Trucking insurance comes in all shapes and sizes and deciding which policy or combination of coverages is right for you can feel overwhelming. If you do not select the right type of coverage, you could leave yourself open to paying significant damages or footing the bill for expensive repairs. That is why many trucking companies choose to purchase physical damage trucking insurance.
Here is what you need to know about this type of policy, what it covers, and what you should rely on other policies for:
Physical Damage Insurance As A Combination Policy
You may be able to guess from the name that physical damage insurance helps to cover a wide range of potential physical damages to your truck. However, the physical damage trucking insurance policy does more than that. It usually works as a combination policy, including the purchase of multiple related coverages: some combination of collision, comprehensive insurance, or fire and theft with combined additional coverage (CAC).
Collision insurance is what it sounds like—a policy that covers your truck in the event of a collision, rollover, or becoming overturned. Comprehensive insurance covers damage that occurs from non-collision sources, and many policies also shield it from theft. If you do not have the budget to secure a fully comprehensive insurance policy, you can opt for fire and theft with CAC, which is similar to comprehensive coverage except that the circumstances for which it will pay are more limited. It will, for example, cover fire damage, but it will not pay for windshield cracks.
Examples Of Physical Damage Coverage
Those looking into physical damage protection for their trucks are most often worried about the damage that occurs both on and off the road. Sure, a vehicle accident can damage your truck, but so can weather disasters, fires, and more. Robust coverage will shield you from vandalism, theft, and even the cost of towing or storage if you are using those services as a result of an accident or collision.
What You’ll Need Additional Coverage For
Physical damage insurance covers a broad spectrum of potential harm, but it does not encompass everything that could cost you money when it comes to your truck. This insurance is taken out for the truck itself—not its cargo. If you want to protect the cargo that you are hauling, you will need other types of insurance. A physical damage policy will also not protect property that is not a permanent part of the truck. That includes, for example, any of the driver’s personal belongings that are traveling with them (e.g., a cell phone), chains, or tools the driver carries. However, if this is of particular concern to you, most policies offer the chance to insure these items if you are willing to pay an additional premium.
Choosing A Deductible and More
All truckers can benefit from physical damage insurance, but those who are still paying off their trucks or other obligations are particularly vulnerable to the financial repercussions of truck damage. When you select your insurance, you will be asked to choose a deductible. This number is the amount that you will pay out of pocket before the insurance starts to pay for the costs of the claim.
A lower deductible will cost more in premiums. A higher deductible means that you will pay more out of pocket before insurance kicks in, but it can also have a dramatic impact on the cost of your monthly insurance premiums. In the end, the right deductible for you is one that you are confident you can pay out of pocket immediately.
The deductible is not the only thing you will need to tackle before you are approved for physical damage insurance. The insurance agent will also ask that you submit an estimate of the current value of the truck that you are insuring. Insurance will use this to calculate how to pay out on a claim if the truck is totaled. The vehicle’s age, as well as any valuable equipment attached to it, should all be factored into this calculation.
Trust The Pros To Help You Create The Perfect Blend Of Trucking Insurance Coverage
Choosing the right trucking insurance is hard, but it does not have to be. The experts at Burton & Company would be happy to sit down with you and help you craft the perfect combination of insurance policies to protect your truck against its highest risks. Reach out to set up an appointment to get started or to ask any questions that you have about trucking insurance, how it works, and how you can factor it into your budget.
