Before You Continue
Does your lienholder also need to be listed as an Additional Insured? If so, that's also an endorsement, and you can request both at the same time through the Policy Change Request portal.
Physical Damage Insurance for
Trucks & Trailers
Physical damage (PD) insurance pays to repair or replace your own truck or trailer after a covered collision, theft, fire or weather loss. Each unit is insured for a stated value you choose, so getting that number right matters. MIG shops PD coverage with 30+ A-rated insurance carriers in 48 states.
Free and no obligation. We compare options across our insurance carrier partners to help you find the right coverage at a competitive price.
What Is Physical Damage Insurance for Trucks?
PD is optional under federal rules, but if you have a loan or lease on your equipment, your lender will almost always require it.
Some PD policies include an attended-vehicle condition for theft, meaning a theft claim may not be covered if the unit was left unattended. Ask your agent what your policy requires.
Accidents with a vehicle or object
Repairs or replaces your unit after it collides with another vehicle or object, or overturns.
Losses other than collision
Covers damage from causes other than a collision, along with theft.
- Damage you cause to others → Auto Liability
- Freight you're hauling → Motor Truck Cargo
- Wear, maintenance and mechanical breakdown
How Stated Value Works
You choose a stated value for each unit when you buy PD. After a total loss, the insurance carrier generally pays the lesser of the stated value or the unit’s actual market value at the time of the loss, minus your deductible. That means insuring a unit for too little costs you at claim time, and insuring it for too much costs you in premium.
Stated value is lower than market value
| Market value of the truck | $55,000 |
| Stated value on your policy | $50,000 |
| Your deductible | – $1,000 |
| Most the policy pays after a total loss | $49,000 |
Payment is capped at the stated value, so the $5,000 difference is yours to absorb.
Stated value is higher than market value
| Stated value on your policy | $65,000 |
| Market value at time of loss | $55,000 |
| Your deductible | – $1,000 |
| Most the policy pays after a total loss | $54,000 |
Payment is based on market value at the time of the loss. You don't get the extra $10,000, and you paid premium on it.
Illustrations only. Settlement terms vary by insurance carrier and policy; your policy documents control.
Setting your stated value
MIG can’t provide market values for equipment. Check dealerships, recent sales listings for similar year, make, model and mileage, and your lender’s requirements before choosing a number.
Update it over time
Equipment loses value. Reviewing stated values at renewal helps keep you from paying premium on value a unit no longer has.
Watch for coinsurance
Some PD policies reduce payment on partial losses, not just total losses, when a unit is insured too low. See how coinsurance works ↓
What Is Coinsurance on Truck Insurance?
In plain terms: if you insured the truck for only 75% of what the policy required, expect the insurance carrier to pay about 75% of a covered repair. Not every PD policy has a coinsurance clause, and the percentage varies, so check your policy documents or ask your producer.
The easy way to avoid it: set your stated value close to the unit’s real market value and update it as the unit ages.
A partial loss on an underinsured truck
| Market value of the truck | $100,000 |
| Required stated value (80%) | $80,000 |
| Stated value you chose | $60,000 |
| Covered repair bill | $20,000 |
| Reduced to 75% ($60K ÷ $80K) | $15,000 |
| Your deductible | – $1,000 |
| Policy pays | $14,000 |
You'd cover the other $6,000 of the repair. Illustration only; how coinsurance and deductibles are applied varies by insurance carrier and policy.
Loss Payees: Tell Your Agent Before You Bind
If you have a loan or lease on a truck or trailer, your lender will likely need to be listed as a Loss Payee on your PD policy, so claim payments for that unit go to them or to both of you. Adding a Loss Payee is usually free, but it’s a policy endorsement, so let your agent know before the policy is bound.
- Coverage requirements. Most lenders require specific coverage on the unit. Check with them before choosing a stated value.
- Deductible requirements. Many lenders won't accept a deductible higher than $1,000. Confirm before you bind, because a deductible can't always be lowered after the policy is in force.
- Paperwork. You'll need the lender's full legal name and mailing address for each financed unit.
Add a Loss Payee
Request a Loss Payee, Additional Insured or other endorsement through our Policy Change Request portal. For current MIG clients only.
Quote PD With Your Lender's Requirements
Have your lender’s coverage and deductible requirements handy and we’ll shop PD that fits them. Free and no obligation.
Deductibles, Downtime and Older Equipment
Three things to settle with your producer before the policy is bound, because they’re harder to change afterward.
Choose one you can pay
Your deductible is what you pay on each covered PD claim. A higher deductible lowers premium, but:
- Lenders often require $1,000 or less
- It can't always be lowered after binding
- It typically applies per unit, per loss
Rental Reimbursement & Downtime
Helps with a rental truck or lost income while a unit is being repaired after a covered loss. Not every insurance carrier offers it, and it isn’t automatically included on every policy.
- Ask your producer about it before you bind
- After binding, check your policy documents to confirm it's there
Insuring Older Equipment
Some insurance carriers won’t write PD on units past a certain age. Others will, but may charge more because of maintenance concerns.
- Rebuilt the engine or major components? Tell your producer so they can discuss it with the underwriter
- Keep rebuild receipts and maintenance records handy
Towing & Storage Isn't Automatic, and It Isn't Roadside Assistance
Towing and storage is not included on every PD policy. When it is, it applies only to covered equipment in a covered loss, and it has limits. Ask MIG whether your policy includes it before you need it.
| Towing & Storage (on your PD policy) | Roadside Assistance | |
|---|---|---|
| What it's for | Towing and storing a covered unit after a covered loss, such as an accident | Breakdowns and everyday problems: jump starts, flat tires, lockouts, fuel delivery |
| Where it comes from | An endorsement on your physical damage policy, if included | A separate membership or program. Not every insurance carrier offers it |
| Limits | Has a set limit; higher limits may be available for additional premium | Set by the program |
| Requirements | The unit must be scheduled and the loss covered. An unlisted driver can make the loss uncovered | Membership terms |
Need roadside help for breakdowns?
MIG partners with Roadside Masters, a nationwide commercial vehicle roadside membership. MIG clients may qualify for a special offer.
Want higher towing limits?
Ask your agent about increased towing and storage limits where available. Higher limits mean higher premium, and heavy tows and long storage can add up fast.
An unlisted driver can leave a loss uncovered
Many trucking policies only cover losses when the driver is listed on the policy. That applies to your PD claim, and to towing and storage after the loss. Add new drivers before they get behind the wheel.
Coverage for Trailers You Don't Own
Pulling someone else’s trailer? Your PD on your own units doesn’t cover it. These options can. See the glossary for more trucking terms.
Trailer Interchange
Covers a non-owned trailer in your care under a written interchange agreement, whether or not it’s attached to your truck. Common for intermodal and drop-and-hook work. Requires a stated amount and deductible. Glossary
Non-Owned Trailer Coverage
Covers a trailer you don’t own only while it’s attached to a power unit listed on your policy. No interchange agreement required. Requires a stated amount and deductible. Glossary
PD Works Alongside Your Other Policies
Auto Liability
Injury and damage you cause to others.
Motor Truck Cargo
Covers the freight you’re hauling.
Intermodal / UIIA
Trailer interchange for drayage carriers.
New Authority
Starting out with financed equipment.
Small Fleet
Owner-operators and growing fleets.
Fleet
Larger programs and multiple units.
Request a COI
Certificates for lenders and brokers.
Trucking Terms Glossary
Plain-English trucking insurance terms.
Physical Damage Questions
What does physical damage insurance cover on a truck?
What is stated value?
If I insure my truck for more than it's worth, do I get more after a total loss?
Can MIG tell me what my truck is worth?
What is a coinsurance clause on truck insurance?
Do I need a Loss Payee on my policy?
Is towing included with physical damage insurance?
Is towing and storage the same as roadside assistance?
Does physical damage include rental reimbursement or downtime?
Can I get physical damage on an older truck?
Will PD pay if the driver isn't listed on my policy?
Is the quote free?
Get a Free, No-Obligation PD Quote
Have your unit values and any lender requirements handy. Start online in minutes, or talk to a MIG Producer Mon–Fri, 8 AM–5 PM ET. We’re happy to help.
This page is general information about physical damage insurance for trucks and trailers and is not a statement of coverage. Coverage, values, limits, deductibles, eligibility and pricing are determined by the insurance carrier, and your policy documents control. Marquee Insurance Group is an independent insurance agency, does not provide equipment valuations, and does not issue policies, make underwriting decisions or decide claims.