Operators of commercial vehicles, such as truckers, need a number of insurance products.
Automobile Physical Damage insurance covers the damage to, disappearance, or destruction of actual automobiles and/or their equipment, such as tractors, trailers or semitrailers, trucks, or private passenger types of vehicles. Equipment does not include personal effects (clothes, eyeglasses, etc.)
Covered autos are determined by designation symbols that must be tailored to whether the automobile that is to be insured is owned, rented, leased, hired, or borrowed and the type of vehicle. Premiums usually depend upon the type and age of the vehicle, coverages chosen, garaging location, driver information, deductibles chosen, and loss experience
Such coverage is divided into two major components “collision” and “all perils other than collision.” Collision covers striking another object (including other vehicles) and overturn of the vehicle.
Comprehensive or “All perils other than collision” include loss by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, falling objects, or the sinking, burning, collision or derailment of any conveyance transporting the auto. These coverage’s can be purchased on an all inclusive or comprehensive basis.
Written on a basis where each peril is specifically described (called named peril or limited specified causes of loss.) Which are listed on the policy page under Section IV – Physical Damage Coverage.
In both cases there are some perils which are excluded from coverage.