Non-Owned Trailer Physical Damage Insurance
Last reviewed June 2026 by the Trucking Insurance Services team.
If you run power-only and pull trailers you do not own, non-owned trailer physical damage is the coverage that pays to fix one of those trailers when it is damaged on your truck. It is built for fast-paced haulers who hook up, run, and drop, often for several brokers, without a formal interchange agreement.
We place this coverage for power-only operators every day, so we know where it helps and where it leaves a gap. Here is what it covers, the limit mistake to avoid, and when you need trailer interchange instead.
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Non-owned trailer coverage at a glance
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Key takeaways
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What non-owned trailer physical damage covers
Non-owned trailer physical damage pays for damage to a trailer you pull but do not own, such as collision, fire, theft, and vandalism, up to the limit you carry. It covers the trailer itself, not the freight inside it. The load is covered by motor truck cargo insurance. It applies while the trailer is attached to your truck.
It is a form of physical damage coverage, added to your truck policy. You do not need an interchange agreement for it to apply, which is what makes it a fit for power-only haulers who pull whatever trailer a broker hands them.
The limit trap power-only haulers fall into
The most common and most expensive mistake with this coverage is carrying too low a limit. Non-owned trailer physical damage is built for quick, fast-paced power-only work, and in that world you do not always know what the trailer you just hooked is worth. You might pick up a high-value reefer or a specialized trailer worth far more than the standard dry vans you usually pull, on a limit that was set for the cheaper equipment. If you total that trailer, the coverage pays only up to your limit and you owe the rest out of pocket.
Set your limit to the value of the most expensive trailer you might realistically pull, not the average one. A higher limit costs a little more, but it closes the gap that has cost power-only operators tens of thousands of dollars.
It only covers an attached trailer
This coverage has one important limit: it covers the trailer only while it is attached to your truck. The moment you unhook and drop it, the trailer is no longer covered. For a lot of power-only work that is fine, because you stay hooked. But if you drop trailers and leave them in a yard, you have a gap, and the coverage that fills it is trailer interchange insurance, which follows the trailer even when it is dropped.
Non-owned trailer vs trailer interchange
These two coverages both protect a trailer you do not own, but they apply differently. Here is the short version.
| Question | Non-owned trailer PD | Trailer interchange |
|---|---|---|
| Covers the trailer while attached? | Yes | Yes |
| Covers a dropped or unattended trailer? | No | Yes |
| Requires a written interchange agreement? | No | Usually |
In short: choose non-owned trailer coverage if you stay hooked to the trailer and have no interchange agreement. Choose trailer interchange if you drop trailers or a contract requires it. For the full breakdown, see trailer interchange vs non-owned trailer coverage.
Who needs non-owned trailer coverage
- Power-only haulers. If you run for one or more brokers and pull their trailers without a written interchange agreement, this is the coverage built for you.
- Quick drop-and-pickup operators. If you hook, run, and swap trailers fast while staying attached, non-owned coverage fits the way you work.
- Occasional non-owned trailer use. If you sometimes pull a trailer you do not own and want it covered while it is on your truck.
How much non-owned trailer coverage costs
Non-owned trailer physical damage is priced as a percentage of the limit you choose, usually 1.5% to 5% a year. Your rate depends on your driving record, your equipment, and the limit you set. Because the premium scales with the limit, raising it to cover a higher-value trailer adds only a little to the cost, which is why we tell power-only operators not to skimp on the limit.
| Limit | Typical annual cost |
|---|---|
| $25,000 | $375 to $1,250/yr |
| $50,000 | $750 to $2,500/yr |
Get a non-owned trailer quote → or call 855-281-2924 and we will set the limit to the trailers you actually pull.
Frequently asked questions
What is non-owned trailer physical damage coverage?
It is physical damage coverage for a trailer you pull but do not own. It pays to repair or replace that trailer when it is damaged while attached to your truck, up to the limit you carry, and it does not require a written interchange agreement.
What does it cover?
It covers physical damage to the non-owned trailer, including collision, fire, theft, and vandalism, up to your limit. It covers the trailer, not the freight inside it. The load is covered separately by motor truck cargo insurance.
Does it cover a trailer I drop or leave unattended?
No. Non-owned trailer physical damage only covers the trailer while it is attached to your truck. If you drop a trailer and leave it, you need trailer interchange coverage, which follows the trailer even when it is unhooked.
How much does non-owned trailer coverage cost?
It usually runs 1.5% to 5% of the limit you choose, per year. A $25,000 limit runs about $375 to $1,250 a year, and a $50,000 limit runs about $750 to $2,500. Your exact rate depends on your record, equipment, and limit.
Do I need a trailer interchange agreement for it?
No. That is the main difference from trailer interchange. Non-owned trailer physical damage applies without a written interchange agreement, which is why it fits power-only haulers who pull for several brokers.
Non-owned trailer or trailer interchange, which do I need?
Choose non-owned trailer coverage if you stay attached to the trailer and have no interchange agreement. Choose trailer interchange if you drop trailers or a broker or terminal requires it. Many power-only operators are fine with non-owned coverage as long as the limit is set high enough. See our full comparison of trailer interchange vs non-owned trailer coverage.
Why choose Trucking Insurance Services
Power-only is one of the operations we know best. We spend all day around haulers who pull other people’s trailers, so we know the limit mistakes that hurt and how to set your coverage for the real range of trailers you might hook, not just the average one. We are a family-owned trucking agency, licensed since 2007, and the owner ran her own trucks before she wrote a single policy.
Get your free quote → or call 855-281-2924. Trucking Insurance Services, 380 Dahlonega St, Cumming, GA 30040.
Figures are estimates based on the policies we place and current market rates, for general guidance only. Coverage terms, limits, and what triggers a claim vary by carrier and policy form, so read your policy and confirm with your agent. Your actual premium and the right limit depend on your record, your equipment, and the trailers you pull. Get a quote for an exact number.