The Coverage that Drives America: Understanding Trailer Interchange Coverage

Transportation logistics are the cornerstone of a booming economy and commercial trucking is one of the driving factors of the America we know and love today. The movement of these trailers often involves complex agreements and potential risks. Trailer interchange coverage offers crucial protection for businesses operating under trailer interchange agreements. At Rollo Insurance, we understand the complexities of commercial trucking and can help you secure the right coverage to safeguard your operations that keeps America’s economy moving.

What is Trailer Interchange Coverage?

Trailer interchange coverage is a specialized form of insurance that protects motor carriers when they are hauling trailers owned by another party under a written trailer interchange agreement. This agreement outlines the responsibilities of each party, including the carrier’s obligation to protect the trailer while it’s in their possession.

The Lane You’re In Matters: Trailer Interchange vs. Non-Owned Trailer Coverage

It’s essential to distinguish between trailer interchange and non-owned trailer coverage, as they address different scenarios:

Trailer Interchange Coverage:

• Applies when a written trailer interchange agreement is in place.
• Covers damage to the trailer while it’s in the insured’s possession under the agreement.
• Typically required for carriers who regularly haul trailers owned by other companies.

Non-Owned Trailer Coverage:

• Applies when a written trailer interchange agreement is not in place.
• Covers damage to trailers that the insured is hauling but does not own, regardless of a formal agreement.
• Provides broader coverage but may have limitations or exclusions.

Essentially, trailer interchange is for when there is a formal agreement, and non-owned is for when there is not.

Pump the Brakes: Do I Need Trailer Interchange Insurance?

Trailer interchange insurance is essential for motor carriers who:

• Regularly haul trailers owned by other companies under written interchange agreements.
• Operate in industries where trailer interchange is common, such as intermodal transportation or freight forwarding.
• Want to protect themselves from financial losses in the event of damage to a borrowed trailer.

The Driving Factors of a Trailer Interchange Agreement

A trailer interchange agreement is a legally binding contract that outlines the terms and conditions of the trailer exchange. Key elements of the agreement typically include:

• Identification of the parties involved.
• Description of the trailers being exchanged.
• Duration of the agreement.
• Responsibilities of each party, including maintenance, repairs, and insurance.
• Liability for damage or loss.
• Procedures for inspection and return of the trailer.

These agreements are designed to clearly define the responsibilities of each party, minimizing the potential for disputes.

Typical Deductibles, Coverage Amounts, and Premium Amounts

Deductibles:

• Deductibles for trailer interchange coverage typically range from $1,000 to $5,000, but can be higher depending on the value of the trailer and the carrier’s risk profile.

Coverage Amounts:

• Coverage amounts should be sufficient to cover the full replacement cost of the trailers being hauled. It is common to see coverage limits between $25,000 and $60,000. The value of the trailers being hauled heavily dictates the required coverage.

Premium Amounts Vary Based On:

• The value of the trailers being hauled.
• The carrier’s driving record.
• The carrier’s safety rating.
• The type of cargo being hauled.
• The deductible and coverage amounts chosen.
• The area of operations.
• Due to the large number of variables, giving a typical premium amount is very difficult. It is best to reach out to your local Rollo Insurance agent for a quote.

Key Considerations

• Carefully review interchange agreements: Ensure you understand your responsibilities and liabilities before signing any agreement.
• Maintain accurate records: Keep detailed records of trailer inspections, maintenance, and repairs.
• Implement safety procedures: Train drivers on proper trailer handling and safety procedures.

Rollo Insurance In the Passenger Seat

At Rollo Insurance, we understand the unique risks faced by commercial trucking businesses. We can help you navigate the complexities of trailer interchange coverage and secure a policy that provides comprehensive protection for your operations. Let’s partner on your road to safeguarding your business today.