Physical Damage Coverage

Physical damage coverage pays to repair or replace your own truck and trailer. It usually comes in two parts: collision, for damage from hitting another vehicle or object or from a rollover, and comprehensive, for theft, fire, vandalism, hail and other causes that are not a collision.

Many trucking policies write physical damage on a stated amount for each unit, with a deductible you choose. The premium is figured from that amount, and on a total loss the policy usually pays the lesser of the stated amount and the actual cash value, so an accurate amount matters: set it too high and you pay for coverage you cannot collect, set it too low and a total loss leaves you short.

If your truck is financed or leased, the lender or lessor will almost always require physical damage coverage and list itself as loss payee. Owner-operators who own their equipment outright can choose, but few can absorb the cost of replacing a tractor after a crash.

Not the Same as Auto Liability

Liability pays for injuries and damage you cause to other people. Physical damage pays to repair or replace your own equipment.

Example

A tractor insured for a stated amount of $85,000 slides off an icy ramp with no other vehicle involved. Liability pays nothing because no one else was harmed; collision coverage pays the repair, less the deductible.