Physical Damage Insurance (Comp & Collision)
Protect your tractors and trailers against collision, theft, vandalism, fire, and weather—coverage that keeps your equipment earning.
WHAT IS PHYSICAL DAMAGE COVERAGE?
Physical Damage insurance helps pay to repair or replace your owned tractors and trailers after a covered loss. It’s typically split into Comprehensive (non-collision perils like theft, fire, vandalism, certain weather) and Collision (impact with another vehicle or object).
KEY POINTS
Stated Amount: Your limit should reflect the current value of each unit; schedules should be kept up to date.
Deductibles: Higher deductibles can lower premium—choose an amount you can afford at claim time.
Custom/Aftermarket: Add endorsements if you have customizations, specialized equipment, or permanently attached accessories.
Gap/Lease Requirements: We align coverage to lender or lease terms to protect your balance sheet.
WHO NEEDS PHYSICAL DAMAGE INSURANCE?
Physical Damage coverage is essential for:
- Owner-operators who own their tractor and need to protect their investment
- Fleet owners with multiple power units and trailers
- Lease-purchase operators whose lender requires full coverage
- Any carrier who can’t afford to replace equipment out-of-pocket after a loss
If you’re leasing or financing equipment, your lender will require Physical Damage coverage. Even if you own your equipment outright, most carriers find that the peace of mind and financial protection make it worthwhile—especially given the high cost of replacing modern tractors and specialized trailers.
COMMON ENHANCEMENTS
Towing & Labor Reimburses certain towing and labor expenses after a covered loss, subject to limits.
Rental Reimbursement / Downtime Offsets rental costs or provides a daily benefit while your unit is down after a covered loss (where available).
Electronic Equipment / Accessories Schedules aftermarket electronics, APU, tarping systems, loaders, or other permanent attachments.
UNDERSTANDING COMPREHENSIVE VS. COLLISION
Comprehensive Coverage protects against non-collision events:
- Theft of your truck or trailer
- Fire damage
- Vandalism and malicious mischief
- Weather events (hail, windstorm, flood)
- Falling objects
- Glass breakage
- Animal strikes
Collision Coverage protects against impact losses:
- Accidents with other vehicles
- Hitting fixed objects (guardrails, poles, buildings)
- Rollover or overturn incidents
- Backing accidents
Most carriers purchase both coverages together for complete protection of their equipment investment.
HOW PHYSICAL DAMAGE INSURANCE IS PRICED
Physical Damage premiums are based on several factors:
- Stated amount/vehicle value – Higher values mean higher premiums
- Deductible – Higher deductibles reduce your premium
- Age and condition – Newer units typically cost more to insure
- Type of equipment – Specialized trailers may have different rates
- Radius of operation – Long-haul vs. local delivery
- Driver experience and safety record
- Garaging location
We help you balance coverage and cost by selecting appropriate stated amounts and deductibles that fit your operation and budget.
FAQ
Most Asked Physical Damage Insurance Questions
How do I choose the right stated amount?
Use the realistic cash value of your unit (consider age, condition, and market). We’ll help you review values annually.
Are trailers covered automatically?
Owned trailers are covered when scheduled; non-owned trailers may require Trailer Interchange or a non-owned trailer endorsement.
Does Physical Damage cover my cargo?
No. Cargo is covered under Motor Truck Cargo.
What's the difference between stated amount and actual cash value?
Stated amount means you and the insurer agree on a value upfront (shown on your policy schedule). At claim time, you’ll receive up to that amount minus your deductible, subject to the actual loss. This differs from actual cash value policies that determine value at the time of loss based on depreciation.
Is Physical Damage coverage required by law?
No—liability insurance is what’s legally required. However, if you’re financing or leasing equipment, your lender will require Physical Damage coverage to protect their investment.