If you pull trailers owned by someone else — a broker, shipper, or interchange partner — your standard physical damage policy almost certainly doesn't cover them. This is one of the most common and most expensive coverage gaps in trucking. What Is Trailer Interchange? Trailer interchange is a written agreement between two parties where one party (usually a motor carrier) takes possession of a trailer owned by another party (usually a shipper or broker). The agreement specifies who is responsible for damage to the trailer while it's in the carrier's possession. The key word is "written agreement." If you sign a trailer interchange agreement — and most carriers do without reading them carefully — you've accepted financial responsibility for that trailer. Why Standard Physical Damage Doesn't Cover It Your physical damage policy covers equipment you own or lease long-term. It specifically excludes property in your "care, custody, or control" that you don't own. A trailer you picked up under an interchange agreement falls squarely into this exclusion. This means if you're pulling a $45,000 reefer trailer under interchange and it's damaged in an accident, stolen, or destroyed by fire — you're personally liable for the full replacement cost. What Trailer Interchange Insurance Covers Covered perils typically include: - Collision damage - Comprehensive (theft, fire, vandalism, weather) - Overturning - Loading/unloading damage (varies by policy) Common exclusions: - Mechanical breakdown - Tire damage (unless caused by a covered peril) - Wear and tear - Damage from improper loading by the shipper - Refrigeration unit breakdown (unless you add reefer breakdown coverage) How Much Does It Cost? Trailer interchange premiums depend on: - The number of trailers you interchange at any given time - The maximum value per trailer - Your loss history - Whether you need reefer breakdown coverage Typical costs range from $800-$2,500 per year for a single owner-operator interchanging 1-3 trailers at a time. Fleets pulling dozens of interchanged trailers pay more but benefit from volume pricing. Who Needs Trailer Interchange? You need this coverage if: - You pull drop trailers for Amazon, Walmart, or other major shippers - You operate under interchange agreements with brokers - You pick up loaded trailers at rail yards - You pull any trailer you don't own under a written agreement You probably don't need it if: - You only pull your own trailers - You're leased to a carrier that provides trailer interchange coverage - You only do live load/unload (no drop trailers) The Interchange Agreement Trap Many carriers sign interchange agreements without reading them. These agreements almost always include language making you responsible for "all damage" to the trailer while in your possession — regardless of fault. Some agreements even make you responsible for pre-existing damage unless you documented it at pickup. This is why we tell every client: photograph every trailer at pickup and delivery, noting any existing damage on the interchange receipt. How Trux Handles Trailer Interchange We review your interchange agreements, determine your maximum exposure, and structure coverage that matches your actual operations. If you're pulling high-value reefer trailers, we make sure reefer breakdown is included. If you're interchanging at multiple locations, we ensure your coverage follows the trailer regardless of where damage occurs. Don't assume you're covered. Send us your interchange agreements and we'll tell you exactly where you stand.