Physical Damage
Coverage Guide

What Does Physical Damage Cover?

Physical damage coverage consists of two parts: collision coverage (pays to repair or replace your truck if you collide with another vehicle or object) and comprehensive coverage (pays for non-collision damage including theft, fire, vandalism, hail, flood, falling objects, and animal strikes). Together they cover your owned equipment — not cargo or third-party property.

Who Needs Physical Damage?

Any carrier with a financed or leased truck is typically required by their lender to carry physical damage coverage. Even if your truck is paid off, physical damage coverage is highly recommended — a totaled semi can represent a $100,000–$200,000 loss that would end your operation without coverage. Older trucks with lower market value may not warrant the premium versus risk tradeoff.

Key Facts About Physical Damage

• Two components: Collision (accidents) + Comprehensive (theft, weather, fire)
• Required by lenders if your truck is financed or leased
• Deductibles typically $1,000–$5,000 — higher deductible = lower premium
• ACV pays current market value; Stated Value pays a fixed agreed amount
• Trailer physical damage is usually a separate coverage or add-on

Common Questions About Physical Damage

Other Commercial Truck Coverage Types

Also see: Full Coverage Checklist  ·  Coverage by Truck Type  ·  FMCSA Requirements Guide