So it`s no surprise that freight brokers want to cover their trailer, especially as part of your insurance. As with truck property damage insurance, this coverage requires the selection of an amount and a deductible. Your situation may require you to consider both trailer replacement and coverage for non-personal physical damage. Coverage for physical damage to uninsered trailers differs in that there is no written agreement to replace trailers. Coverage is only granted if the trailer is attached to your truck. If you are transporting freight under a written agreement, you must take out this insurance. Without them, you risk paying an expensive bill if damage occurs during your use. The same truck driver can take another trailer before accepting the return trip to Los Angeles. A trailer can be changed between several companies and drivers on the way across the country. Trailer exchange agreements make the process easier and more efficient, as not a single truck driver has to go the entire route. A trailer exchange agreement makes the engine carrier – the trucker pulling the trailer – liable for all physical damage to the trailer.

Companies involved in a trailer exchange agreement may require those towing the trailer to have trailer exchange insurance. This type of insurance covers physical damage that may be caused to the trailer when it is pulled by a party that does not own the trailer. Insurance coverage covers the trucker in possession of the trailer and covers damage caused by fire, theft, vandalism or collision. The policy has a deductible and limits on the amount of damage covered. A trailer exchange agreement is required when a cargo trailer is transported by different truckers and freight forwarders en route to final delivery. .