Physical Damage Coverage for Commercial Trucks: Comprehensive and Collision Explained

Physical damage insurance covers the cost of repairing or replacing your commercial truck if it is damaged, destroyed, or stolen. Unlike liability insurance, which covers damage you cause to others, physical damage coverage protects your own equipment.

The Two Components

Collision coverage pays for damage to your truck caused by a collision with another vehicle, object, or the road surface — regardless of fault.

Comprehensive coverage (sometimes called "other than collision") pays for damage caused by events other than collisions: fire, theft, vandalism, hail, flooding, falling objects, and animal strikes.

Most carriers carry both. You can buy them separately, but lenders and lessors almost always require both if you have a financed or leased truck.

How Your Truck Is Valued

Physical damage claims are typically settled on an Actual Cash Value (ACV) basis — what the truck is worth at the time of loss, not what you paid for it. A 10-year-old truck may be worth far less than the cost of repairs, which is why some carriers elect not to carry physical damage on older equipment.

Some policies offer Agreed Value coverage, which fixes the settlement amount upfront. This is especially useful for specialty or custom trucks.

Deductibles

Higher deductibles mean lower premiums. Physical damage deductibles in trucking typically range from $500 to $5,000 or higher. Many owner-operators choose a $2,500–$5,000 deductible to keep premiums manageable, accepting that smaller damage events will come out of pocket.

What Is Not Covered

• Wear and tear, mechanical breakdown, and maintenance issues
• Cargo losses (that is a separate cargo policy)
• Tires (often excluded unless damaged in a covered collision)
• Personal property inside the cab (may need a separate rider)

When Physical Damage Makes Financial Sense

The general rule is to carry physical damage if the truck's value exceeds 10–15x the annual premium cost. On a fully depreciated truck with low market value, the premium may not be worth the coverage. Calculate your specific break-even point before dropping coverage.