Physical damage insurance covers your own tractors and trailers when they’re damaged in a wreck, stolen, burned, or damaged by weather or other covered causes. Liability insurance pays for damage you do to others; physical damage pays to repair or replace your own equipment. Transportation Risk Specialists places physical damage coverage for owner-operators and fleets with A-rated carriers.
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What physical damage covers
Physical damage usually comes in two parts:
- Collision — Damage from hitting another vehicle or object, or from an overturn.
- Comprehensive (or specified perils) — Damage from causes other than collision, such as theft, fire, vandalism, hail, wind, flood, or hitting an animal. Some policies cover named perils only; others cover all causes not excluded.
Coverage can apply to tractors, trailers, and permanently attached equipment listed on the policy. Ask about coverage for custom parts, aftermarket equipment, and tarps or straps, which may need to be scheduled separately.
Stated amount vs. actual cash value
- Stated amount. Many truck policies are written on a stated amount basis: you state the value of each unit when the policy is written. Read the settlement terms carefully, because many stated amount policies pay the lesser of the stated amount or the actual cash value at the time of loss, or the cost to repair.
- Actual cash value (ACV). The value of the unit at the time of the loss, which accounts for depreciation.
State a realistic value for each unit and update it when values change. Overstating a value can raise your cost without raising what the policy pays; understating it can leave you short.
Deductibles
A higher deductible generally lowers your cost but means you pay more out of pocket on a claim. Pick a deductible you could actually pay the week after a wreck. If your truck is financed, your lender may set a maximum deductible.
Financed and leased equipment
If you finance or lease your truck or trailer, the lender or lessor will usually require:
- Physical damage coverage for the full term of the loan or lease
- The lender listed as loss payee on the policy
- A maximum deductible
Send us your finance or lease agreement and we’ll set up the policy and evidence of insurance to match.
Towing, downtime, and other options
- Towing and labor. Towing a loaded tractor-trailer can be expensive, especially far from home. Many policies offer towing coverage with a limit; confirm the amount fits your equipment and routes.
- Rental reimbursement or downtime. Some markets offer coverage to help with costs while your truck is in the shop. Availability and terms vary.
- Gap coverage. If you owe more on the truck than it’s worth, ask whether gap coverage is available.
Physical damage FAQ
Is physical damage insurance required?
Federal rules don’t require it. Your lender will require it if your equipment is financed, and it’s how you protect equipment you own outright.
Does my motor carrier’s policy cover my truck if I’m leased on?
Usually not. The motor carrier’s policy typically covers liability, not damage to an owner-operator’s truck. If you own the truck, plan on insuring it yourself.
Are my trailers covered?
Only if they’re listed on the policy or the policy includes coverage for them. Trailers you pull but don’t own may need trailer interchange or non-owned trailer coverage.
Protect your equipment. Call 205-221-5466 or start your quote with your DOT number.
Coverage descriptions are general; actual coverage depends on the policy issued.