Physical Damage
WHAT IS PHYSICAL DAMAGE COVERAGE?
Physical damage coverage is crucial for motor carriers and owner-operators, especially if there’s a lienholder involved. This insurance safeguards you against losses or damages to your covered vehicle in the event of accidents involving other vehicles or objects. When purchasing physical damage insurance coverage, it’s essential to understand several key distinctions. These may include the types of coverage offered, such as collision and comprehensive, as well as deductible amounts and coverage limits. Additionally, factors like the age and condition of your vehicles can impact the cost and extent of coverage needed.
HOW MUCH IS COVERED BY PHYSICAL DAMAGE?
In the event of a physical damage loss, the settlement typically covers the lesser of the actual cash value or the cost of repair, minus any deductible. Deductibles for these policies are commonly set at $1,000. Actual cash value is determined based on the equipment’s worth at the time of loss, considering factors such as depreciation and market value fluctuations.
WHAT DOES PHYSICAL DAMAGE EXCLUDE?
Exclusions in a physical damage policy often exist because coverage for those specific situations is provided by another form of coverage or policy. For instance, non-owned trailers requiring physical damage coverage per a contract with the shipper are typically not covered under physical damage policies. However, trailer interchange coverage extends coverage in this scenario.
GET PHYSICAL DAMAGE COVERAGE FOR A COMMERCIAL TRUCK
Purchasing physical damage coverage can be pricey, and it’s important to make sure it covers everything you need. Don’t just take the first quote you hear: Shop around until you find a policy that works best for you. As an independent insurance agency, we have access to an average of 30+ carriers and can help you find a market that fits your company.