Physical Damage Coverage

Life was good. You just closed your first big deal. It was time to splurge. You were ready to have a little fun. You wanted to celebrate. So you made a big purchase. You bought a new rig. It wasn't that expensive for some, but it was exactly what you wanted. You didn't even think twice about your insurance coverage. You just kept what you had on your old truck. If you were in a crash, things would be covered. You weren't too concerned about it. You just wanted to drive your new ride all over. You cruised around showing off to family and friends. Life was good. The new rig was sure to make you a bundle of money. Then it happened. You heard the engine sound one night. You weren't driving. You quickly sprung to see what was going on, but it was way too late. The damage was done. You saw your brand new truck firing off down the road. You weren't behind the wheel. You had no idea who was, but you knew you didn't have a way to get back to your truck quickly.

Your new rig was stolen right from you. That was awful. You didn't imagine things would get worse. Once you have calmed down, you reached out to the insurance company. You figured your rig would be covered. You thought a new one would be in your possession in a matter of weeks. You thought wrong. Apparently, you had purchased the wrong kind of Physical Damage Insurance. You bought collision, but you needed comprehensive to be covered if your truck gets stolen.

What is Physical Damage Insurance?

Physical Damage Insurance is a coverage designed to relieve a truck owner or driver of the numerous risks found on the road. Trucking is a dangerous industry filled with risks.

Physical damage is a coverage that is usually combined with liability coverage to offer a full-spectrum policy that eliminates a majority of risks for truck drivers while on the road.

There are two main types of Physical Damage Insurance:

• ​ Collision Coverage​
• ​ Comprehensive Coverage​

Collision coverage offers protection for drivers if they're in a crash. During a wreck, a driver with collision coverage will be fully covered. They'll have liability and physical damage coverage.

Comprehensive coverage offers all the benefits of collision, and more. For instance, comprehensive also covers:

• ​ Fire​
• ​ Vandalism​
• ​ Theft​
• ​ Rioting​
• ​ Hail, Flooding, and weather​
• ​ Explosions​
• ​ Animal damage​
• ​ Broken glass issues​

Essentially, an owner-operator will purchase comprehensive physical damage coverage to ensure they're fully covered during business-related operations.

Who Needs Physical Damage Insurance?

While liability insurance is required by law for owner operators, the risk of driving a truck usually requires Physical Damage Insurance that is optional unless a bank requires it.

Trucks are big rigs. They aren't cheap. Your truck is an investment into your future and business. As such, liability coverage rarely offers the protection most drivers desire and require.

Physical Damage Insurance is needed by any driver or owner operator of a truck looking to protect their assets and future. 

What Does Physical Damage Insurance Cover?

The type of Physical Damage Insurance will determine how much coverage you get and what is covered.

Collision coverage, covers damages to your truck during an accident.

Comprehensive Coverage includes nearly all costs related to any damage occurring during business-related operations that are not collision. While certain limitations do apply, the coverage is referred to as "comprehensive" for a reason.

Specified Perils coverage is more limited that comprehensive coverage and covers only the perils that are specifically listed on the policy.

How Much Does Physical Damage Insurance Cost?

The amount of coverage and type of policy will ultimately determine how much you pay for Physical Damage Insurance. Rigs vary in cost, so your policy will, too.

On average, you'll pay between $2-3  to $7-8 per month for every $1,000 your rig is worth. For example, if you have a truck that's worth $70,000, you'll typically pay around $200-$800 a month for Physical Damage Insurance. The cost of insurance depends on many other factors like driving records, prior history, financial responsibility factors garaging address, size of the fleet and may others.

Understanding Physical Damage Insurance

Overall, every owner-operator of a big rig should consider Physical Damage Insurance coverage. While liability legally allows you to drive, you'll want more coverage to minimize risks. Physical Damage Insurance is the coverage you need.

This article is for general information purposes and is not intended as insurance and/or legal advice. Please consult your insurance agent/broker and/ or seek legal advice as policies vary widely and needs defer. ​Bobtail.Insure​ is an insurance program for owner operators under permanent lease to a motor carrier exclusive for members of the North American Independent Contractors and Owner Operators association.