Short answer
Lessors want $1 million liability with them as additional insured, and physical damage cover with them as loss payee, or their own damage waiver (Premier). Trailer interchange cover runs about $40 to $120 a month (REPOWR).
| Cover | What it pays for | Notes |
|---|---|---|
| Auto liability (with trailer) | Injury and damage to others | Lessor named additional insured; $1M combined single limit is the published Premier minimum |
| Trailer interchange | Damage to a trailer you do not own while in your care under a written interchange or rental agreement | About $40 to $120 a month (REPOWR) |
| Non-owned trailer physical damage | Similar to interchange where no interchange agreement exists | Ask your agent which one your policy has |
| Lessor damage waiver (LDW, CDW) | The lessor waives its claim against you for damage, minus any exclusions | Replaces your physical damage cover at Premier; XTRA sells a collision damage waiver |
Read the waiver exclusions
Each lessor writes its own waiver. Before you sign, ask four questions: are tires covered, is overhead damage (a bridge or canopy strike) covered, is damage from loading covered, and what theft requires (a police report, a kingpin lock). If a likely risk is excluded, keep your own physical damage cover too.
Send the certificate before pickup
Lessors release the trailer once they have a certificate of insurance that lists them correctly (Premier FAQ). Ask your agent to send it straight to the branch.
Questions people ask
What is trailer interchange insurance?
Cover for physical damage to a trailer you do not own while it is in your possession under a written interchange or rental agreement. REPOWR puts it at about $40 to $120 a month.
Do I need insurance if I buy the damage waiver?
You still need liability insurance. The waiver only replaces physical damage cover for the trailer, and only within its exclusions.
Sources
Last reviewed October 29, 2026. Rates, branches and terms change; confirm with the lessor before you book.