Understanding Physical Damage Insurance for Trucking

Experienced truckers must be ready for any event that could take their commercial truck off the road and jeopardize their livelihood. This includes accidents, fires, severe weather, theft, and vandalism.
One of the best ways to prepare for such unforeseen events is by securing Physical Damage coverage. This type of insurance protects your semi cab and trailer around the clock, ensuring you can return to the road quickly.

Physical Damage insurance typically includes comprehensive and collision coverage. Comprehensive insurance covers damage from non-collision incidents, including fire or explosion, theft, windstorm, hail, earthquake, flood, vandalism, and more. Collision insurance covers damage resulting from a collision with another object.

The cost of this insurance depends on several factors, including the value of your equipment, the deductible amount, and the number of additional options you select. When considering Physical

Damage insurance, there are options available to improve your protection:

• Towing: Usually included as a sub-limit.
• Storage: Generally covered as a sub-limit.
• GAP Coverage: Pays off the loan if your truck is totaled and the assessed value is less than the payoff amount.
• Federal Excise Tax Coverage: Reimburses the tax amount if a loss occurs within one year of the truck's purchase date.
• Personal Effects Coverage: Covers personal items kept in the commercial vehicle.
• Electronic Equipment Coverage: Covers electronic items permanently mounted in the vehicle.
• Downtime/Rental Reimbursement: Provides coverage if a covered loss renders the vehicle unusable for more than seven days.

Physical Damage insurance is not legally mandated. However, if you finance your vehicle, lien holders will require this insurance to safeguard their investment. Even if your loan is fully paid, your truck represents a significant asset worth protecting. Make sure that you insure your commercial truck for its actual cash value, as the insurance company will only pay the market value at the time of the loss, minus the deductible.

Investing in physical damage insurance offers long-term protection of your valuable assets and helps you maintain peace of mind while on the road. Contact the AssuredPartners Transportation, for insurance guidance from a team experienced in trucking and transportation.