Insurance Commercial Insurance

Commercial Truck Insurance Physical Damage

When purchasing a commercial truck insurance policy the named insured will be able to choose from many types of coverage including liability, uninsured motorist, cargo, general liability, bobtail coverage, and physical damage.

The physical damage coverage on an insurance policy is coverage that protects the value of the vehicle scheduled on the policy from a loss due to theft, vandalism, or collision. Vehicles insured on a commercial truck insurance policy will be listed as a stated value.

The stated value on an insurance policy specifies the amount of coverage that a policyholder chooses. The limit of coverage will determine the maximum amount of coverage that the insurance company pays out. It is important that the stated amount is appropriate because the premium charged on the insurance policy will be based upon the amount of coverage requested and the insurance company is only required to pay out up to the fair market value of the vehicle.

As an example, if a vehicle is insured to fifteen thousand the premium associated with physical damage coverage would be based upon the limit requested. If the vehicle were to be involved in an accident and the fair market value is ten thousand, the insurance company would only be required to pay out ten thousand.

In these types of situations the policyholder would be paying a higher premium than needed. It is highly recommended that policy holder verify the fair market value of the vehicle when requesting an insurance policy. This will ensure that the limit selected is appropriate and that the policy holder does not over or underinsure the vehicle.

When insurance companies pay out for claims as a result to a physical damage loss the maximum amount that will be paid out is the lowest between the stated value and the fair market value. With this taken into consideration all drivers should have the value of their trucks rated appropriately.



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