer interchange agreement is when a shipment of goods or merchandise is being transferred from one trucker to another in order to complete the delivery.When this happens, truckers end up hauling trailers they don’t own. The trucker’s commercial insurance policy will provide liability and physical damage to the truck and trailer they own and coverage for what they tow, but there isn’t coverage for a trailer they don’t own.
It would be similar to trying to insurance a car that you don’t own; you can’t because it isn’t yours.
Due to the complex logistics of the shipping industry, truckers need to trade off trailers all the time. Trailer interchange insurance allows them to select a set limit of insurance and a deductible. So if the trailer gets stolen or damaged, they would be reimbursed the cost of the trailer minus the deductible.”
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- Gregory R.
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