Protect the Trucks and Equipment That Keep Your Business Moving
Commercial truck physical damage insurance helps pay to repair or replace your covered truck or trailer when it is damaged in a collision, stolen, vandalized or affected by another covered loss.
Auto liability insurance protects you when your truck causes injury or damage to someone else. Physical damage insurance protects your own equipment.
Whether you own one truck or operate an entire fleet, your vehicles are among your most valuable business assets. The right physical damage coverage can help you recover from a loss and get back on the road as quickly as possible.
What Does Truck Physical Damage Insurance Cover?
Physical damage insurance generally includes two types of protection:
Collision Coverage
Collision coverage helps pay for damage to your covered vehicle when it:
- Collides with another vehicle
- Hits a stationary object
- Overturns or rolls over
- Is damaged in a single-vehicle accident
- Is involved in another covered collision
Collision coverage may apply regardless of who was responsible for the accident, subject to the policy’s deductible, terms and exclusions.
Comprehensive Coverage
Comprehensive coverage helps protect your truck against covered losses that do not result from a collision. These may include:
- Theft
- Vandalism
- Fire
- Hail
- Wind
- Flood
- Falling objects
- Glass damage
- Contact with an animal
Some insurance companies refer to this as “other than collision” coverage.
What Vehicles Can Be Covered?
Physical damage insurance may be available for many types of commercial vehicles and equipment, including:
- Semi-trucks and tractors
- Straight trucks
- Box trucks
- Dump trucks
- Flatbed trucks
- Hotshot trucks
- Cargo vans
- Pickup trucks used commercially
- Refrigerated trucks
- Owned trailers
- Financed or leased equipment
- Specialized trucking equipment
Available coverage depends on the vehicle, its value, how it is used and the insurance company’s underwriting requirements.
Is Physical Damage Insurance Required?
Physical damage coverage is not normally required by state or federal liability laws. However, a lender or leasing company will usually require it when a vehicle is financed or leased.
Even when it is not required, physical damage insurance can be important. Repairing or replacing a commercial truck after a major accident, fire or theft could create a significant financial burden for your business.
How Is the Value of a Covered Truck Determined?
The policy may insure a truck based on its actual cash value, stated amount or another valuation method described in the policy. The amount listed on the policy does not always guarantee that the same amount will be paid after a total loss.
When applying for coverage, it is important to provide an accurate value for each truck and trailer. Depending on the vehicle, documentation may include:
- Purchase agreements
- Loan or lease documents
- Current market values
- Equipment specifications
- Records for permanently installed upgrades
- Photographs
- Maintenance or inspection records
We can help you review the values listed on your policy so your equipment is insured appropriately.
Choosing a Physical Damage Deductible
Your deductible is the amount you are responsible for paying toward a covered claim before the insurance company pays the remaining covered amount.
Common deductible options may include:
$1,000
$2,500
$5,000
Higher deductibles for larger fleets or more expensive equipment
Choosing a higher deductible may reduce your premium, but it also increases your out-of-pocket cost after a loss. Your deductible should be an amount your business can comfortably absorb.
Does Physical Damage Cover Cargo?
No. Physical damage insurance generally covers the insured truck or trailer—not the freight
being transported.
Motor truck cargo insurance may be needed to protect your customers’ property while it is in your care, custody or control.
Does Physical Damage Cover Lost Income?
Standard physical damage coverage does not normally reimburse your business for all income lost while a truck is being repaired.
Rental reimbursement with downtime coverage may be available to help pay for:
- The cost of renting a temporary replacement vehicle
- Lost income during a covered period of downtime
- Other eligible expenses identified in the policy
Coverage availability and benefit limits vary by insurance company.
What Affects the Cost of Physical Damage Insurance?
Insurance companies consider several factors when determining the premium, including:
- Value of each truck and trailer
- Vehicle age and condition
- Type of equipment
- Selected deductibles
- Driver experience and motor vehicle records
- Operating radius
- Garaging location
- Cargo hauled
- Loss history
- Safety practices
- Number of covered vehicles
- Anti-theft devices and tracking systems
Newer or more expensive trucks generally cost more to insure because they may be more expensive to repair or replace.
Physical Damage Insurance for Owner-Operators and Fleets
We help owner-operators, new ventures and established fleets find physical damage coverage
suited to their equipment and operation.
Your physical damage policy may be combined with other important trucking coverages, including:
- Commercial auto liability
- Motor truck cargo
- General liability
- Trailer interchange
- Non-trucking liability
- Rental reimbursement with downtime
- Uninsured or underinsured motorist coverage
- Occupational accident insurance
Get a Commercial Truck Physical Damage Quote
Protect the equipment that keeps your business running. We will review your trucks, trailers, values and deductible options to help you find appropriate coverage at a competitive price. Contact us today to discuss your operation and request a commercial truck physical damage insurance quote.
Request a Quote
Coverage availability, valuation methods, deductibles and requirements vary by carrier, state and individual risk. All coverage is subject to the terms, conditions, limitations and exclusions of the applicable insurance policy.
