Under the Hood of Physical Damage Truck Insurance


Your truck and trailer equipment are the lifeline of your business and represent a significant investment. If your truck is damaged in an accident or fire or vandalized or stolen, you’re off the road, and your business is temporarily sidelined. Physical Damage Truck insurance steps in to get your truck and equipment repaired or replaced, and you back behind the wheel.

Physical Damage Truck insurance insures vehicles against a variety of damages, such as collision, vandalism, fire, and theft.

Policy Options Available

You can choose to get coverage on a specified-perils basis or purchase a policy with collision and full comprehensive insurance. With specified-perils coverage, you’re protected against only those losses your policy specifically lists. While this option costs less than comprehensive-based coverage, the difference is not significant enough to risk having a claim denied because the peril is not listed in the policy. We almost always recommend going for comprehensive coverage, so you are not left with hefty repair bills or, even worse, the cost of a new truck.

You also have a choice of deductibles for both collision and comprehensive coverage. The deductibles you choose (typically set at $1,000) will depend on how much you want to pay out of pocket before coverage kicks in. The higher the deductible, the lower the premium, as you will bear more repair costs. We can discuss this with you in further detail.

Coverage Limits

Ensure you buy enough coverage to cover the value of your truck and equipment. When you purchase Physical Damage insurance, most heavy truck insurance companies require you to submit a “stated amount,” which is your best estimate of your vehicle’s current value. The stated amount should consider the age and condition of your vehicle, mileage, permanently attached equipment, special equipment you’ve added, vehicle upgrades, and engine or major component rebuilds.

Some insurance companies will provide coverage on an actual cash value (ACV) basis, calculated based on the average of your vehicle’s Blue Book, retail, resale, and trade-in values. Once those figures are input and averaged out, the vehicle’s ACV is determined.

The accuracy of stated amounts is critical because it affects how insurance companies process and pay claims. Following an accident, an insurer will pay the lesser of the stated amount and the actual cash value of the vehicle.

Towing Coverage

Towing, recovery, and storage costs for a semi-truck can be an expensive after-accident expense. Towing to a nearby garage that can repair trucks should be covered by your Physical Damage policy. Also, consider how much reimbursement for towing expenses is included in the policy. If your Physical Damage insurance does not provide enough coverage, you may have to pay a large sum out of pocket.

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.