Class Insurance Agency, an affiliated office of AIC Insurance
Physical damage insurance for semi trucks and trailers
Liability insurance pays for damage you do to others. Physical damage insurance pays to repair or replace your own tractor and trailer after a crash, fire, theft or storm. The federal government doesn’t require it, but almost every lender does, and for an owner-operator the truck is usually the biggest asset in the business.
Call 360-450-2211 or start a quote online. We work in English, Russian, Ukrainian and Romanian.
What physical damage covers
- Physical damage is coverage against material damage to your own vehicle, including collision, vandalism, fire and theft.[1]
- Collision pays for damage to your truck no matter who caused the accident, up to its actual cash value, minus your deductible.[2]
- Comprehensive pays for damage from causes other than accidents, such as hail, vandalism, flood, fire and theft[2], and broken glass.[3]
The federal insurance rules cover public liability: injuries and damage to other people and their property, not your own truck.[4] That’s why FMCSA’s filing chart has no line for physical damage.[5]
How a total loss is valued
- Actual cash value is, in most cases, replacement cost minus depreciation.[1][2] In California, unless the policy says otherwise, it means fair market value.[6]
- Other valuation clauses. Policies settle a total loss under their valuation clause, such as actual cash value, agreed value, stated value or replacement cost.[7] These don’t all pay the same way, so check which one your policy uses before a loss, especially for a newer or custom truck.
- Deductible. A $1,500 collision claim with a $500 deductible pays $1,000.[2] A higher deductible lowers the premium.[6]
If your truck is financed or leased
- Lenders require it. If you still owe money on a vehicle, the lender will require collision and comprehensive. If you drop them, the lender can buy expensive single-interest coverage and add it to your loan.[8]
- Loss payee. The lender is listed as loss payee on your declarations page.[3]
- SBA loans. SBA requires hazard insurance on all assets pledged as collateral on 7(a) and 504 loans over $50,000, with the lender named in a lender’s loss payable clause.[9]
What trucks cost to own and fix
ATRI found that truck and trailer payments hit a record 39 cents a mile in 2024, up 8.3%, with total operating costs of $2.26 a mile.[10] Repair and maintenance ran about 20 cents a mile in 2023[11], and ATRI reported repair and maintenance costs up 8.6% in 2025, with total costs at a record $2.34 a mile.[12] Those numbers are why a deductible and a valuation clause matter: a major repair or a total loss can wipe out months of margin.
Comprehensive also covers theft of the truck itself.[2] Cargo theft is a separate risk covered by cargo insurance; NICB says truck stops and parking lots are the most common places loads are stolen.[13]
Owned trailers vs. trailers you pull for others
Physical damage on your policy covers the trailers you own and schedule. A trailer you pull under an interchange agreement belongs to another carrier, and you’re responsible for damage to it whether or not it’s attached to your tractor. That exposure is covered by trailer interchange insurance.[14]
What to have ready for a physical damage quote
- Year, make, model and VIN of each tractor and trailer
- Purchase price, current value and any lienholder or lessor
- The deductible you’d like to carry
- Where the trucks are garaged and your usual radius
- Whether you pull trailers you don’t own under interchange agreements
- Driver experience and loss history
Frequently asked questions
Does FMCSA require physical damage insurance on my truck?
No. The federal filings cover liability to others. Physical damage is optional under federal rules, but lenders and lessors almost always require it.[4][8]
What is the difference between comprehensive and collision for a semi?
Collision covers crash damage to your truck regardless of fault. Comprehensive covers other causes such as fire, theft, hail, flood, vandalism and glass.[2][3]
What happens if my financed truck is totaled?
The policy pays under its valuation clause, minus the deductible, and the lender listed as loss payee is included on the payment.[7][3]
Is actual cash value the same as agreed value?
No. Actual cash value is usually replacement cost minus depreciation, while agreed or stated value clauses work differently. Check which one your policy uses.[1][7]
Does physical damage cover a trailer I don’t own?
Not usually. A trailer you pull under an interchange agreement needs trailer interchange coverage.[14]
Get a physical damage quote
Call 360-450-2211 or start your quote. We quote trucking operations in the 48 contiguous states from our office in Vancouver, Washington, Monday to Friday, 7 a.m. to 5 p.m. Pacific.
Related coverage
Sources
- [1] NAIC: Glossary of insurance terms
- [2] Texas Department of Insurance: Auto insurance glossary
- [3] NAIC: Auto insurance consumer guide
- [4] 49 CFR 387.5: definitions (public liability)
- [5] FMCSA: Insurance filing requirements
- [6] California Department of Insurance: Auto insurance terms
- [7] IRMI: Total loss
- [8] Texas Department of Insurance: Auto insurance guide
- [9] SBA: SOP 50 10 8 technical updates (2025)
- [10] ATRI: Operational costs of trucking, 2025 release
- [11] ATRI: Operational costs of trucking, 2024 release
- [12] ATRI: Operational costs of trucking, 2026 release
- [13] NICB: Cargo theft
- [14] IRMI: Trailer interchange insurance
General information only, checked September 2026. Rules change; confirm with the agency that issues your permits. Coverage availability, terms and filings depend on underwriting and the policy issued; a quote request does not bind insurance.