Trailer interchange vs non-owned trailer coverage
Your own physical damage coverage usually does not cover a trailer you do not own. Trailer interchange coverage pays for damage to a non-owned trailer in your care, often only under a written trailer interchange agreement. Some forms cover non-owned trailers without one. Check which wording your policy uses.
Coverage varies by policy and insurer. Read your policy, and ask your insurer what it covers.
- Why your physical damage does not cover it
- What trailer interchange covers
- When the written agreement matters
- If you have no interchange agreement
- How limits work
- FAQ
Fleets that pull shipper, broker or other carriers' trailers can carry a large loss they did not plan for. Here is how coverage for a trailer you do not own works.
Why your physical damage does not cover it
Physical damage coverage protects your own vehicles. Progressive's commercial pages, for example, say physical damage cannot be applied to non-owned trailers, such as those under a trailer interchange agreement.
What trailer interchange covers
- Damage to a trailer you do not own while it is in your care, custody or control
- Causes such as collision, fire, theft, explosion and vandalism
- Up to the limit you choose, less your deductible
Source: Progressive Commercial coverage pages, checked Oct 22, 2026. We name it only as a public example. We are not affiliated with or appointed by Progressive. Other insurers use their own forms.
When the written agreement matters
A 2015 MCIEF article on the standard ISO forms points out a difference. The trailer interchange wording in the motor carrier and truckers forms applies only to trailers in your possession under a written interchange agreement in which you take on liability for loss. The separate endorsement for business auto policies does not expressly require one, but MCIEF notes most for-hire carriers are written on forms that do. Progressive's page also requires a written agreement. Ask which form your policy uses, and keep signed agreements on file.
If you have no interchange agreement
Many trailers come with no interchange agreement, such as one borrowed from another carrier or furnished by a shipper. Some insurers offer non-owned trailer physical damage or hired auto physical damage for this. Names and terms vary by insurer, so ask which one fits how you get trailers.
How limits work
Progressive's example: with a $20,000 limit and a $1,000 deductible, you pay the first $1,000 toward a stolen trailer and the policy pays up to $20,000. If the trailer is worth more than the limit, you pay the difference. Set the limit to the value of the trailers you pull.
Brokers may ask to see this coverage. Uber Freight, for example, asks agents to list trailer interchange limits and deductibles on the certificate. See our broker requirements guide.
FAQ
Does my physical damage policy cover a trailer I do not own?
Usually not. Progressive, for example, says its physical damage coverage cannot be applied to non-owned trailers, which need trailer interchange coverage instead.
What is a trailer interchange agreement?
A written contract between trucking companies for one to use the other's trailer, in which the carrier with the trailer usually takes responsibility for damage while it has it.
Do I need a written agreement for coverage?
It depends on the form. The trailer interchange wording in the ISO motor carrier and truckers forms requires a written agreement. The ISO trailer interchange endorsement for business auto policies does not expressly require one (MCIEF, 2015). Most for-hire policies use the wording that needs one.
What does trailer interchange cover?
Physical damage to the non-owned trailer, such as collision, fire, theft, explosion or vandalism, up to the limit you choose, less your deductible.
Is trailer interchange the same as liability?
No. Liability pays for damage you cause to others. Trailer interchange pays for damage to the trailer you are hauling but do not own.
This guide is general information, not legal advice or an offer of insurance. Rules and programs change, so check the sources below. Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed.