Comprehensive vs. Specified Perils Coverage in Physical Damage Truck Insurance

Physical damage truck insurance

Physical Damage Truck insurance is designed to protect commercial trucks and other vehicles used in transporting goods. The Collision portion of the policy provides coverage for damage to the insured truck that occurs as a result of a collision with another vehicle or object. This includes accidents where the insured truck is at fault. The Comprehensive portion, which is also known as “Other than Collision” coverage, insures against a wide range of perils or events that are not related to collisions.

Both Collision and Comprehensive coverages include a deductible, which represents the out-of-pocket expense you must pay before the insurance coverage takes effect. Higher deductibles usually result in lower premiums.

The Other than Collision portion of the policy can be written in two ways:

  • Comprehensive coverage is broad and typically provides protection against a wide range of risks, and is often referred to as “all risks” coverage. It provides coverage for anything unless specifically excluded in the policy. Typical covered perils, but not necessarily limited to,  include damage caused by theft, vandalism, fire, natural disasters, falling objects, and collisions with animals. This coverage tends to come with higher premiums compared to specified perils coverage.
  • Specified Perils coverage is more limited in scope, providing protection only for the specific risks or perils explicitly named in the insurance policy. Commonly covered perils include fire and theft. Since only specified perils are covered, any damage that occurs due to a peril not explicitly listed in the policy would not be insured.

What to Consider When Selecting Comprehensive or Specified Perils Coverage 

It’s important to consider the specific risks your trucks may be exposed to when deciding between Comprehensive or Specified Perils coverage. If a broad range of risks is a concern, Comprehensive coverage may be more suitable. Your budget and cost considerations will also come into play. 

Assess your operational needs and the type of cargo or goods your trucks transport. Certain goods may be more susceptible to specific risks, influencing your choice of coverage.

You also need to consider any contractual obligations or insurance requirements from financing companies and lessors. They may stipulate the type and level of Physical Damage Truck Insurance coverage needed.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.