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physical damage insurance

PHYSICAL DAMAGE Truck INSURANCE

TRUCK INSURANCE COVERAGE TO GET YOU BACK ON THE ROAD 

Physical Damage insurance is the part of your trucking insurance policy that covers your commercial truck and equipment when you have an accident. It pays to fix or replace the tractors, trailers, and equipment you own or lease that are damaged in a crash. It covers your truck 24/7.

WHAT’S COVERED BY PHYSICAL DAMAGE INSURANCE?

When your truck is in an accident or you have an equipment loss not including mechanical breakdown, Physical Damage insurance includes two types of protection:

  • Collision coverage, which covers losses from an overturn or accident, and
  • Comprehensive coverage, which covers other non-collision-related equipment losses. This is coverage for almost any damages incurred by a truck, including fire, natural disasters, wind damage, animal-related damage, glass breakage, robbery, theft, and vandalism. 

Great West’s Physical Damage insurance automatically includes coverage for these accident-related expenses:

  • Truck and equipment repair or replacement
  • Towing expenses
  • Tarps, chains, and binders damaged on an owned trailer
  • Payments for certain fluids
  • Downtime coverage
  • Single Deductible endorsement
Physical Damage insurance is the coverage that helps you get your truck back on the road.
PROTECT YOUR TRUCK + EQUIPMENT

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WE PUT YOU FIRST

OUR REPAIR SHOP RELATIONSHIPS

Getting your tractor trailer and equipment back in action quickly means being able to find a qualified, reliable repair shop. Our long-term relationships with established repair facilities, towing companies, and parts suppliers mean your equipment will get the attention it deserves no matter where you are.

Great West can also accommodate special situations in which your own maintenance staff is qualified to make repairs.

Truck mechanic - physical damage insurance
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DOWNTIME COVERAGE

If your truck is in the repair shop for an extended period of time, you’re not making money. To protect you if your truck is not drivable, we include Downtime coverage that provides you $450 per week for a maximum of eight weeks or until the repairs are completed and the vehicle is determined to be roadworthy, whichever occurs first.

Great West includes Downtime Coverage as a part of our motor carrier Physical Damage and Non-Trucking Use Physical Damage coverage at no extra charge to you. It is not available on Business Auto coverage.

Downtime Coverage has a 35-day waiting period that begins when three conditions are met:

  1. Great West has given the approval to repair;
  2. You have given the repair facility the approval to repair; and
  3. Your equipment is out of service for repair because of a covered loss and is in the custody of the repair facility.

There is no Downtime Coverage for a stolen vehicle, a total loss or constructive total loss, or while reserve or spare trucks are available.

SAVE OUT-OF-POCKET COSTS

PHYSICAL DAMAGE SINGLE DEDUCTIBLE ENDORSEMENT INCLUDED

When you have an accident and sustain damage to your tractor, trailer, and cargo, you could have as many as three Physical Damage insurance deductibles that apply. Great West provides a Single Deductible endorsement, which allows you to have one deductible, reducing your out-of-pocket costs.

Best yet, our Single Deductible endorsement is offered at no cost to you as a part of our Physical Damage policy.

HOW A SINGLE DEDUCTIBLE ENDORSEMENT WORKS

For example, in a typical accident, you could have a deductible of $2,500 on your tractor, $2,500 on your trailer, and $2,500 on your cargo. If it were a covered loss, instead of $7,500 in deductibles that could apply in this claim, Great West’s single deductible would use the highest of the available deductibles — in this case, $2,500.

smiling trucker on the road - physical damage insurance
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OTHER OPTIONAL ENDORSEMENTS

PHYSICAL DAMAGE POLICY CUSTOMIZATIONS

Endorsements are ways to modify your trucking insurance policy. Great West offers a number of optional endorsements to its Physical Damage coverage. These give you added flexibility to customize your policy to meet the specific operational needs of your trucking business. 

TRUCKING PHYSICAL DAMAGE OPTIONAL COVERAGES

Choice Coverage® Plus endorsement

A bundled package that includes towing, electronic equipment coverage, rental reimbursement, emergency expenses, mechanical breakdown, and miscellaneous equipment coverage.

Electronic Equipment Coverage

Covers electronic equipment such as computers, and other communication devices on or in a covered auto.

Rental Reimbursement

Covers the cost of renting replacement tractors, trucks, and trailers when a loss occurs to equipment covered under your Physical Damage policy.

Trailer Interchange coverage

Extends Physical Damage coverage to trailers covered under a written intermodal agreement.

Comprehensive coverage

Covers loss to a covered truck or its equipment from any cause except collision or overturn. This includes damage from a hazardous materials leak or from cargo shifting.

Lease Value & Finance Value coverage

Cover the cost to pay off a lease or loan when the cost exceeds your unit’s actual cash value.

Hired Auto Physical Damage Coverage

Covers the hired auto physical damage exposures an insured may have for commercial trucks they hire or borrow.

Physical Damage Location coverage

This coverage is available if you need to apply a maximum or aggregate for all deductibles as a result of a single-covered Physical Damage loss.

INSURANCE FOR HIRED OR RENTED VEHICLES

HIRED AUTO PHYSICAL DAMAGE COVERAGE

When you hire or rent a commercial truck, you are responsible for any damage to it. That’s why Great West offers Hired Auto Physical Damage coverage to protect you from the loss exposure you may have for autos your business hires or borrows. A hired auto is a covered auto owned by someone other than you, hired by or rented to you, for a special purpose on a short-term basis. This coverage can be purchased for trucks, tractors, and trailers, private passenger-type autos, or both.

There are three optional coverages available:
  1. Comprehensive
  2. Specified Causes of Loss
  3. or Collision.

While your fleet may be insured for Specified Causes of Loss, you should consider buying Comprehensive and Collision as your responsibility for damage to hired autos may require broader protection.

Three important points about this coverage:
  1. One limit of insurance applies to all covered trucks for the actual cash value of all trucks combined.
  2. The definition of a covered trailer includes shipping containers.
  3. Our coverage does not pick up damages for loss of use of a hired truck that may be asserted by the owner. That is a business risk you assume.

When determining the total limit of insurance, you should purchase a limit for the worst-case scenario. Since this coverage is separate from what you are buying for your owned or leased equipment, you may also choose a deductible different from that which applies to owned units.

PUT A CAP ON YOUR DEDUCTIBLES

PHYSICAL DAMAGE LOCATION COVERAGE

Great West can help you minimize single-location physical damage losses your business could face. Our trucking Physical Damage Location coverage endorsement is available if you need to apply a maximum or aggregate for all deductibles as a result of a single-covered physical damage loss. We offer this coverage endorsement by applying a per-loss deductible.

For example, 20 parked tractors and 50 parked trailers suffer hail damage of $5,000 per unit. If your Physical Damage policy deductible is $1,000 for each, your out-of-pocket would be $70,000. With the deductible cap created by the Physical Damage Location coverage endorsement, you can limit the deductible to $20,000, capping your loss at a more manageable level.

Blue semi truck - physical damage location coverage
WE UNDERSTAND TRUCKING OPS

THE ADDED BENEFITS OF CHOOSING GREAT WEST

Great West offers trucking companies various Physical Damage coverage deductibles, self-insured retentions, location-specific catastrophic coverage, and other flexible options to match how you operate your business. And we can break down your premium into monthly payments based on gross revenue, mileage, or the value of your equipment. 

Your questions about trucking

Frequently asked questions

What types of incidents or damages does Physical Damage insurance typically cover for commercial trucks?
Physical Damage insurance for commercial trucks typically covers a range of incidents and damages, including collisions, accidents, vandalism, theft, fire, and weather-related damage. It provides protection for the physical damage or loss of the insured truck and its equipment.
Are there limitations or exclusions within Physical Damage coverage for commercial trucking insurance?
Physical Damage coverage for commercial trucking insurance may have limitations or exclusions that vary depending on the specific policy. Common limitations or exclusions may include wear and tear, mechanical breakdowns, damage from illegal activities, and certain high-risk cargo types.
How are the value of the truck and the coverage amount determined for Physical Damage insurance in trucking policies?
The value of the truck and the coverage amount for Physical Damage insurance in trucking policies are determined based on the actual cash value (ACV) of the insured truck. ACV is calculated by considering factors such as the truck's age, make, model, and condition at the time of the policy purchase. The coverage amount is typically set to match the ACV, ensuring that the truck can be repaired or replaced in the event of covered damage or loss. It's crucial to periodically reassess the ACV to ensure the coverage amount remains adequate for the truck's current value.
Can Physical Damage insurance be customized to cater to the specific needs or risks of a trucking company?
Yes, Physical Damage insurance for trucking companies can often be customized to cater to their specific needs and risks. Trucking companies can adjust coverage limits, add endorsements for specialized equipment or cargo, and tailor their policies based on their unique operational aspects.
Does Physical Damage insurance cover damages or losses to the cargo being transported?
No, Physical Damage insurance typically covers damages or losses to the truck itself, including damage from accidents, theft, vandalism, and other covered incidents. It does not provide coverage for damages or losses to the cargo being transported, which is usually covered under a separate cargo insurance policy.

This summary is intended for informational purposes only and does not replace or modify the definitions or information contained in any insurance policy or declaration page, which controls all coverage determinations. Terms and conditions may vary by state, and exclusions may apply.

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