If you frequently pull a trailer that is not owned by you, then you’ll need to invest in trailer interchange insurance. Think of trailer interchange insurance as coverage for physical damage to the trailer caused by collision, theft, fire, vandalism, or explosion. While you may already carry insurance, since the exchanged trailer is not owned by you it requires separate insurance coverage.
Yes, a trailer interchange agreement is a contract that allows for one of the two parties to transfer the trailer to the other to complete a shipment. Whichever party is in possession of the trailer is responsible for any damages that incur while in their care. When you purchase a trailer interchange insurance policy, you choose both a limit and a deductible. A limit refers to how much money the insurance company will pay for damages, if you must use the coverage. While the deductible is the amount of money that you have to contribute before the insurance company picks up the tab. If you are in need of a trailer interchange agreement template, please give us a call and we can provide one.
Keep in mind that if you lend a trailer to another party but fail to have a written trailer interchange agreement, then you cannot hold the other person responsible for any damage incurred while the trailer is in their possession. Consequently, it is imperative to understand whether or not you need an agreement in place prior to letting anyone use your trailer to transport cargo.
Determining whether you need trailer interchange insurance does not have to be a challenge or a chore. At Road Ready Insurance Agency we are happy to assist in determining whether you need a policy. Our team of friendly and knowledgeable insurance professionals knows this niche market better than anyone else in the industry so give us a call today to schedule a consultation.