Physical Damage Insurance for Cargo Transportation Companies

February 12, 2024 Blog

Hey! Do you have a cargo transportation company in the United States and are not yet insured with Physical Damage insurance? If you own or lease cargo transport vehicles, it’s essential to understand the importance of having insurance that protects you in case of accidents. We never know what the future holds, and it’s always better to be prepared. One of the most important types of coverage is Physical Damage insurance. In this article, we’ll explore in detail what Physical Damage insurance is, what it covers, its benefits, what documents you need to obtain a quote, and how long the quoting process can take.

What is Physical Damage insurance?

To start, it’s pertinent to know that Physical Damage insurance is a coverage that protects your commercial vehicle in case of damage caused by accidents, collisions, vandalism, theft, or natural disasters. This insurance policy could cover the costs of repairing or replacing your vehicle and may be essential to protect your investment and your financial security. All of this depends on the context of the accident and the insurance policy conditions.

The value to be paid for this insurance policy will depend on the truck data that is updated in the AVC, which is found in the blue book. Knowing the amount for which the vehicle could be insured, trucking insurance agencies or insurance companies can have more certainty when setting valuations for the quote.

What does a Physical Damage insurance policy cover?

The specific coverage may vary depending on the insurer and the type of policy you choose, but generally, Physical Damage insurance covers:

  • Collision damage: This covers damage to your commercial vehicle caused by collisions with other vehicles or objects, or any accident that may occur.
  • Comprehensive coverage: This may include damage caused by vandalism, theft, fire, flooding, hail, or other natural disasters.
  • COMP// COLL: Some physical damage insurance policies offer comprehensive coverage that combines collision coverage with coverage for other events, providing you with more complete protection.

The benefits of having a Physical Damage insurance policy:

  • Financial protection: In case of an accident or damage to your vehicle, Physical Damage insurance can cover the costs of repair or replacement, protecting you from incurring significant expenses out of your pocket.
  • Peace of mind: Knowing that you have solid protection for your vehicle can give you peace of mind and security while driving.

Documents needed for quoting and obtaining your Insurance

To obtain a quote for Physical Damage insurance, you generally need to provide the following documents:

  • Vehicle information: This includes the make, model, year of manufacture, serial number, and any special features of your vehicle.
  • Personal information: You will need to provide your name, address, date of birth, driver’s license number, and any other personal data required by the insurer.
  • MVRs: You may need to provide details about your driving history, including previous accidents, traffic violations, and any other relevant information.
  • Loss runs: Loss history.

How long does it take to get a quote?

The time it takes to get a quote, can vary depending on the insurer and the specific characteristics of your business. Sometimes the process is quick and can be completed in a matter of days if you provide all the required information accurately. However, in some cases, it may take longer if additional verifications are required or if there are special circumstances to consider.

Other considerations 

Once your commercial vehicle is insured with Physical Damage insurance, keep in mind that in case of an accident, you will have to pay the deductible, and always make sure your policy has additional coverage.

  • Deductible: The deductible is the amount you have to pay out of pocket when making a claim. Often, the higher the deductible, the lower the monthly premium cost. Choosing a deductible that you can comfortably afford in case of a claim is important.
  • Additional coverage: In addition to basic coverage, you may want to consider adding optional coverages. These options can provide additional protection and peace of mind, but they can also increase the total cost of your policy.

In conclusion, Physical Damage insurance is an important investment to protect your commercial vehicle and your financial security. It provides comprehensive protection against a wide range of risks and gives you the peace of mind of knowing that you are covered in case of accidents, theft, or damage.

By understanding the importance of this coverage and carefully considering your options, you can make informed decisions and ensure that your commercial vehicle is protected at all times. Remember that at Preventty, we help and advise you throughout the process so that you get the best insurance that suits your needs in the shortest time possible!