Difference Between Trailer Interchange And Physical Damage

Difference Between Trailer Interchange And Physical Damage
by Arthur Williamson

Depending on your policy, physical damage insurance covers damages resulting from natural occurrences — like theft, vandalism, and collision. Additionally, it encompasses multiple coverages. On the other hand, trailer interchange insurance is a type of physical damage coverage that protects non-owned trailers.

The difference between the two is that trailer interchange covers non-owner trailers, while physical damage covers damages from natural occurrences on an owned trailer. Understanding the difference between both can ensure you have enough coverage for your business. 

Trailer Interchange vs. Physical Damage In Trucking Insurance

Trailer Interchange Insurance

Trailer interchange insurance covers non-owned trailers under the possession of a leasing owner-operator. Motor carriers often require their lessees to carry this policy. Unlike non-owned trailer insurance, trailer interchange insurance takes effect even if the covered truck was not attached to a power unit during the accident.

However, note that trailer interchange insurance requires a formal agreement. Unless you and your motor carrier have a formal contract explicitly detailing the specifics of your transaction, you cannot file a claim.

Physical Damage Insurance

Physical damage insurance serves as a collective term for the policies that cover tangible damage to your property. The specific implications vary on your policy. For instance, comprehensive insurance covers an array of non-collision accidents, while fire and theft insurance only covers two incidents.

Consult your fellow truckers and leasing motor carriers when mapping out your physical damage insurance policy, as you will likely need multiple policies. Road risks and hazards entail varying complications, and an extensive insurance policy protects you from financial loss during these incidents.

Are you stuck between trailer interchange and non-owned trailer coverage? Let Assured Standard give you more information! Read our piece explaining the difference between trailer interchange and non-owned trailer insurance for more details.

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