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.
Are you having trouble settling the paperwork needed to lease onto a motor carrier? Assured Standard has you covered! Check out our comprehensive piece explaining everything you should know about leasing trucks to motor carriers.
Arthur started Assured Standard after seeing his sister struggle with finding insurance policies for her business. Thanks to his background in business administration, he knows exactly what small and big businesses need to keep operations running.