Trucking Physical Damage Insurance Coverage, Definition, & More

Thang Truong
Thang Truong
Updated on:

Insurance can be a confusing topic, but it doesn’t have to be. With some basic knowledge, you can feel empowered to purchase the exact insurance coverages you need—both for your private automobile and your commercial truck business. If you are confused about which insurance coverages you need, one tip is to contact your insurance agent or an insurance broker. Before you begin your search for the right insurance policy, let’s look at physical damage insurance to help you take the mystery out of that insurance coverage. 

What is physical damage insurance?

Physical damage insurance is the term that insurance companies use to refer to coverage that pays to fix or replace a damaged truck (or car). Suppose you’re talking about your commercial truck insurance policy. In that case, your rig will be covered by your physical damage insurance policy 24/7, regardless of whether you are using it for business or personal use. 

What is trucking physical damage insurance? 

Physical damage insurance for trucks is similar to that of the physical damage coverage for your private automobile coverages. Consider what would happen if your truck was involved in an accident and you lost either the rig or the trailer due to the extensive damage. Would you be able to repair or replace it with the money you have on hand? It would be almost impossible to repair or replace a significant expenditure like a rig out-of-pocket. 

That is where physical damage insurance for trucks is a beneficial policy to have. The coverages of the policy help you to pay for damages caused by accidents or other disasters. The insurance is typically broken into comprehensive and collision coverages. Your insurance broker or agent can help you determine if you have adequate insurance coverage. 

Who needs trucking physical damage insurance?

Having physical damage insurance for your truck can help make sure your vehicle is fully protected, and it can help you be able to make repairs or get a new truck if you have the misfortune to be involved in an accident. Physical damage insurance is typically a requirement for vehicles that are leased or that have a loan attached to them. Physical damage insurance coverage is usually optional if you own your truck outright; however, it could still be a good choice for you to have it. 

What does a physical damage insurance policy cover?

Physical damage insurance policies cover damage or losses from accidents with other vehicles, but they can also protect your vehicle in the following instances: 

  • Rollovers
  • Vandalism
  • Hitting an animal on the road
  • Falling objects, such as tree limbs
  • Fire
  • Earthquakes
  • Weather events, such as hailstorms

Physical damage insurance policies do not cover medical expenses, stolen property, legal fees associated with a claim of fault, lost income resulting from an accident, or damages to the other car involved in the accident. Those instances require different kinds of insurance. 

Unless your insurance policy states otherwise, your physical damage insurance will not cover damage or loss that occurs due to war, stunt driving, racing, depreciation, blowouts or other tire-related damages, breakdowns in electrical or mechanical systems, freezing, or normal wear and tear. Exceptions apply in the case of a stolen vehicle. Your insurance agent or broker can help you determine what coverages you have and what coverages you need. 

Collision and comprehensive physical damage insurance

Two kinds of insurance are usually included in a physical damage insurance policy. Those two kinds of insurance coverages are comprehensive and collision insurance. While they are lumped together under physical damage insurance, there is a bit of a difference between the two coverages. 

Even for your big truck, collision coverage is coverage that handles the costs associated with damages that occur when you collide with another car or an inanimate object. Comprehensive insurance handles costs associated with repairing the damage that is caused by something out of your control, such as vandalism or a natural event like the weather. 

Do all insurance companies have physical damage insurance policies?

If an insurance company provides commercial trucking insurance, they typically offer physical damage policies. While these policies aren’t required unless you purchase or lease your truck, it’s a good idea to invest in the coverage. These coverages help to protect your livelihood. 

Not all physical damage insurance policies are created the same. There are differences in coverage limits and pricing. Comparing equal coverages when choosing your physical damage insurance policy is essential. has compiled a list of five of the top physical damage insurance companies for you to compare coverages and rates if you’re just beginning to search for coverage. 

Best trucking physical damage insurance companies

Many insurance companies offer trucking physical damage coverage. It can be confusing and time consuming to find the best companies for your situation. We have done the research and recommend the best trucking physical damage insurance companies for your selection.

  • Progressive: Best overall with over 40 years of experience
  • Simply Business: Best for comparison shopping and best value
  • Sentry: Most trucking expertise. Affiliated with several trucking groups. Available in all 50 states
  • EIB Direct: More coverage than federal limits. Specialty is high-risk policies for truckers
  • Best for an extensive network of knowledgeable agents

Final thoughts

Physical damage insurance coverage is not a requirement unless you are purchasing or leasing your truck. However, having this kind of insurance policy protects you from the costs stemming from damages to your truck in an accident or other damaging event. It’s wise to maintain physical damage insurance coverage to protect your physical property and your livelihood. 

Physical damage insurance coverage includes collision and comprehensive coverage. These insurance coverages pay for repairs or replacement costs for damages incurred in an accident or other sort of negative event. A physical damage insurance policy covers damages from a wreck with another vehicle, rollover accidents, vandalism, or weather issues. 

There are some things that a physical damage policy doesn’t cover. For example, damages due to a blowout are usually not covered. Neither are damages that occur when the driver has been racing or stunt driving, or costs incurred from mechanical or electrical breakdowns. Your insurance agent or broker can explain any limits to your physical damage insurance policies.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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