Physical Damage Semitruck Insurance (2026)

Physical damage insurance for semitrucks protects your truck and trailer from various risks, including collisions, theft, fire, and weather damage.^[1] While only liability coverage is legally required, lenders and leasing companies typically require physical damage coverage to protect their investment.

In this guide, you’ll learn what physical damage insurance does and doesn’t cover, what it typically costs, and how to choose the best commercial truck insurance coverage. Whether you’re an owner-operator or you manage a fleet, understanding what physical damage insurance covers helps you make informed decisions about protecting your most valuable business asset.

What physical damage insurance for semitrucks covers

Similar to a personal auto policy, physical damage insurance for semitrucks includes comprehensive and collision coverage. These work together to protect your vehicle from different types of damage:^[2]

• 

  Collision coverage

  Collision insurance pays for repairs when your truck hits another vehicle, strikes an object, or rolls over. Since collision damage is costly to repair, collision insurance typically costs more than comprehensive coverage.

• 

  Comprehensive coverage

  Comprehensive insurance protects against non-collision events, including fire, theft, vandalism, hail, windstorms, earthquakes, and animal strikes. This coverage acts as your safety net for unpredictable losses that can sideline your truck.

Many insurers also offer downtime coverage and rental reimbursement as optional endorsements. Such coverages help offset lost revenue and provide temporary replacement vehicles while your truck undergoes repairs, keeping your trucking business operational.

Physical damage coverage typically applies regardless of fault. If you cause an accident or your truck suffers damage from a covered event, your policy helps repair or replace your vehicle.

For example, collision coverage pays to repair your truck and trailer if you haul freight and collide with another vehicle at an intersection. And comprehensive coverage pays for bodywork and paint repairs if a severe hailstorm damages your parked semitruck.

What physical damage insurance doesn’t cover

While physical damage insurance provides broad protection for your vehicles, several important exclusions apply:

• Wear and tear, mechanical breakdown, or blown tires: Physical damage policies don’t cover maintenance issues like worn brake pads, age-related engine failures, or routine tire replacements.

• Cargo inside the truck: You need separate motor truck cargo insurance to protect the goods you haul from loss or damage during transport.

• Injuries to the driver or others: Physical damage insurance doesn’t cover medical expenses or bodily injuries. Liability insurance or workers’ compensation provides that protection, depending on the circumstances.

• Personal belongings inside the cab: Physical damage insurance doesn’t cover items stored in your truck, such as laptops, phones, or clothing.

For complete protection, you’ll need several additional coverages, including:

• Liability insurance: Protects you if you injure someone or cause property damage.

• Cargo insurance: Covers the freight you transport.

• Workers’ compensation: Pays for medical expenses and lost wages if a driver gets sick or injured on the job.^[3]

Why truckers and fleets need physical damage insurance

Physical damage insurance protects trucking businesses and owner-operators from significant financial risks. Here’s why it’s so important:

• High repair and replacement costs: Semitruck repair costs frequently range from $10,000 to $20,000 or more, and major accidents can result in total losses exceeding $100,000. Without physical damage insurance, these replacement costs come directly from your business funds, potentially causing severe financial hardship or even bankruptcy for smaller motor carriers.

• Lender and lessor requirements: Lenders and leasing companies require physical damage coverage when you finance or lease your equipment. That’s because they have a financial interest in your truck until you pay off the loan.

• Peace of mind for owner-operators: Your truck represents your livelihood and likely your largest business investment. Having damage insurance coverage protects your semitruck and can put your mind at ease.

• Lost revenue during downtime: When your truck sits in a repair shop, you lose revenue from missed loads and may face penalties for contract violations. When a trucking company loses even one vehicle, it can create scheduling issues, strain customer relationships, and affect profitability. Downtime coverage and rental reimbursement help minimize these revenue losses while a semitruck is repaired.

Cost of physical damage insurance for semitrucks

Physical damage insurance typically costs between $1,500 and $4,000 per truck annually, or between 2.5% and 5% of your truck’s value. But insurance rates may vary significantly based on policy limits and other details, including:

• Truck value: Newer, more expensive vehicles increase premiums since replacement costs are greater.

• Risk factors: Your location, time in business, and claims history affect your insurance rates.

• Operating radius and routes: Long-haul interstate operations typically have higher insurance costs than companies with regional or local routes.

• Operator driving records: Trucking companies that employ drivers with clean records qualify for better insurance rates.

• Fleet size and safety history: Larger fleets with strong safety programs may qualify for discounts.

• Deductibles: Higher damage coverage deductibles reduce your premium but increase your out-of-pocket costs when you need to file a claim.^[4]

Insurance companies evaluate these factors differently, so quotes can vary widely between insurers. Get quotes from several insurers before buying a policy to ensure you get the cheapest commercial car insurance.

How much physical damage coverage you need

Physical damage insurance covers your truck’s stated value, calculated as actual cash value or agreed value. Actual cash value considers depreciation and pays what your truck is worth at the time of loss.

On the other hand, agreed value locks in a predetermined amount, offering more payout certainty.^[5]

How to buy physical damage insurance for semitrucks

Follow these steps to purchase sufficient physical damage insurance for your semitruck:

• 

  1. Assess your truck’s value

  Determine whether actual cash value or agreed value better suits your needs by researching current market prices for your equipment.

• 

  2. Gather necessary documents

  Collect your truck’s VIN, USDOT number, motor carrier number, and lease or finance agreement. Also, gather each driver’s personal information and driver’s license number.

• 

  3. Get multiple quotes

  Contact national insurers and trucking specialty insurance companies to compare coverage options and rates. Request detailed information about what each policy covers.

• 

  4. Bundle coverage

  You’ll typically purchase physical damage insurance as part of a comprehensive commercial truck insurance package alongside liability, cargo insurance, and other essential coverage types for complete risk management.

• 

  5. Request certificates of insurance

  After buying your policy, obtain certificates of insurance for lenders, lessors, or shippers who require proof of coverage. Keep these documents handy for roadside assistance and to facilitate the claims process.

Physical damage insurance FAQs