Physical damage insurance provides protection against loss or damage to your covered vehicle resulting from an accident with another vehicle or object. Physical damage insurance is important for motor carriers and owner operators to carry and in many instances required based on if there is a lienholder.
There are several distinctions to be aware of when purchasing physical damage insurance coverage. Collision provides physical damage insurance in the event of a collision whereas comprehensive typically provides coverage to repair or replace a vehicle in an incident that is not a collision like theft, vandalism, or fire.
Value: The value of your truck/equipment could be based on a Stated Amount or Actual Cost Values. Discuss with our agency the difference between the two. It can make a difference upon a loss what the claims adjuster values the truck/equipment as.
Deductible: The deductible is the amount that you agree to pay out of pocket when you have a claim. Choosing a higher deductible is an easy way to lower the price of your insurance. However, your lienholder may have a limit of how high your deductible can be. Also, be sure you choose a deductible that you can afford to pay at any time.
Additional Physical Damage Options
Towing: Towing a semi-truck can be a major expense after an accident. The insurance should cover towing to the nearest garage that can repair trucks. The limit for a commercial physical damage policy may only be $5,000. The insurance company should offer higher limits for an additional premium.
Downtime: Downtime is one of the biggest problems that an accident may cause a trucking company. When a truck in your fleet is inoperable, you can lose thousands of dollars a day. Downtime insurance will help to offset some of your losses. It will normally help cover payments on the damaged vehicle while it is out of commission. Not all physical damage insurance policies have downtime coverage.
Emergency Expenses: When an over-the-road truck driver is involved in an accident, they will have expenses that someone involved in an ordinary accident would not have. They are likely to be far away from home when the accident occurs and will need lodging, food, and transportation. Not all physical damage insurance policies have emergency expense coverage.
Loan Gap Coverage: When your truck is in an accident, its value depreciates. In some cases, it may depreciate faster than the loan you have on it. A physical damage policy will not have to pay the lender more than the claim settlement amount. Not all commercial physical damage insurance policies have gap insurance.
Truck Rental Costs: When a driver has an accident while on the job, your company must figure out how it will get the cargo to its destination. You may have to rent a truck just to fulfill your obligation to your client. Not all commercial physical damage insurance policies have rental options.
Flatbed Truck Insurance: Tarps, binders, and chains that are essential to flatbed trucks are always getting lost or stolen, and the costs of these items can add up over time. Not all commercial physical damage insurance policies cover these kinds of losses.
Securing Your Insurance Today
Contact American Truck Insurance for you quote today. Our trusted agents can help create the perfect physical damage insurance policy for your company. We know that saving money and making sure you are ready for anything is critical to your success.