Liability pays for damage you do to others; physical damage pays to repair or replace your own vehicle. It isn't legally required, but any lender or lessor will require it — and for most small trucking companies the truck is their largest asset.
Typical annual premium (planning range, not a quote)Commonly 2%–5% of the vehicle's stated value per year, depending on deductible and useRun the cost estimator →
The parts of physical damage coverage
- Collision — damage from hitting another vehicle or object, or overturning.
- Comprehensive (or specified perils) — theft, fire, hail, flood, vandalism, animal strikes.
- Stated value — the amount you declare; the insurer pays the lesser of stated value or actual cash value at the time of loss, so keep it realistic.
- Deductible — raising it from $1,000 to $2,500 or $5,000 is one of the easiest ways to lower premium.
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Get quotes Check a DOT/MC numberFrequently asked questions
Should I insure an older, paid-off truck for physical damage?
If the truck's value is low compared with the premium and deductible, some owners drop collision and keep comprehensive or none at all. Weigh whether you could afford to replace the truck out of pocket.
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Reviewed October 2026. General information only — not insurance or legal advice. Coverage terms vary by insurer and state.