Physical Damage Insurance

Life on the road is unpredictable, especially when you factor in traffic and severe weather. While driving a car comes with risks, operating a large commercial vehicle is an entirely different experience. Accidents can be catastrophic, leading to significant damage and financial drain.

Fortunately, insurance can help in situations like these, especially Physical Damage coverage. In this article, we will explain all about this insurance and why you should include it in your policy.  

What Is Physical Damage Insurance?


While some types of insurance have a long list of coverages, such as Commercial Auto Liability, others pinpoint more specific issues. Physical Damage is a general term for a group of insurance coverage options that protect your vehicle. It may include Collision insurance, full Comprehensive insurance, or Fire and Theft with Combined Additional Coverage (CAC).  

An overturned commercial vehicle with physical damage insurance.


In general, Collision insurance may help provide coverage for repairs or 

replacement if your vehicle rolls, overturns, or collides with an object. The Comprehensive part of the coverage is for damage due to something other than a collision, such as theft. Fire and Theft with CAC is similar but does have some limitations when it comes to non-collision incidents. 


Coverage may be included for the following types of incidents: 

  • Falling rocks and other objects 
  • Rollovers 
  • Vandalism 
  • Theft 
  • Collisions with an object, animal, or vehicle 
  • Damage due to a fire, earthquake, and other natural disasters 

Physical Damage Coverage Scenarios


Still not quite sure when a Physical Damage insurance plan would come in handy? Here are a few examples of issues that would make this type of policy beneficial. 


Example 1 

You’re driving your tow truck to get to a job when suddenly it begins to hail. The road becomes slippery and you overcorrect, causing your truck to roll over. The damage is extensive, resulting in thousands of dollars in repairs.  


You will pay your selected deductible before the Physical Damage coverage kicks in. The insurance company will then pay the remaining amount (up to the limit disclosed in your policy).  


Example 2  

After a long day on the road, you park your semi-truck at a large and busy gas station. While you’re inside getting something to eat, your vehicle is vandalized. It appears the suspect was trying to break in but damaged your door and window in the process.

After you have paid your deductible, your insurance will pay for the remaining repair costs. However, your policy specifies the limited amount for this coverage.

What Does Physical Damage Insurance Exclude from Coverage?


When you’re securing a policy for your commercial vehicle, there are many types of coverage to consider. For this reason, it’s important to understand Physical Damage insurance exclusions. This type of policy will not provide coverage for the following issues: 

  • Basic wear and tear 
  • Items within the vehicle 
  • Breakdowns 
  • Issues resulting from negligence 


You can obtain coverage for these events, but a Physical Damage policy does not include it. Click here to learn more about the different types of truck insurance we offer at American Insurance Brokers.    

Who Needs Physical Damage Coverage?


Physical Damage insurance is an important part of any commercial vehicle policy. From tow trucks hauling one vehicle at a time to massive semi-trucks transporting groceries, you probably need this type of coverage. American Insurance Brokers specializes in serving commercial truckers and fleets with vehicles including, but not limited to: 

  • Dump trucks 
  • Straight trucks 
  • Tractor/trailers 
  • Moving trucks 
  • Semi-trucks 
  • Tow trucks 
  • Hotshot trucks 
  • Flatbed trucks 
  • Tank trucks 
  • Box trucks 
  • Car carriers 


Our portfolio is extensive. If you don’t see your vehicle on this list, please contact one of our agents. If you drive a commercial vehicle, we have the tools to help you create a comprehensive policy that includes Physical Damage coverage. 

How Much Does Physical Damage Insurance Cost?


There are many elements that go into determining policy rates, which means there is no one-size-fits-all answer to this question.  


Certain high-risk trucking businesses will require more coverage, which means higher premiums. For example, a semi-truck transporting hazardous material or a car carrier with numerous vehicles in tow have much more at stake.  


Other determining factors may include: 

  • Geographic region 
  • Years of experience  
  • Driving history 
  • Size of fleet 
  • Make, model, and age of the vehicle 
  • Types of cargo and other hauling factors 
  • Interstate vs. intrastate routes 
  • Coverage limits and deductibles 

Get a free quote from American Insurance Brokers 

Every business model is unique, especially in the trucking industry. The cost of your policy will depend on several varying factors, which is why it’s best to get a quote. At American Insurance Brokers, we can provide you with an obligation-free estimate. We will ask you a few questions, assess your needs, and give you a quote based on how much coverage your business requires.

Get the Physical Damage Coverage You Need


Whether you’re an independent driver or managing a large fleet, American Insurance Brokers should be your first call. We have been connecting companies with comprehensive and competitive insurance options since 1980, making us the first choice here in the South.  


From car carriers to dump trucks, we have a reputation for finding outstanding physical damage coverage at competitive rates.  


We can help you secure a policy in the following states: 


Traveling across state lines? We know this is typical for many trucking businesses. Most policies include built-in protection while driving in another state, but this is especially important when your route is always expansive.

Generally speaking, you’ll be covered in other states if you’ve met the minimum insurance requirements in your state. However, the team at American Insurance Brokers can ensure you always have the coverage you need, wherever the road takes you.  


At American Insurance Brokers, we make it easy to achieve the peace of mind that comes with top-notch insurance. We offer a free annual policy review to all of our clients, which gives us a chance to ensure you’re getting exactly what you need. During these reviews, we analyze three important elements of insurance coverage: 

  • Confirmation of relatively low deductibles and high limits 
  • Full compliance with all federal and state filing requirements 
  • Outstanding and responsive customer service that works for you 


We are proud to work with dozens of “A” rated companies that provide the Physical Damage coverage you need when you need it the most. At the end of the day, our goal is to provide you with options that fit your needs, as well as your budget. With a focus on unmatched service and compliance, it’s no wonder we set the standard in our industry. 


Are you ready to get a free quote? Contact us today! 

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