Physical Damage Insurance
Physical damage insurance covers the repair or replacement of a carrier's own truck and trailer in the event of a collision, rollover, fire, theft, or vandalism. It is not required by FMCSA but is typically required by lenders financing the truck.
In Depth
Physical damage insurance is divided into two components: collision (covers damage from accidents) and comprehensive (covers theft, fire, weather, and other non-collision events). Lenders financing trucks almost universally require this coverage to protect their collateral.
Premiums are based on truck value, deductible selected, driver experience, and claims history. Annual costs typically run 2–4% of the insured truck value. A $120,000 truck at 3% costs $3,600/year. Many owner-operators self-insure older paid-off trucks by dropping physical damage coverage to reduce costs.
When choosing deductibles, a higher deductible ($5,000–$10,000) reduces premiums significantly but requires cash reserves to cover the deductible in the event of a claim.
Usage Example
Example: 'My truck sustained $28,000 in frame damage after a deer collision. Physical damage insurance paid for repairs after my $5,000 deductible.'
Related Calculators
Related Terms
Primary Insurance
Primary liability insurance is the foundational commercial auto liability policy required by FMCSA for carriers operating in interstate commerce. It covers bodily injury and property damage when the truck is under dispatch and actively engaged in commerce.
Bobtail Insurance
Bobtail insurance (also called non-trucking liability) covers a semi-truck when it is being driven without a trailer and outside of active dispatch — such as driving home after a delivery or repositioning to a pickup. It fills the gap that primary insurance does not cover.
Cargo Insurance
Cargo insurance (also called motor truck cargo insurance) covers the freight a carrier is transporting in the event of theft, damage, or loss during transit. FMCSA requires a minimum of $5,000–$10,000 cargo coverage, though brokers commonly require $100,000.
Truck Payment
Truck payment refers to the monthly loan or lease payment on a commercial truck. For owner-operators, this is typically the second-largest fixed expense after fuel, ranging from $1,200–$4,000/month depending on truck value, down payment, and loan term.
Frequently Asked Questions
Is physical damage insurance required?
Not by FMCSA, but any lender financing your truck will require it. It's optional for paid-off trucks, though risky without significant cash reserves.