At a glance
- What it covers
- Physical damage coverage for trailers you pull but don’t own, when there’s no written interchange agreement.
- Who needs it
- Carriers who borrow or rent trailers informally.
When You Need Non-Owned Trailer Coverage
It could be as simple as being asked one day by a friend who also owns a rig to help him out because he owns more than one trailer and has a strict timeline on delivery. Or perhaps, for a particular job, you need a type of trailer that you don’t own, so you lease it. Does the person or company that owns the trailer have adequate, or any, insurance on it? You never know for sure. To protect yourself, you need non-owned trailer coverage.
What You Need to Know
Perhaps first and foremost, understand that non-owned trailer coverage DOES NOT cover the goods in the trailer; to cover the goods you need trucker’s cargo liability insurance (see separate article). Non-owned trailer insurance covers only the trailer itself, for damages suffered from occurrences such as collision, fire, theft, and vandalism.
Second, note that the non-owned trailer is only covered when it is actually attached to your rig. This is different from trailer interchange insurance (see separate article), which covers the trailer whenever it is under your care and control, regardless of whether it is attached to the rig.
Third, any containers that are on the trailer are typically not covered by non-owned trailer insurance (unlike the situation with trailer interchange insurance); if you are pulling a flatbed with containers on it you will need separate insurance for the containers.
Unlike trailer interchange insurance, which can only be obtained when you have an interchange agreement in force, non-owned trailer insurance can be obtained at any time.
Deductibles and Limits
Limits of coverage, which is the maximum amount the insurer will pay in case of a loss, are typically in the range of $20,000 to $30,000 for trailers. Deductibles, which are the amount that you must pay before the insurer begins to pay, are typically about $1,000.
