Physical Damage Insurance

Physical Damage Coverage Scenarios

Still not quite sure when a Physical Damage insurance plan would come in handy? Here are a few examples of issues that would make this type of policy beneficial.
While some types of insurance have a long list of coverages, such as Commercial Auto Liability, others pinpoint more specific issues. Physical Damage is a general term for a group of insurance coverage options that protect your vehicle. It may include Collision insurance, full Comprehensive insurance, or Fire and Theft with Combined Additional Coverage (CAC).

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What Is Physical Damage Insurance?

While some types of insurance have a long list of coverages, such as Commercial Auto Liability, others pinpoint more specific issues. Physical Damage is a general term for a group of insurance coverage options that protect your vehicle. It may include Collision insurance, full Comprehensive insurance, or Fire and Theft with Combined Additional Coverage (CAC). In general, Collision insurance may help provide coverage for repairs. If your vehicle rolls, overturns, or collides with an object. The Comprehensive part of the coverage is for damage due to something other than a collision, such as theft. Fire and Theft with CAC is similar but does have some limitations when it comes to non-collision incidents.

Physical Damage Coverage Scenarios

Still not quite sure when a Physical Damage insurance plan would come in handy? Here are a few examples of issues that would make this type of policy beneficial.

After a long day on the road, you park your semi-truck at a large and busy gas station. While you’re inside getting something to eat, your vehicle is vandalized. It appears the suspect was trying to break in but damaged your door and window in the process. After you have paid your deductible, your insurance will pay for the remaining repair costs. However, your policy specifies the limited amount for this coverage.

What Does Physical Damage Insurance Exclude from Coverage?

When you’re securing a policy for your commercial vehicle, there are many types of coverage to consider. For this reason, it’s important to understand Physical Damage insurance exclusions. This type of policy will not provide coverage for the following issues:

Basic wear and tear

You’re driving your tow truck to get to a job when suddenly it begins to hail. The road becomes slippery and you overcorrect, causing your truck to roll over. The damage is extensive, resulting in thousands of dollars in repairs. You will pay your selected deductible before the Physical Damage coverage kicks in. The insurance company will then pay the remaining amount (up to the limit disclosed in your policy).

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Items within the vehicle

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What Does Physical Damage Insurance Exclude

Basic wear and tear

Physical Damage insurance is an important part of any commercial vehicle policy.

Items within the vehicle

Certain high-risk trucking businesses will require more coverage, which means higher premiums.

Breakdowns

Whether you’re an independent driver or managing a large fleet

Issues resulting from negligence

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Insurance Products

We are a leading provider for specialized transportation insurance for :

01 PRIMARY AUTO LIABILITY

Primary Auto Liability insurance protects the insured from legal liability related to owning, maintaining, or using an insured vehicle. It covers damages for bodily injury or property damage caused by the insured, along with legal defense costs.
Who Needs This Insurance?
Any operator with authority.

02 TRANSPORTATION OPERATIONS

Every transportation operation has a unique situation that needs to be addressed in evaluating, and protecting, the risks in your business. We can tailor a risk management program that will fit your needs, cover liability exposuresand business assets, and meet regulatory requirements.

03 Physical Damage

Physical Damage/Collision insurance provides protection to the vehicle in case of an accident. Collision and damage pays to repair or replace the covered vehicle in the event of collision or overturning. WHO NEEDS THIS KIND OF INSURANCE?
Anyone owning tractors or trailers wanting to protect their investment

04 Motor Truck Cargo

Motor Truck Cargo insurance provides coverage on the freight hauled on a for-hire basis. It covers liability for cargo that is damaged as the result of fire, collision or striking a load.
WHO NEEDS THIS KIND OF INSURANCE?

Frequently Asked Questions About Physical
Damage Insurance

Physical Damage Insurance typically does not cover: Normal wear and tear or maintenance issues Mechanical or electrical breakdowns (unless they result from a covered incident) Damage to personal items inside the vehicle Liability for injuries or property damage to others

Physical Damage Insurance generally includes two types of coverage: Collision Coverage: Pays for damage to your vehicle or equipment resulting from a collision with another vehicle or object. Comprehensive Coverage: Pays for damage caused by non-collision events like theft, fire, flood, hail, vandalism, or falling objects.

Physical Damage Insurance is not required by law, but it may be mandatory for financed or leased vehicles, as lenders want to protect the asset. Businesses with high-value equipment or vehicles may also require this coverage in certain contracts.

Some Physical Damage policies extend to rental vehicles or equipment used for business purposes, but this depends on the insurer. It may also require purchasing a rental endorsement or coverage add-on.

Yes, many insurers offer bundle options, allowing you to combine Physical Damage Insurance with Liability, Cargo Insurance, or other commercial coverages. Bundling can lead to savings and simplified policy management.

If the damage is so extensive that repair costs exceed the asset’s value, the insurer may declare it a total loss. In this case, they’ll provide a payout based on the asset’s actual cash value (market value minus depreciation) at the time of the loss, or replacement cost, depending on your policy terms.

Physical Damage Insurance is an umbrella term that typically includes both Comprehensive and Collision coverage. Comprehensive covers non-collision events, while Collision only covers accidents involving collisions with other vehicles or objects.

For businesses, Physical Damage Insurance premiums are generally tax-deductible as a business expense. Personal policies for privately-owned vehicles or equipment typically do not qualify. Consulting with a tax professional can clarify your specific situation.

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Physical Damage Insurance

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