Comprehensive vs. Specified Perils Coverage in 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.

Trucking Insurance – How does it Work?

Most people don’t understand trucking insurance and haven’t done enough research before buying insurance. When it comes to trucking insurance, business owners have even more options. Let’s discuss the different types of insurance so that when you are ready to buy or renew your business insurance, you will have an idea of what types of insurance will fit into your business plan and goals.

Four main types of commercial truck insurance:

  • Liability insurance (Auto & General) pays for damages you cause. This insurance is usually required by law and is not an option.
  • Bobtail insurance, which is sometimes referred to as non-trucking liability, is a voluntary type of insurance that covers your truck when you’re not under dispatch.
  • Motor truck cargo covers the freight you are pulling. Although this insurance is not required by law, the shipping company may require it.
  • Physical damage coverage bases the premium on the value of the equipment. Your lienholder may require it, but generally it is not required by law. This type of coverage protects your truck against fire, theft and other types of damage. Ask your agent what is allowed and what is excluded. Always understand your policy.

Your business may want to consider these other types of trucking-related insurance coverage:

  • Non-owned trailer liability and physical damage are policies that protect the trailer if it belongs to someone else.
  • Terminal coverage protects freight which is stored at specified terminals for a specified time frame, generally 48 to 72 hours.
  • Warehouse legal protects goods that are stored for a longer time at that the terminal coverage and for which a storage is charge is made. The amount of coverage you want is based on the amount of goods stored. Workers Compensation and/or Occupational Accident Injury Coverage to protect the individuals employed or contracted with.

Obviously, if you never store goods or you own your own trailer, you won’t necessarily be concerned about some of these types of insurance. However, it is good to know that these policies are available to protect your risk exposure. Western Truck Insurance Services is always happy to answer any of your questions about insurance to give you the information you need to make an informed decision.

Saving Money on Your Trucking Insurance

Unfortunately, trucking insurance is one of the largest fixed costs of any trucking business. It’s a very important aspect of your business plan. It makes sense to work with your agent or broker to find the best coverage at the best rates to protect the future of your business and family. Although insurance can seem very costly each year, consider how much it would cost to replace your truck or cover the medical bills of a family injured in an accident. Here are some ways to get the best deals on your insurance:

  • Ask for fixed premiums.
  • Pay your insurance up front instead of in installments.
  • Ask if the insurance company has various discounts for various situations.
  • Talk to your insurer about a safety program. Many times, your insurer will help you put policies and procedures to help you run a better program.
  • Your insurer may also give a discount if your company has a written maintenance plan and a good history of looking after your vehicles.
  • Don’t overstate the value of your truck, hoping to get a better deal if it’s damaged in an accident.
  • It may not be cost-effective to have physical damage coverage on older, low value, vehicles.
  • You may also keep your premiums lower by watching your driving records closely. Make sure drivers obey traffic laws to prevent having traffic offences from accruing.
  • Talk to your insurer about where you keep your trucks, especially when parked overnight. A riskier area of the community may mean higher premiums.
  • As your vehicles get older, you may want to look at upgrading to safer and newer equipment.

Trucking insurance might be expensive, but it’s because trucks are expensive and accidents can be very costly;  especially in today’s litigious society. Trucks often carry valuable cargo which are also  subject to expensive losses.

Now that you understand the types of coverage and some of the factors that go into the costs associated with insurance, you can make better decisions about your own policies to cover your business.