What Physical Damage Insurance for Semi Trucks covers
- Collision damage: anything you hit, or anything that hits you, on or off the road
- Comprehensive losses: fire, theft of the truck itself, vandalism, falling objects, and animal strikes
- Severe weather damage: hail, wind, flood, and hurricane (subject to your deductible)
- Glass replacement on most policies, often with a separate lower deductible or a zero-deductible endorsement
- Towing and recovery after a covered loss, typically $10,000 to $25,000 or greater
- Stated value or actual cash value depending on policy form
What it costs
Physical damage is priced as a percentage of your truck's insured value, not a flat rate. The range is typically 4–7% of the total insurable value per year.
See the full pricing breakdown →
Who needs Physical Damage Insurance for Semi Trucks
If your truck is financed, your lender requires physical damage as long as the loan is open, usually with a stated minimum equal to the loan balance. Own authority operators who own their truck outright sometimes drop it to save on premium, but a single fire or rollover can wipe out a paid-off truck and end your operation overnight. Leased-on operators typically carry their own physical damage even when the carrier covers liability, the carrier's policy doesn't cover your truck.
Common exclusions
- Most policies exclude mechanical breakdown, a blown engine or transmission failure isn't a covered cause of loss
- Typical exclusions include wear and tear, rust, and gradual deterioration over time
- Most policies exclude damage to non-owned trailers you pull under interchange, that's what trailer interchange coverage is for
- Typical exclusions include theft of personal items, electronics, or aftermarket equipment unless covered by an endorsement
- Most policies exclude damage from operating off-road or outside your filed radius without an endorsement
- Specific exclusions vary by carrier; read your policy and ask about endorsements before assuming something is covered
Exclusions vary by carrier. Review the declarations and the exclusions schedule before you bind.
Related guides
Frequently asked questions
What is the difference between collision and comprehensive?
Collision pays when your truck hits something or rolls over. Comprehensive (sometimes called "other than collision") covers everything else: fire, theft, vandalism, weather, animals. Most physical damage policies bundle both, but the deductibles can differ.
What deductible should I carry?
Most owner operators run $1,000 to $2,500. Higher deductibles ($5,000+) drop the premium meaningfully but increase your out-of-pocket on small claims. The math: if a $1,000 deductible saves you $400 a year over a $2,500 deductible, the higher deductible pays for itself only if you go four years without a claim.
What is the truck's "stated value" and how is it determined?
The stated value is the highest amount the insurance company will pay out for your equipment. The insured is responsible for providing the stated value based on the year, condition, and mileage of the scheduled equipment. Used trucks are usually insured for a lower stated value than newer trucks.
Does physical damage cover my freight?
No. Physical damage covers the truck and trailer themselves. Damage to the freight inside is covered by motor truck cargo, which is a separate policy with its own limit and deductible.
What happens in a total loss, do I get the full stated value?
Depends on the policy form. An "agreed value" or "stated value" form pays the figure on the declarations page, less your deductible. An "actual cash value" form pays market value at time of loss, which is usually less than what you paid.
Can I drop physical damage on a paid-off truck?
You can, but read your operation honestly first. If you can self-fund a replacement after a fire or rollover, dropping coverage frees up real money. If a $90,000 loss would put you out of business, the premium is cheap insurance against ending your career.
Does physical damage cover hitting a deer?
Animal strikes are a comprehensive (non-collision) loss on most policies. You pay your comprehensive deductible and the repair is covered up to the truck's insured value.
Will physical damage pay if I lend my truck to another driver?
Only if that driver is listed on the policy or fits the "permitted user" definition. Lending your truck to an unlisted driver (even another CDL holder) can result in a denied claim. Add regular drivers to the policy before they touch the keys.