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.
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.
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:
The following are examples of businesses that find trailer interchange insurance very useful:
Hot shot truckers
Debris removal businesses
Garbage collecting businesses
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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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
History of property loss
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 |
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.
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
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
Get all the best quotes from leading providers in a click of a button!
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.
PDF Filler trailer interchange agreement blank form
NPTC blank trailer interchange agreement example
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
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 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.
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
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