Tag: Physical Damage Truck Insurance

Comprehensive vs. Specified Perils Coverage in Physical Damage Truck Insurance

Western 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.

Inside Finance/Lease Gap Coverage As Part of Physical Damage Truck Insurance

Bob Holtzman

Our last article looked under the hood of Physical Damage Truck insurance, which provides owners/operators of truck and trailer equipment with collision and comprehensive coverage. Collision coverage protects you in the event of a collision or overturn, while Comprehensive coverage protects you against most other physical damage losses. These losses could be caused by fire, theft, vandalism, or animal contact.

You can also add Gap coverage if you are financing or leasing your truck. It pays the difference between the actual cash value (ACV) of the truck and the current outstanding balance on your loan or lease. In fact, the lessor or lender will require you to purchase Physical Damage Truck insurance when financing your vehicle. You should also consider purchasing Gap coverage at the same time.

How Does Gap Coverage Work?

Let’s say you took a loan from the bank on a truck for $50,000. During the first year, you drove 80,000 miles. You were involved in an accident and had a total loss. Your insurance company determined that the truck was worth $35,000 at the time of the loss, but you were still responsible for the outstanding $40,000 on the loan. If you had Gap insurance, your coverage would have paid you the $35,000 value (less your deductible) and another $5,000 for the coverage gap.

It’s important to note that finance/lease Gap coverage does not cover carryover balances, lease penalties, late payments, and extended warranties. In addition, to be eligible for Gap coverage, you must be the original owner of the financed or leased vehicle, and the truck must be purchased from a new dealer rather than a previous owner.

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.