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When Is Trailer Interchange Needed?

When Is Trailer Interchange Needed?

Truckers planning to enter a trailer interchange agreement cannot skimp on trailer interchange insurance. After all, cargo and primary liability coverage do not cover non-owned trucks. Therefore, not having trailer interchange insurance leaves several coverage gaps that will make you pay for repairs and damages out of pocket.

Trailer Interchange Insurance Example

Let’s say that your trucker is hauling a non-owned trailer interstate. Furthermore, a traffic accident causes a chain of collisions between cars, SUVs, and trucks. Your trucker was unfortunate enough to get involved in the accident.

Even if you have sufficient property, cargo, commercial trucking, and general liability insurance, these policies will not pay for vehicular repairs since the trucker was driving a non-owned vehicle. As a result, you’ll have to pay out of pocket.

However, let’s say you had trailer interchange insurance. If the hauled pickup or truck is under a trailer interchange agreement and has sufficient coverage limits, you are eligible for repairs.

The FMCSA does not mandate trailer interchange limits, although most policies average around $20,000 to $30,000. Of course, the actual coverage depends on your specific trucking needs. Generally, high-value non-owned pickups and tractors would need higher coverage limits.

Consider consulting your motor carrier first. Ensure that your trailer interchange policy has enough coverage to compensate for any inconsistencies in the policies they provide.  

Are you having trouble deciding how much insurance to get for your cargo transportation brand? Assured Standard can help! Check out our brief piece explaining the insurance coverage that cargo transportation service providers need.

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