Trailer interchange insurance covers non-owned trailers, but non-owned trailer insurance and trailer interchange policies do not offer the same coverage. Non-owned trailer insurance covers non-owned trailers attached to an insured power unit. On the other hand, trailer interchange insurance policies cover all non-owned trailers in the trucker’s or lessor’s possession.
While trailer interchange is relatively more popular, truckers shouldn’t blindly overlook non-owned trailer insurance policies. To help you reach an informed decision, weigh the pros and cons and see which coverage aligns with your trucking needs.
This policy covers all non-owned pickups and tractors under the insured’s possession. Whether the truck in question sustained damage while attached to a power unit, you can still file a claim.
The only prerequisite is that trailer interchange insurance requires a formal agreement. So it is important to explicitly state which vehicles fall under the insured’s jurisdiction under your trailer interchange contract.
Non-owned trailer insurance offers more limited coverage. You can only file a claim on damages sustained while the insured vehicle was attached to a covered power unit. That is why this guideline creates a coverage gap.
However, the most significant advantage of a non-owned trailer insurance policy is that it provides coverage even without a formal interchange agreement.
Consult your business partners and prospective motor carrier when deciding between trailer interchange and non-owned interchange coverage. As we have discussed, they have their pros and cons. Trailer interchange offers extensive benefits but requires an interchange agreement, while the latter covers all non-own trailers attached to a power unit — even in the absence of a formal contract.
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Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.