What is Physical Damage Insurance and Why it is Important?

Apr 24, 2019 in Insurance 101

There are a lot of risks on the open road. When choosing commercial trucking insurance, you have to remember that not all accidents happen on the road. Your truck could be damaged or totaled in an accident or from fire, storm or other natural disasters. Someone could steal or vandalize it. Any of these could put your truck and your business out of order. As a result you can lose a lot of money on repairs or even a new truck. Not to mention the lost profits.

There is a solution – Physical Damage Insurance! What you need to know is that there are two basic types of coverage for this insurance. Collision and Comprehensive coverage. Each of them covers different things. 

What is collision coverage?

Let’s say you are driving on an icy road during the winter. Your truck starts jackknifing and rolls over on the road. Maybe it can hit another vehicle. Now, for the other vehicle, your Liability coverage will take care of it. But Collision coverage will help for the damages on your truck. Not only it will cover what you have to pay to repair or replace your truck if you’re involved in an accident, but it can also cover the towing and storage expenses.

What is comprehensive coverage?

Comprehensive coverage can cover the costs to repair or replace your truck if something other than an accident happens to it. Comprehensive insurance covers losses caused by anything else than collision. Losses like natural disasters, fire, animal strikes, vandalism, and falling objects. It will also cover you against theft. For example, let’s say you left your truck in the garage or parking lot and you went to sleep. A storm causes a shortage and a fire start damaging your truck significantly. It’s not gonna be a pleasant morning at all. Comprehensive will cover the damages done to your truck in this case.

What else you should know about Physical damage insurance?

First of all, if your truck is leased, you probably are required to have Physical Damage insurance. Second, Physical damage insurance do not cover damage done to cargo. The standard Physical Damage policy does not cover your personal items, electronics, tarps, chains, binders, tools as well as any non-permanently attached equipment to your tractor or trailer. Of course you can select additional coverage for these items, but in general they are not covered. And finally, when you select Physical Damage insurance, you also are required to submit a Stated Amount. This Stated Amount is your best estimate of the current value of your vehicle. The Stated Amount should take the age and condition of your vehicle into account, as well as any permanently attached equipment.

To summarize, physical damage insurance can help you financially if something happens to your truck. Your business and probably your life depends on that truck, after all, and you need to be able to get it back on the road as quickly as possible. Trucks are expensive and you should protect your investment with physical damage insurance.

You probably wonder how much does it cost? You can get free instant quote here.