What physical damage covers
Physical damage covers loss or damage to your own tractor and trailer. It's typically written in two parts:
- Collision — damage from striking another vehicle or object, or from an overturn.
- Comprehensive (sometimes called specified perils or "other than collision") — fire, theft, vandalism, hail, falling objects, animal strikes, and weather events.
It is not legally required by FMCSA. But if your equipment is financed or leased, your lender will require it — and if you own it outright, it's still the coverage standing between you and buying a replacement truck out of pocket.
The part that costs people money: how your truck is valued
Read your declarations page. The difference between actual cash value and stated value is the difference between what you think you're insured for and what you actually get paid.
- Actual cash value (ACV) — the insurer pays the depreciated market value at the time of loss, regardless of what you paid or what you owe.
- Stated value — you declare a value at policy inception. Most stated value policies pay the lesser of the stated amount or actual cash value, which surprises people who assumed the stated number was guaranteed.
- Agreed value — less common in trucking, but this is the one where the agreed figure is what gets paid.
Two failure modes follow from this. Undervaluing your truck means a total loss doesn't replace it. Overvaluing it usually just means paying premium on value you'll never collect.
Gap exposure on financed equipment
If you owe more on the truck than it's currently worth, a total loss can leave you still owing the lender after the insurance check clears. That gap is yours unless you've specifically addressed it. Worth asking about before you need the answer.
What physical damage does not cover
- The freight. Cargo is a separate coverage. See the cargo guide →
- Injury or damage to others. That's liability.
- Mechanical breakdown and wear. Insurance covers sudden accidental loss, not maintenance, engine failure or normal deterioration.
- Equipment you don't own. A trailer or chassis pulled under an interchange agreement needs trailer interchange coverage.
- Undisclosed operations. If you run off-road or oilfield work that wasn't disclosed, expect coverage questions at claim time.
Choosing a deductible honestly
Physical damage deductibles are usually the largest on a trucking policy, and raising yours is one of the more effective ways to reduce premium. The test is simple: could you write that check tomorrow and still keep operating? If not, the savings aren't real — you've just moved the risk onto the part of your business least able to absorb it.
Common questions
Is physical damage insurance required for commercial trucks?
Not by FMCSA. However, if your truck or trailer is financed or leased, your lender will require it. Owners who have paid off their equipment often keep it because it is the only coverage that pays to repair or replace their own truck.
What is the difference between stated value and actual cash value?
Actual cash value pays the depreciated market value at the time of loss. Stated value means you declare a value at policy inception, and most stated value policies pay the lesser of that stated amount or the actual cash value. Agreed value, which is less common in trucking, pays the agreed figure.
Does physical damage insurance cover the cargo I'm hauling?
No. Physical damage covers your tractor and trailer only. Freight is covered by motor truck cargo insurance, which is a separate coverage.
Not sure what you need?
Tell us how you run and we'll shop it across our carriers — or just ask a question. No forms required.