Physical Damage Truck Insurance Overview

Described as First Party Insurance this coverage provides you protection for your investment in truck and trailer equipment.   It is provided on a specified perils or comprehensive basis and collision.   The choice to select specified perils over comprehensive is generally due to price considerations.  Western Truck Insurance almost always recommends comprehensive coverage as the price difference is generally not enough to risk having a claim denied.

Physical Damage Deductible

Both the types of coverage contain a deductible that you are responsible for in the event of a claim.  The selection of that deductible (commonly set at $1000) is a discussion you should have with your agent.  Higher deductibles reduce your cost of the insurance.

Determining Value of Your Equipment

Equipment is valued under 2 methods; either stated amount or actual cash value. Most heavy truck insurance companies provide physical damage on a stated amount basis.  You need to determine and insure your equipment its’ current market value. This can be tricky, and you should discuss with your insurance agent. Some insurance companies provide actual cash value basis which eliminates the guesswork of stating a value. In all cases, the insurance company will provide the lower of the cost to repair or replace the equipment at current market valuation in the event of a claim.

Towing Reimbursement

Another important consideration is to determine how much reimbursement for towing expenses is included in this coverage. Towing, recovery, and storage costs, after an accident, are significant and if your physical damage insurance policy does not provide enough you could be responsible to pay a tremendous amount out of your own pocket. Make sure you understand this important provision.

Also consider a Commercial Truck Roadside Assistance plan to help cover expenses.