Commercial Physical Damage is Insurance That Covers Your Own Truck
Physical Damage Insurance is the combination of Collision and Comprehensive Coverage that protects your truck.
If you’re a new Owner Operator or Motor Carrier, finding affordable commercial physical damage insurance might feel like a total headache.
But guess what? It doesn’t have to be!
Here’s a quick cheat sheet on the basics of commercial physical damage coverage for Small Truckers—everything you need to know to hit the road without breaking the bank!
Collision and Comprehensive are the two main parts of Commercial Physical Damage Insurance
But how do they work together?
Physical Damage Insurance is designed specifically to protect the overall 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 Independent Contractor Owner Operators, this insurance protects your truck—and your livelihood—against unexpected events on the road and beyond.
Fire and Theft Coverage vs Comprehensive Coverage
Sometimes you’ll hear Fire and Theft vs Comprehensive.
Fire and Theft is a much more limited version of Comprehensive coverage.
It’s more affordable Commercial Physical Damage Insurance simply because it offers far less coverage for your truck.
It covers what it says, Fire and Theft only.
That’s why it is often used as coverage for your trailer but not your truck.
Why Truckers Need Physical Damage Insurance
If you’re just getting started as an Owner Operator or Motor Carrier, keeping your truck protected is honestly a no-brainer.
Here’s why:
- Your Truck is Your Livelihood
- Your truck isn’t just a vehicle—it’s what keeps your business running.
- If you’re not hauling loads, you’re not earning money.
- That’s why having Physical Damage Insurance is so important.
- Without it, a damaged or stolen truck could leave you facing huge financial problems.
- Unless you’ve got the cash to buy a new replacement truck out of pocket, you’re going to need Physical Damage Insurance.
- Pay Off Loans or Financing
- If your truck is financed, your lender probably requires Physical Damage insurance.
- Extras like Financed Value Coverage can help you pay off your loan, even if the truck gets totaled.
- Protect Yourself from Rising Truck Prices
- Commercial truck prices are fluctuating all over the place these days, and if your truck isn’t properly insured you could be taking a big financial hit.
- By choosing the right Stated Amount, you’ll make sure you get the true value of your truck if you ever need to file a claim.
- Peace of Mind
- Trucking means spending endless hours on the road.
- Having the right coverage lets you focus on the job and tackle whatever comes your way with confidence.
How Does Commercial Physical Damage Insurance Work for Truckers?
When you buy Physical Damage Insurance, you’ll need to declare your truck’s Stated Amount—that’s the value of your vehicle when your policy begins.
This amount is the most your insurer will pay if you file a claim.
But keep in mind, the insurer will only pay up to your truck’s Actual Cash Value.
So don’t overvalue your truck or you’ll be paying for insurance you can’t collect.
How to Make Sure Your Truck Isn’t Underinsured
On the flip side, truck prices fluctuate all the time.
The Stated Amount you picked for your truck when you got your policy might not line up with what your truck’s actually worth today.
If that happens, you could end up underinsured, meaning your payout might not be enough to repair or replace your truck if something goes wrong.
Here’s how to stay covered:
- Keep your truck’s Stated Amount updated to reflect its true market value.
- Use tools like Price Digests or Truck Paper to get an accurate idea of what your truck is worth right now.
- Talk to your lender or insurance agent—they can help you figure out the best way to value your truck.
At CIS, we help our clients stay on top of their Stated Amount obligations so they can stay ahead of the game and avoid any surprises later!
For Cargo Van & Sprinter Insurance and Hot Shot Insurance, ACV or Actual Cash Value can come into play.
Not sure whether to go with Stated Amount or Actual Cash Value for your vehicle? Don’t worry—CIS is here to help you figure out what works best for you.
Affordable Commercial Physical Damage Insurance Rate #1 Secret
Your insurance credit score has a huge impact on what you pay—not just for Commercial Physical Damage Insurance, but for all your insurance coverage.
Here’s how it works: your insurance credit score helps set your premium.
Commercial Physical Damage Rates usually fall between 1.7% and 4% per $1,000 of coverage.
Got good credit? Awesome!
That means lower rates, smaller down payments, and more flexible payment options.
If your credit isn’t in the best shape right now, don’t stress too much.
Just try to get back on financial track—it really will make a difference in so many parts of your life.
The good news?
Your credit score can improve over time, and as it does, you’ll have a better shot at locking in those lower rates down the road.
Who Needs Commercial Physical Damage Insurance?
Owner-Operators with DOT Authority
If you’re a motor carrier or owner operator with your own DOT authority, you’re likely responsible for insuring all your vehicles.
This typically includes obtaining coverage for Commercial Auto Liability, Physical Damage and Motor Truck Cargo Insurance.
Owner-Operators Without DOT Authority
If you’re leased on and hauling freight for a Motor Carrier, chances are they offer a company insurance plan that includes Physical Damage Insurance.
But here’s the thing—finding your own commercial physical damage insurance might actually save you some cash.
This is especially true if you’ve got a solid credit score compared to others in the Motor Carrier’s company pool.
Pro Tip: Always compare your Motor Carrier’s insurance plan with outside quotes to make sure you’re getting the best deal for your needs.
Not sure where to start?
Give us a call at CIS—we’ll give you the honest truth about whether you’re better sticking with your Motor Carrier’s plan or snagging your own policy.
CIS (330) 864-1511
Affordable Commercial Physical Damage Insurance IS possible for new Small Truckers!
If you’re a new Owner Operator or small Motor Carrier just starting out, finding the right policy can feel overwhelming.
For years, Progressive was the top pick for new Small Truckers—they basically had the market locked down.
But now, GEICO is shaking things up with affordable commercial auto coverage for both newbies and seasoned pros.
We’re excited to be one of the few independent trucking insurance agencies representing GEICO Commercial Auto nationwide.
GEICO’s lower premiums are creating some serious competition for Progressive, helping Small Truckers save Big.
Why Go with CIS for Your Commercial Physical Damage Insurance?
At CIS, we don’t call ourselves ‘Your Owner Operator Insurance Pros’ for nothing!
Since 2002, our family-owned agency has been helping Small Truckers nationwide find the coverage they need at the lowest price.
We get small Motor Carriers and love looking out for the little guy.
Take a look at our 5-Star Google Reviews to see why so many Small Truckers count on us for their Commercial Truck Insurance.
We know our clients by name and love hearing from you, whether you’re adding a driver, need help with a tricky Cert, or just want to call and say “Hi!”
But bottom line, we’re here to help you find the best coverage without breaking the bank.
Right now, GEICO has some of the lowest rates, but next year? It might be Progressive or someone else.
The good news is, we shop around for you every single renewal, so you’re always getting the best deal.
Big changes are coming in 2025, and small trucking businesses are buzzing—are you ready?
Stay ahead by teaming up with us!
Don’t have your truck or commercial van yet?
No worries. Give us a call—we’re happy to offer free advice to help you get started with the lowest upfront costs possible.
Curious about what other coverage you’ll need to hit the road?
CIS Commercial Truck Insurance cheat sheets break down everything you need to know about the basics of truck insurance, so you can easily figure out exactly what coverage you need.
- What is Commercial Trucking Liability Insurance
- What is Truckers General Liability Insurance
- What does Motor Truck Cargo Cover
Want to start getting an idea of what your Physical Damage Insurance will cost?
Then start a quick and easy GEICO Commercial Truck Insurance Quote now.
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