Physical Damage is Insurance That Protects Your Own Truck
Physical Damage Insurance is a combination of Collision and Comprehensive Coverage.
Here’s a quick cheat sheet:
Collision vs Comprehensive Truckers Physical Damage:
Physical Damage Insurance is designed specifically to protect the value of your own truck in case of damage.
- Collision Coverage protects your truck if it is damaged due to a collision with another vehicle, object, or if it overturns.
- Comprehensive Coverage covers damages that occur due to non-collision events like theft, fire, vandalism, windstorms or animal-related incidents.
For owner-operators, this type of insurance ensures that your truck—your livelihood—is safeguarded against unpredictable events on the road and beyond.
What about “Fire and Theft” Coverage?
Fire and Theft is a much more limited version of Comprehensive coverage.
It only covers damages caused by specific events like fire or theft and is often used for trailers rather than the truck itself.
Why Do Truckers Need Physical Damage Insurance?
If you’re an owner-operator or independent small trucker, protecting your truck is non-negotiable.
Here’s why:
- Your Truck is Your Livelihood
Your truck is more than a vehicle; it’s what keeps your business moving.
Without insurance, you could face financial ruin if your truck is damaged or stolen.
- Pay Off Loans or Financing
If your truck is financed, Physical Damage insurance is often a lender’s requirement.
Additional coverages like Financed Value Coverage can ensure you’re equipped to pay off your loan, even in cases of total loss.
- Safeguard Against Rising Truck Values
With the price of commercial trucks fluctuating, underinsuring your vehicle can leave you at significant financial risk.
Choosing the correct Stated Amount (more on this below) ensures you receive the truck’s true value in the event of a claim.
- Peace of Mind
Trucking involves countless hours on the road.
Knowing you’re covered helps you focus on the job and stay prepared for the unexpected.
How Does Physical Damage Insurance Work?
When purchasing Physical Damage Insurance, you’ll need to declare your truck’s Stated Amount—the value of your vehicle at the start of your policy.
This is the maximum amount your insurer will pay in the event of a claim.
The insurance company will only pay up to the Actual Cash Value of your Truck.
How to Avoid Being Underinsured
If truck prices increase, the Stated Amount you declared when your policy began may no longer reflect the truck’s current market value.
This could lead to being underinsured, meaning your payout might be insufficient to replace or repair your truck.
To stay adequately insured:
- Stay on top of the Stated Amount of your truck to match its true market value.
- Use tools like Price Digests or Truck Paper to get an accurate sense of your truck’s current worth.
- Check with your lender or insurance agent for advice on appropriate valuation methods.
The Role of Credit in Determining Your Rate
When it comes to Physical Damage Insurance, your credit score plays a surprisingly significant role.
Your premium is determined by your insurance credit score, and rates can range from as low as 1.7% to as high as 4% per thousand dollars of coverage.
Good Credit? You may qualify for lower rates and additional perks, such as lower down payments or more flexible payment options.
Bad Credit? Don’t worry—your scores can improve over time. Focus on improving your credit to secure better rates in the future.
Who Needs Physical Damage Insurance?
Owner-Operators with Authority
If you’re a motor carrier or owner-operator with your own authority, you’re likely responsible for insuring all your vehicles.
This typically includes obtaining coverage for Liability, Physical Damage, and Motor Truck Cargo Insurance through a professional Trucking Insurance Broker.
Owner-Operators Without Authority
If you haul freight for a motor carrier, they may offer you a company insurance plan, which often includes Physical Damage Insurance.
However, choosing your own insurance plan can sometimes save you money, especially if your credit score is higher than others in the company pool.
Pro Tip: Compare your motor carrier’s insurance offering with external quotes to ensure you’re getting the best deal for your specific situation.
Where do I find affordable Physical Damage Insurance for my Truck?
For years, finding affordable commercial trucking insurance—including Physical Damage—has been a struggle.
And if you’re just starting out? Let’s just say it’s been tough.
That’s why it’s so exciting that GEICO has entered the game for new Owner Operators and Motor Carriers.
We’re proud to be one of the few independent trucking insurance agencies representing them.
Want to see your options? Talk to one of our friendly Trucking Insurance Brokers.
She’ll compare rates for you and find the best fit.
Right now, GEICO might have the lowest premiums—but next year, who knows? It could be Progressive.
The best part? She’ll shop around for you every year at renewal time, so you don’t have to.
Since 2002, we’ve been a small family-owned agency known for looking out for the little guys.
Check out our CIS 5 Star Google Reviews.
Then take a few minutes to check out what kind of Commercial Trucking Insurance you’ll need to get rolling.
- What is Commercial Trucking Liability Insurance
- What is Truckers General Liability Insurance
- What does Motor Truck Cargo Cover
Even if you’re just getting started and don’t have your truck or van yet, give us a shout—we’re here to help you get on an affordable road!