Physical Damage Coverage. For Less

"“I needed to call in a claim, thanks to their policies I was able to get my entire truck paid in full. My old company would of given me only half the amount needed."


Carl S | Baltimore, MD

Keep Your Fleets Safe with the Best Physical Damage Coverage

Physical damage insurance is actually an umbrella term that is used to describe a bundle of insurance policies that protect your vehicle. This insurance provides “full coverage”, which means that it covers both liability and damage. 

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 Physical damage coverage, therefore, consists of three main types of coverage:

  • Collision insurance
  • Comprehensive insurance
  • Fire and theft with Combined Additional Coverage (CAC) insurance

Thus, to fully understand the coverage, it is essential that you understand the above coverages, so let’s take a look, shall we?

Commercial Fleet Insurance FAQ’s

Collision Insurance

If you guessed that this insurance policy protects your vehicle in the case of collisions, you guessed right! Collision insurance protects your vehicle if ever it is damaged in an accident or collision, covering the repair or replacement costs, provided:

  • Your vehicle collides with another object
  • Your vehicle rolls or turns over due to the impact of the collision
Comprehensive Insurance

Also referred to as “Comp” and “Other Than Collision” (OTC) policy, comprehensive insurance fills in the gaps that collision insurance has left behind. Thus, comprehensive insurance provides coverage to your vehicle if it is damaged due to any reason other than a collision. This means that it provides coverage in the following cases:

  • Theft
  • Fire
  • Riots
  • Hail, windstorms, water, or flooding
  • Explosions, including earthquakes
  • Vandalism
  • Damage caused by birds or any type of animals
  • Breakage of glass
  • Damage due to any missiles (military missiles excluded) or falling objects
Combined Additional Coverage with Fire and Theft

This type of coverage is similar to the coverage provided by comprehensive insurance policies, except that it is more limited. This insurance only provides coverage in certain situations where damage is not caused by collisions and does not cover windshield claims. This type of insurance coverage was originally designed for the trucking industry.

It is important to remember that each type of coverage only provides coverage for specific causes of damage and can be purchased separately at the cost of your insurance costs rising. Because remember, more the coverage, higher the insurance cost!

It’s safe to assume no individual really wishes for their car to be damaged or face repairs. Therefore, when an insurance policy provides full coverage in every possible situation, it is wise to use it! If you’re looking to protect your vehicle, physical damage coverage is for you.

Additionally, if you have a loan on your vehicle or have leased your vehicle, physical damage coverage is a wise choice as it can protect you from various expenses in the case of accidents. It is even compulsory to have physical damage insurance when you lease a vehicle or take a loan to purchase it. In the latter case, the company or bank that grants the lease or loan is recorded as a “loss payee” in your account, meaning that in the case of the car being damaged beyond any repair, the company will pay the balance of the loan to help ease your financial burdens and expenses.

However, if your vehicle has been fully paid for, physical damage coverage is only optional. Despite this, it’s always great to have both collision and comprehensive coverage, because “better safe than sorry”, right?

Exceptions and Restrictions to the physical damage policy

  • Collision insurance must be purchased with either comprehensive insurance or CAC insurance.
  • Physical damage insurance does not apply to non-owned trailers. These include vehicles that are under the “trailer interchange agreement”.

The Average Cost of a Physical Damage Policy

The cost of a physical damage insurance policy depends on the value of the equipment you own, the value of deductible you have chosen and the type of coverage you choose. Additionally, in the case of trucks, the following types of coverage can be endorsed for additional costs:

  • A combined deductible for your truck as well as your trailers
  • Any coverage for personal belongings
  • Coverage for electrical equipment
  • Chains, tarpaulin, and other “binder” coverage
  • Footing the expenses for a rental truck while the owned truck is unavailable
  • Increased towing limits
Accidents can be heavy on your savings and your finances. Therefore, unless you can afford to self-insure your vehicle, a physical damage insurance will help protect your vehicle in most circumstances. Some events can be foreseen and prevented, while for all else, there is physical damage insurance!

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