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While most states only require a liability insurance policy for your commercial vehicle, it’s never a bad idea to explore additional types of coverage. In many cases, additional policies are critical to protecting your business.

When most people think of damage coverage, they think of either the minimum coverage or full coverage. The minimum coverage is simply the least amount of auto coverage a driver needs to meet any legal requirements. Full coverage can mean lots of different things. Usually, having full coverage means having both liability and physical damage insurance coverage, although commercial truckers will find there are tons of additional products available to protect their trucks.

Liability and Physical Damage Insurance

Liability and physical damage insurance coverage are meant to protect against claims resulting from injuries and damage to property like fire. Typically, liability insurance is meant to repair, replace, or pay for accidents against other people.

Physical Damage Insurance is a more generic term that describes coverage that protects your vehicle and property. There are two types of physical damage insurance: collision coverage and comprehensive physical damage insurance coverage.

The Difference Between Collision and Comprehensive Insurance

Collision insurance applies when there is a collision with another vehicle or object. This kind of coverage works to repair your truck if you hit something like a guard rail, another vehicle, or a large pothole.

Comprehensive coverage comes into play when something happens to your truck. For example, instances of theft, fire, or acts of nature.

Both kinds of coverage work to repair your vehicle, but they are available in different situations. The biggest difference between these types of insurance is who or what was in control of causing the damage. If the driver is in control, the damage falls under a collision policy. If something else caused damage to a truck, then it belongs to comprehensive coverage.

How Much Does Physical Damage Comprehensive Coverage Cost?

The cost your business pays for physical damage commercial auto insurance depends on a number of factors. Insurance companies base the products on the following:

  • Type of truck(s) you own
  • Driving history
  • Type of cargo you transport
  • The length and locations of your routes

Truckers who haul goods might expect to pay between $795 to $931 per month for physical damage coverage insurance, but other factors may come into play. You can also find that some companies may offer discounts for specialized safety training, bundled insurance policies, or multiple vehicles.

The best way to understand your specific costs and make sure that your rights reserved is practiced, shopping around and getting quotes from multiple companies is a wise thing to do.

How do Insurance Companies Pay for Damages?

When a trucking company purchases a comprehensive or other insurance policy, they transfer their risk onto the company. Your rate is a reflection of how much risk they believe they are taking. Your monthly premiums, along with the premiums from every other person or company they insure, essentially goes into a big pot.

If there is an accident resulting in loss, or a fire that causes loss, or loss that comes from theft, the insurance company will make payments based on your policy. There are a variety of ways that your insurer pays for damages to your vehicle. They may have to get an estimate from an approved mechanic to reimburse you. Your insurer may also cut a check to another insurance company, to a mechanic, or to you directly.

Make sure you understand how your specific physical damage insurance policy makes payments after an incident because this is one of the best ways to make sure your rights reserved is practiced.

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