Trailer Interchange Coverage
This coverage provides Physical Damage coverage for trailers that are
pulled under a trailer interchange contract. It is a Physical Damage insurance
that is applicable for non owned trailers.
With this coverage, you get protection for the trailer in the event that
it is involved in collision, damaged from fire, explosion, or vandalism.
It also covers against fire. And because the exchanged trailers are now
owned by you, it means that you are required to have separate insurance
coverage since they are not covered under your own Physical Damage coverage.
Who Should Take Trailer Interchange Coverage?
When you have signed for a trailer interchange contract, it means
that you are in possession of a container or trailer that you do not own.
You are thus required to have Trailer Interchange coverage to protect
you.
The trailer interchange contract is an agreement that is used to transfer
a trailer from one trucker to another during a shipment. This is because;
the trucker who is in possession of the trailer is accountable for damages
that arise when using the trailer.
Trailer Interchange Coverage: Limits, Deductibles and Other Information
You need to select both limit and deductible for the Trailer
Interchange coverage. The limit describes the single amount that is
to be paid by your insurance company for this coverage. A deductible
is what you have to pay from your pocket for repairs or replacement.
An Example of Interchange Insurance Coverage
When hauling an exchanged trailer and you may pull off the high
way to refuel and decide to take a bite, and as you eat your truck is
stolen. Since this is not your own trailer, the Comprehensive insurance
or Property Damage coverage cannot compensate for the stolen trailer.
This could be compensated by your Trailer Interchange coverage. In case
you have selected a limit of $20,000 and the deductable you quoted was
$ 1000, then it means that you pay for the deductible you have quoted
from your pocket.
The insurance company pays for the limit amount towards the repair or
replacement of the trailer. If the trailer is more than the $20,000 amount,
you have to pay for the difference.
Trailer Interchange Coverage: Exceptions and Restrictions
• A written trailer interchange agreement is required.
• In order to be eligible for Trailer Interchange coverage, you
also have to purchase the Liability insurance.
• Trailer Interchange coverage is presently not available for pickups
and tractors.
• Other types of vehicle are not presently eligible for this type
of coverage.
Non-Trucking Liability Coverage
The non-trucking Liability is a necessity for the independent
owner-operator considering that the trailer is his or her livelihood.
This is because, he or she want to have the trailer protected all the
time.
This coverage provides a protection for truck in unlimited radius if
you have acquired a permanent lease to a carrier and you are not driving
the truck under dispatch. This liability coverage takes care of costs
related to injuries or death that is caused to other persons or property
damage.
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