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How Good is Your Physical Damage Truck Insurance?

Posted by David Ross on Sun, Aug 26, 2018
Is your insurance for physical damage to your truck adequate or lacking? Trucking insurance tips for Philadelphia, Berks County, Lehigh County, Pittsburgh, Erie, PA and beyond.Buying or leasing a truck is a significant investment, and trucks are the lifeblood of truckers and trucking companies. For many truckers, the loss of their vehicle would mean the loss of their job and their income. For a large trucking company, the loss of a truck may not be as significant, but it would still negatively impact their business. That’s where Physical Damage Truck Insurance comes in.

Imagine: your truck is damaged in a fire. Would you have enough in savings to pay for the repairs needed to get that truck back on the road? What if your truck were totaled in an accident? Would you have enough in savings to replace it? These are things you need to consider, and for most individuals and even businesses, the answer is no, not even close.

So, thank goodness for Physical Damage Insurance, which can help keep you in business even if your truck is damaged.

What is Physical Damage Insurance?

It's pretty much exactly what it sounds like. Physical Damage Insurance helps cover the cost of repairing or replacing a purchased or leased item – in this case, your truck – in the event of a loss. There are two basic types of Physical Damage Insurance: comprehensive and collision.

Commercial Vehicle Collision Insurance

Collision insurance covers damages and loss to a vehicle that is caused by a collision with another vehicle or object, a roll, or an overturn. If your truck is totaled, collision coverage will pay you the estimated current cash value - less your deductible - to replace it. This type of coverage tends to be the more expensive of the two and has a more significant impact on the cost of your insurance if you experience a loss just because it's more likely to happen.

Comprehensive Truck Insurance

Comprehensive insurance will help you pay for the repair or replacement of your commercial vehicle if the damage is caused by something other than a collision, roll, or overturn. It covers damage caused by fire, theft, hail, vandalism, collisions with animals, etc.

Neither type of insurance will cover general wear and tear such as worn brake pads, blown transmissions, or rusted parts.

The cost of Physical Damage Insurance depends on the type of truck, the goods carried, the number of years' experience a driver has, claims history, your deductible and more.

Other Types of Physical Damage Coverage

A lender or lessor may require you to have Physical Damage insurance, but it may not be enough to cover your needs. Here are other types of Physical Damage coverage you may want to consider:

Fire and Theft with Combined Additional Coverage (CAC)
This type of physical damage coverage is a limited form of Comprehensive insurance designed especially for heavy-duty trucks. It's also known as Limited Comprehensive or Specific Perils Insurance. 

Gap Coverage
Gap coverage pays the difference between the amount of money you still owe on the lease or loan for your commercial vehicle and the actual cash value (ACV) of the vehicle. The ACV of your truck is the actual market value of the truck. Unlike personal lines of insurance, commercial insurance does not offer replacement value (the amount it would cost you to actually replace the vehicle).

Here's an example: You purchased a new vehicle for $40,000 and then drove it thousands of miles for a year or two. At this point, your vehicle has an ACV of $30,000. But what if you still owe $35,000 on your loan? Gap insurance will cover that $5,000 gap (minus your deductible).

Endorsements

  • Insurance endorsements – Aka riders - are additions to existing insurance policies that change a policy's coverage to help fill holes in the basic coverage. Some endorsements available with commercial Physical Damage Insurance include the following:
  • Coverage for your personal belongings
  • Coverage for electronic equipment
  • Payment for a rental truck while your vehicle is being repaired
  • A single deductible for both truck and trailer
  • Increased towing limits
  • Roadside assistance

Get a Great Deal on Truck Insurance

Get a great deal on commercial trucking insurance.At American Insuring Group, we carefully analyze your needs and the risks associated with your trucking business. Then, we compare the cost of that coverage among many competing insurance companies to make certain that you receive a great deal. The result: quality insurance coverage for your needs at the best price.

Call American Insuring Group at (610) 775-3848 or (800) 947-1270 to speak with one of our trucking insurance specialists or contact us online.

Tags: Trucking Insurance, truck insurance, Physical Damage Truck Insurance, Commercial Vehicle Insurance

Physical Damage Truck Insurance - Do You Have Enough?

Posted by David Ross on Sun, Jul 16, 2017

As we’re sure you’re aware, buying or leasing a truck is a huge investment. Many truckers, use most or all of their savings to purchase their vehicle.

Tips on Physical Damage Truck Insurance in PennsylvaniaNow, what would happen if your truck was damaged, stolen, or totaled in an accident? Would you have enough money to cover the repairs or replace the truck? What would it mean to your livelihood?

Are you certain your truck insurance is adequate to keep you financially secure if the worst were to happen? 

These are all scary questions, but they’re also real possibilities.

Getting Proper Insurance for Your Truck

The good news is that you can protect yourself from most damages your truck may incur with physical damage truck insurance. If you have a loan on your truck or you lease your truck, physical damage insurance is probably required. But even if you own your truck outright, you’ll want to consider physical damage insurance to protect your investment (and your livelihood).

2 Types of Physical Damage Truck Insurance

There are two different parts to physical damage truck insurance: collision insurance and comprehensive insurance. Collision Insurance pays for damages incurred if your truck collides with another vehicle or object. In the event of a collision, collision insurance will pay to repair or replace your truck. Comprehension Insurance pays for other types of damage your truck may incur, such as vandalism, theft, collision with an animal, glass breaking, fire, and more.

Physical Damage Insurance Considerations

Here are some important things to consider when shopping for physical damage truck insurance:

  1. Stated Amount - You will need to provide the stated amount – your best estimate of the value of your truck – if you are adding comprehensive insurance. The stated amount should be based on the make and model of your truck, mileage, upgrades, and comparable sales data. The stated amount will have a big impact on how much you pay in premiums, so it’s a good idea to work with a good insurance agent to determine the proper value.

  2. Actual Cash Value - The amount you will receive on a physical damage truck insurance claim is based on the Actual Cash Value (ACV) of your truck, which means the market value of your truck. Unlike personal lines of insurance, replacement values are not available for commercial policies.

  3. Deductibles - One way to reduce your premiums is to increase your deductible. You should determine a dollar amount that you would be comfortable paying in the event of a claim.

  4. Endorsements – There are certain things that a basic trucking physical damage policy may not cover, that an endorsement will. Endorsements you may want to consider are a single deductible for your truck and trailer, personal belongings coverage, electronic equipment coverage and a rental truck while your vehicle is getting repaired or replaced.

 

Let's Talk About Your Truck Insurance

Contact us about Physical Damage Truck Insurance protection in PennsylvaniaProtect your truck and your livelihood with physical damage insurance by giving American Insuring Group a call at (800) 947-1270 or (610)775-3848 or contact us online to learn more about both collision and comprehensive insurance for your truck.

We specialize in PA Truck Insurance, so whether you are in Philadelphia, Reading, Allentown, Harrisburg, Pittsburgh, Erie or elsewhere, we'll find you the best deal on insurance. That's because our independent insurance agents are free to shop and compare lots of competing insurance quotes, so you can count on getting great coverage at a great price.  

Contact us today!

Tags: Trucking Insurance, truck insurance, Physical Damage Truck Insurance