Auto & transportation

Trailer Interchange Insurance

Physical damage protection for trailers you pull but don't own, when you have a written trailer interchange agreement with the owner.

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When you pull a trailer owned by another carrier, a railroad or an equipment provider, the interchange agreement usually makes you responsible for physical damage to that trailer while it is in your possession. Your own auto physical damage typically applies only to equipment you own or schedule, so a damaged trailer can become an out-of-pocket bill.

Trailer interchange insurance can pay for loss of or damage to non-owned trailers you are responsible for under a written trailer interchange agreement. It is common for intermodal and drayage carriers pulling containers and chassis out of ports and rail yards. For example, many drayage carriers in the New Jersey and New York port area pull equipment under the UIIA (Uniform Intermodal Interchange and Facilities Access Agreement) and equipment providers' own terms.

If you pull non-owned trailers without a formal interchange agreement, such as a shipper's trailer on a drop-and-hook load, non-owned trailer physical damage is usually the better fit. We help motor carriers compare their interchange agreements with the policy before they pull the equipment.

What's typically included

Exact coverage depends on the policy form, endorsements and insurance company.

Physical damage to non-owned trailers

Can pay for collision, fire, theft and other physical damage to a trailer in your possession under a written interchange agreement, up to the limit you choose. How the policy defines possession varies, so check the wording.

Containers and chassis

Many policies can extend to intermodal containers and chassis. Confirm how the policy defines a trailer and whether the limit applies per unit.

Loss of use

Interchange agreements often charge per diem or loss-of-use fees while a damaged trailer is out of service. Some policies include limited loss-of-use coverage.

Defense and how claims are paid

Many forms pay what you are legally responsible for under the agreement and can include defense when the trailer owner makes a claim. Others may pay for the damage regardless of fault. Whether defense is included, and whether it reduces your limit, depends on the policy.

Non-owned trailer physical damage

A separate option for trailers you pull without a written interchange agreement. It may carry different limits, conditions and eligibility rules.

What to watch for

No written agreement. Trailer interchange generally depends on a written interchange agreement; without one, it may not respond at all.
When the trailer is out of your possession. Coverage usually applies while the trailer is in your possession under the agreement; a trailer dropped at a shipper's location or left at a yard may be treated differently, depending on the wording.
A limit that is too low for the equipment. A newer reefer trailer can be worth far more than a dry van or chassis, so set the limit by the most valuable unit you might pull.
Per diem and loss-of-use charges. The agreement may hold you responsible for daily charges while a trailer is being repaired; check whether the policy includes any.
Agreement terms beyond physical damage. Many interchange agreements also require auto liability and general liability at set limits, with the equipment owner as additional insured.
Theft at drop yards. Theft of a trailer left at an unsecured location may be subject to conditions or exclusions.

What affects price and eligibility

Values of the trailers, containers and chassis you pull
Number of units interchanged and how often
Radius of operation and where equipment is parked
Loss history
Limit and deductible selected

Helpful information for a quote

Have what you can — we'll ask for anything else an insurance company needs. Starting a new business? You can begin without prior policies or loss runs.

Copies of your trailer interchange agreements, including UIIA participation if any
Types and typical values of trailers, containers and chassis you pull
USDOT and MC numbers
Loss runs for the last 3–5 years, if you've been insured before
Current trucking policy declarations, if you have them

Written by ALP Insurance

Who typically needs it

Intermodal and drayage carriers pulling containers and chassis from ports and rail yards
Carriers that participate in the UIIA
Motor carriers that swap trailers with other carriers under written interchange agreements
Owner-operators with their own authority pulling trailers supplied under a written agreement
Power-only carriers, depending on whether a written interchange agreement is in place

Talk it through with an agent

Not sure what you need? Start a request and choose "Not sure" — a licensed ALP agent will talk through the options with you.

Request a trailer interchange quote

Industry guides

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Trailer Interchange FAQs

What is a trailer interchange agreement?

It is a written contract between carriers, or between a carrier and an equipment provider, for exchanging trailers. It typically spells out who is responsible for damage while the equipment is in the other party's possession.

How is trailer interchange different from non-owned trailer coverage?

Trailer interchange typically applies when you have a written interchange agreement with the trailer owner. Non-owned trailer physical damage is meant for trailers you pull without one, such as a shipper's trailer on a drop-and-hook load.

Does my own physical damage coverage apply to a trailer I don't own?

Usually not. Auto physical damage generally applies to equipment you own or schedule, so an interchanged or borrowed trailer typically needs its own coverage.

Does trailer interchange include liability while I pull the trailer?

Usually not. Liability for injuries or damage to others while you pull the trailer typically comes from your primary auto liability. Trailer interchange is about damage to the trailer itself.

I pull containers out of the New Jersey and New York ports. What do I need?

Drayage carriers in the port area typically need primary auto liability, general liability and trailer interchange that meet UIIA and equipment provider requirements. Those requirements change, and other ports and rail yards have their own, so we review your agreements with you.