Do I need physical damage insurance?

Physical Damage Insurance for Trucks

Physical damage insurance protects your truck itself—not liability to others.

Two Types of Physical Damage Coverage

• Collision: Damage from hitting another vehicle or object
• Comprehensive: Theft, fire, vandalism, weather, animals

When Physical Damage is Required

• Financed trucks (lender requirement)
• Leased trucks (lessor requirement)
• Fleet policies (often included)

When It's Optional

If you own your truck outright, physical damage is optional. Consider:

• Truck value: Higher value = more reason to insure
• Cash reserves: Could you replace the truck if totaled?
• Age of truck: Older trucks may not be worth insuring

Typical Costs

• Cost is based on truck value and deductible chosen
• Typical premium: 2-5% of truck value annually
• $100,000 truck: $2,000–$5,000/year for physical damage

Deductible Options

• $1,000 deductible: Higher premium, lower out-of-pocket
• $2,500 deductible: Moderate premium
• $5,000+ deductible: Lower premium, higher out-of-pocket

What's Covered

• Tractor damage
• Owned trailer damage (if scheduled)
• Permanently attached equipment
• Total loss replacement