Trailer Interchange Coverage Agreement, Cost & Quotes From $11

Trucking companies must hold various insurance policies to bid for shipment jobs. One good example is trailer interchange insurance. In this article, know what the coverage is and how much it costs. We’ll also explain what a trailer interchange agreement is and provide free blank trailer interchange agreement forms.

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What is a Trailer Interchange Agreement?

Let’s discuss what is a trailer interchange agreement before talking about trailer interchange insurance definition. A trailer interchange or a trucking interchange agreement is a binding contract between two truckers that makes one liable for the damages of a rented or borrowed trailer.

Note that depending on the nature of trucking or hauling, trailer interchange agreements come in different types. For instance we have:

  • In power-only trucking, we have what’s called a power only trailer interchange agreement

  • In trucking Amazon loads, we have what’s called an amazon trailer interchange agreement or amazon relay trailer interchange agreement


Typically, when a trailer interchange agreement is in place, the heavy haulers involved in the consignment use trailers they don’t own. 


The companies’ commercial trailer insurance plans offer liability and physical damage coverage to the trailers they own and what they transport. Still, the protection doesn’t extend to the trailers they don’t own. It’s similar to car insurance; you can’t use your auto coverage to cover a car you just borrowed. This is why a basic trailer interchange agreement insurance is handy. 


By the way, how long do trailer interchange agreements last? The timeline of these agreements varies widely because each hauling company involved has specific needs and requirements. It means there’s no generic trailer interchange agreement with a standard timeframe.

What is Trailer Interchange Coverage?

If you’re wondering: what is trailer interchange insurance? Trailer interchange insurance meaning is easily expressed as an insurance policy providing coverage to trailers being used under a trailer-interchange agreement. Note that trailer interchange coverage is a part of trucking insurance products sometimes. 


Trailer interchange insurance is important. Note that the Federal Motor Carrier Safety Administration requires specific truckers to get a trailer interchange endorsement in their commercial insurance. 


So what does the policy cover? Trailer interchange insurance coverage applies to:

  • Theft

  • Fire

  • Vandalism

  • Explosion

  • Collision  

Businesses That Need Trailer Interchange Insurance

The following are examples of businesses that find trailer interchange insurance very useful:

Are Third-Party Bodily Injuries or Property Damage Covered by Trailer Interchange Insurance?

Trailer interchange insurance doesn’t cover third-party bodily injuries or property damage resulting from the commercial or personal use of a borrowed or leased trailer. If you want to get covered against the cost of accidents caused by your power unit while a borrowed or leased trailer is attached to it, insurance options are:

  • Non-trucking liability insurance

  • Unladen insurance

Non-trucking liability insurance takes care of the personal injuries or property damage the leased or borrowed trailer caused while it’s being used for personal purposes. This policy works whether or not it is attached.

Unladen insurance takes care of personal injuries or property damage while a leased or borrowed empty trailer is pulled. Coverage applies even if the accident happened while the trailer is being used for personal purposes or commercial purposes. 

How Much Trailer Interchange Insurance Do You Need?

The amount of trailer interchange insurance you need to get depends on the type of trailers you’re usually leasing or borrowing. But note that the policy limit of trailer interchange insurance is $20,000 or $30,000. 

How Does Trailer Interchange Insurance Pay?

If you choose a limit of $20,000 with a $1,000 deductible, your insurer will expect you to return $1,000 of what you received. This means you’ll only have $19,000 insurance money left and you’ll have to pay the excess if the amount you received isn’t enough. If it’s valued under $20,000, your insurance policy will cover the full costs once you’ve cleared the deductible. 

Trailer Interchange Insurance Amount for Enclosed Trailers

A dual axle repair for enclosed trailers costs $3,000 – $15,000. And so,  for this kind of trailer, you need to get $20,000 trailer interchange coverage. 

Trailer Interchange Insurance Amount for Flatbed Trailers 

Repairing the deck of a flatbed trailer costs $13,000 – $20,000 provided that class A materials are used. And so, if you’re leasing or borrowing flatbed trailers, it’s good to get flatbed insurance having a $30,000 limit. 

Trailer Interchange Insurance Amount for Refrigerated Trailers

Provided that the axle and the refrigeration system got damaged, the cost of repairing a refrigerated trailer can scale between $14,522 – $21, 363. If you’re using this kind of trailer under a trailer interchange agreement, it’s best to get $30,000 in coverage. 

Trailer Interchange Insurance Amount for Dump Trailers 

The cost of repairing a dump trailer is $3,000 – $10,000. The best way to cover these is through a trailer interchange insurance having custom limits. By doing so, you can get coverage amounting to $12,000 – $18,000 only. 

How Does Trailer Interchange Insurance and Non Owned Trailer Coverage Differ?

You might be wondering: Isn’t trailer interchange coverage the same as non-owned trailer insurance? Why would a trucker carry the latter when they already have the former?


Non-owned trailer coverage only provides protection to a leased or borrowed trailer attached to a power unit. For example, if you’ve borrowed a flatbed trailer from someone and had it stored in the terminal or garage, then it got damaged for some reason, a non-owned trailer can’t provide protection. 


In other words, in most cases, non-owned trailer coverage can only shoulder costs if the trailer got damaged while it’s being used. 


Trailer interchange insurance on the other hand provides coverage to the trailer whether it’s attached or not attached to a power unit. Following the example above, the borrowed flatbed trailer can be covered if you’ve had trailer interchange insurance instead of non-trucking liability coverage. 

Which Offers the Best Protection Trailer Interchange Insurance or Non Owned Trailer Coverage?

Trailer interchange insurance offers more comprehensive protection than non-owned trailer coverage because it can cover an attached or unattached trailer. However, this doesn’t mean that trailer interchange is way better as there’s a hitch. 

Trailer interchange coverage applies to trailers named in the trailer interchange agreement. Leased or borrowed trailers that were not scheduled won’t benefit from this insurance policy.

Non-owned trailer coverage, on the other hand, covers all leased or borrowed trailers in your possession. In other words, this policy insures borrowed trailers scheduled and not scheduled in the trailer interchange agreement. 

Businesses that use trailers decide to get trailer interchange insurance and non-owned trailer coverage. By having the two, there’s protection no matter how troublesome the situation might be.

Does Trailer Interchange Insurance Only Cover Damages Arising from the Commercial Use of a Trailer?

Trailer interchange insurance covers damages that were incurred when:

  • The trailer is being used to deliver products, materials, or goods

  • The trailer is being used by the driver or the owner-operator for personal errands

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Trailer Interchange Insurance Cost

The average cost of a trailer interchange insurance is – in the low spectrum – $110 per month or $1,320 a year.


Several factors determine trailer interchange coverage cost. They include:

  • Driving history and records

  • Location 

  • History of property loss

  • Trailer condition

  • Nature of trucking business

Companies each charge differently for trailer interchange insurance. The table below proves this point by showing the pricing of the best trailer interchange insurance companies:

Cost per Month  Cost per Year Best for
CoverWallet  $98 $1,176 Trailer interchange insurance quotes comparison online
Progressive $110 $1,320 Trailer interchange for tractor-trailer and pick-up owner-operators

How to Save on Trailer Interchange Insurance Premiums?

Always ask your carrier if you can get discounts. Some carriers offering trailer interchange insurance offer discounts for safe driving, possession of a commercial driver’s license, and having no DUI records.

The second way is to always get high deductibles. Having high deductibles might seem a drawback. However, this isn’t the case as doing so will help you get a 5% to 7% decrease in premium costs. This works best if you’re a high-risk customer. 

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Best Trailer Interchange Insurance Companies

CoverWallet Trailer Interchange Insurance


  • Compare trailer interchange insurance quotes online

  • Get instant online proof of insurance


  • Not a company but a broker selling the quotes of its partners. 

CoverWallet allows you to compare the trailer interchange insurance quotes of different companies. At the same time,  the company also allows you to purchase a quote and get covered in an instant. The best thing about buying insurance from this company is that you can easily pay online and get online proof of trailer interchange coverage. 

Best for: Trailer interchange insurance quotes comparison online

Average cost: $98

Our rating: 10/10

Progressive Trailer Interchange Insurance


  • Helps with state filings

  • A carrier that specializes in trucking insurance products

  • Allows you to choose the limits of your policy


  • Trailer interchange is only available for tractor-trailer or commercial pick-up owner-operators

  • Trailer interchange coverage is not available in Virginia

Progressive’s trailer interchange can be added to its tractor-trailer insurance and commercial pick-up truck insurance. The company also offers other equally useful policies such as bobtail insurance and non-trucking liability insurance.


Best for: Trailer interchange for tractor-trailer and pick-up owner-operators

Average cost:  $110

Our rating: 9/10

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Trailer Interchange Coverage Form


The primary function of a trailer interchange agreement is to offer each trucking company peace of mind during the freight carriage. Once they sign the contract, each trucker will have an understanding of their liabilities so long as the agreement is valid.


Most trucking companies have a legal department that drafts a trailer interchange agreement template. Some also seek the help of lawyers. But note that if neither of the two is an option for you, there are many blank trailer interchange agreement forms you can find online. Download these free trailer interchange agreement forms we compiled. 



By the way, in case you plan to make your own trailer interchange agreement form, note that it must have these sections:  

  • Identity, role, and contact information of the truckers involved

  • The general terms of the agreement 

    • Contract duration

    • The type of equipment in use

    • Destination of in-transit load

    • The purpose of the trailer

  • When and how should the trailer be returned to the owner?

  • Requirements for borrowing the trailer (licenses, certifications, insurance, etc.)

  • Duties and responsibilities of the trailer owner

  • The limits of liability for each party involved in the agreement 

  • Under what situation(s) is the trailer owner responsible for damages?

  • Under what situation(s) is each trucker using the trailer liable for damages?

  • Who’s responsible for the maintenance of each trailer?

  • Who ensures motoring public safety during each interchange?  

Compare Trailer Interchange Insurance Quotes Online

Compare quotes and find the best coverage at the cheapest rates. To compare trailer interchange insurance quotes online, click the “Get Quotes” button on top of this page and get the latest rates from top companies across the US. 

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