How Much Trailer Interchange Insurance Your Trucking Business Must

Copyright (c) 2011 Ed Sneineh

The truck transportation of cargo represents a foundation in the domain of logistics that is used by almost any company wanting to ship and receive materials. This increased demand connected with goods transportation has urged a number of large businesses utilizing several different drivers; smaller companies seeking to get off the ground with more local resources, as well as private owner-operators working on a contractual obligation. Regardless if you are a trucking company or individual trucker looking to take advantage of the high demand in trucking, it becomes very important to invest in learning about the protection found with trailer interchange insurance.

What is Trailer Interchange Insurance?

Trailer Interchange is a physical damage insurance on trailers that a truck is hauling, or is under the control of that trucking company, and that is not owned or leased for the restricted use of the trucking company. The coverage does apply as comprehensive (theft, fire and more) and collision overturn and colliding with an object to a trailer pulled by a trucking company under an agreement (ie, non owned trailer.)

When evaluating the advantage of this protection opportunity, a person should start with creating a familiarity with what it protects. Most trucking and transportation organizations do not use only their own trucks and trailers to ship items from city to city. Instead these transportation companies use leased drivers and their tractors trucks to move various trailers owned by other parties to transport goods from one city to another. With trailer interchange insurance you are getting a coverage that will protect to a trailer owned by a third party in the bad happening of an accident or if damage were to occur to the trailer.

This coverage is crucial for any establishment or individuals in the transportation or trucking industry as it will provide protection to the interests of both the trucking/ transpiration company, as well as the clients who they regularly do business with. Other third parties will require to see a certificate of insurance with trailer interchange coverage stated on it, before them allowing you to pull their trailers or loads.

The worth of the trailer, not the merchandise hauled or goods loaded in the trailer, are the main determinants of the limits and the premium of the coverage. The most frequent limit of coverage for trailer interchange insurance in Illinois is $25,000, with a rate ranging from $600 to $1,000 annually, with a deductible of $1,000 per claim. If you end up hauling a more valuable trailer, your client may ask you to raise that coverage. Your insurance representative may do that for you quickly with an endorsement to your contract.

Which Business Does Not Need Trailer Interchange Coverage?

Trailer interchange insurance generally comes with almost all primary insurance contracts where MC filing is required. If that transportation business seeking primary insurance does employ their own trailers along with the leased trailers, they must have extra coverage to cover their own stated trailers, because trailer interchange does not cover owned trailer. Owner operators, or drivers who lease their own tractor trucks to trucking companies do not need this insurance (their leasing companies will supply it to them when they are under dispatch.) Maintaining the right insurance is always a highly advised expense for any business in any sector. Sometimes it is a legal obligation! With the merits of quality trailer interchange insurance, a trucking business owner can feel assured that their resources are preserved as they utilize trucks and owner operators to ship the goods of their clients. Knowing how this type of insurance functions, assists a business owner in identifying the seriousness related with holding or not carrying the proper type of this insurance.


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In the transportation industry, it is important that you not only transport goods safely but have the right protection to ensure security in the event of an accident or damage. With trailer interchange insurance, your business will be protecting self and clients, which will help bring them peace of mind. Find the best Chicago trucking insurance.