Physical Damage Insurance For Your Truck

Physical Damage Insurance protects your truck against risks like theft, fire, and vandalism. Lenders often require this type of coverage for leased and loaned trucks.

This type of insurance is typically paired with collision and comprehensive coverage in conventional auto policies. Generally, these types of policies have deductibles that policyholders must pay prior to the insurer covering claims.

Collision

Collision coverage pays to repair your vehicle if it’s damaged in a car crash with another vehicle or object. It may also cover damage sustained from a rollover or if your car hits a tree or other stationary object while parked. Typically, collision is optional but some lienholders require it if you lease or finance your car.

For example, you could have collision car insurance if you hit a deer while driving on an errand and damage your vehicle and the fence behind it. You could also have this coverage if you swerve to avoid hitting something on the road and smash into your neighbor’s mailbox. In both of these instances, your collision coverage might help pay to repair or replace your covered vehicle, up to the actual cash value (ACV) of your vehicle, less your selected deductible.

A loss-damage waiver (LDW), which is sometimes offered as an option with a rental car, might provide similar protection. However, LDW usually doesn’t cover uninsured motorist bodily injury liability or personal injury protection/medical payments (PIP/MedPay) caused by traffic accidents, per SmartTravel. You might be able to extend your own car insurance’s collision and comprehensive coverage to a rental vehicle by purchasing a separate endorsement.

Comprehensive

Comprehensive coverage pays to repair or replace your vehicle if it’s damaged by an event that isn’t related to a collision, such as fire, theft, or a tree falling on your car during a storm. It also covers damage to your windshield and windows (although the deductible for this type of claim is typically higher than for collision claims). This coverage is especially important for those who park their car outside or in a garage at night, as this increases the risk of break-ins and vandalism.

This type of damage can be very costly to repair, so comprehensive coverage is a great investment for those who want peace of mind that their vehicle is protected in the event of an unexpected disaster or act of nature. Many people file comprehensive claims for damages caused by “acts of God” like hurricanes and tornadoes, but this type of damage can also happen in less extreme weather events, such as hail or a lightning strike.

Having both collision and comprehensive insurance is usually required by lenders if you are leasing or financing a car. While deciding whether to get these types of coverage, it’s important to weigh the cost against the potential value of your car in the long run.

As vehicles get older, their value decreases, which may make the cost of collision and comprehensive coverage seem disproportionate to their current value. However, if you plan to keep your vehicle for several more years, it is likely worth the extra cost of this coverage. Those who own their cars outright, or have the funds available to pay for car repairs or replacement, can choose to drop this type of coverage.

Uninsured Motorist

Physical damage insurance is designed to protect policyholders against expensive repair bills for their own vehicles. This type of coverage typically offers protection against a wide range of risks, including fire, water, vandalism, break-ins, glass breakage, collision with animals, and weather-related damage. It’s commonly included in combined comprehensive and collision car insurance policies, as well as in separate stand-alone options. Lenders, lessors and lienholders often require it for leased or financed trucks to protect their interests. It’s also important for those who want the peace of mind that comes with knowing their cars, trucks and other business vehicles are covered against a variety of potential damages.

Uninsured/Underinsured Motorist Property Damage (UMPD) coverage pays for the damage to your vehicle that is caused by an at-fault driver who does not have liability insurance or whose limit is less than what is required by your state. UMPD usually provides you with the same limits as your bodily injury liability coverage, but higher limits are available for an additional cost.

For example, you’re driving on a highway and fail to check your mirrors, hitting a vehicle driven by an uninsured driver. That driver’s property damage liability limits of $10,000 are not enough to cover the full amount of your repairs. That’s when you would submit a claim to your own insurance company for reimbursement under the uninsured motorist property damage portion of your policy.

The amount of money your insurer will reimburse you for a totaled vehicle is usually based on actual cash value, which takes depreciation and other factors into account. If you’re looking for more than this, you can opt for a new car replacement policy, which will give you the amount to replace your vehicle with one of identical make and model.

Although most states only require liability insurance, the vast majority of drivers still carry collision and comprehensive coverage to help protect their assets. Most experts recommend this level of protection as well, since accidents can be financially devastating if you’re left without a vehicle. Contact Higginbotham to find out more about the different types of car insurance and the benefits of obtaining physical damage coverage.

Rental Reimbursement

If your car is damaged in an accident or by a natural disaster, rental reimbursement coverage will pay for a rental vehicle while your car is getting repaired. Generally, this is an optional add-on that will increase your insurance premium by a small amount. It’s important to understand exactly what this policy covers so you can decide if it’s worth the extra charge every month.

Most insurers have partnerships with rental car companies so that they can reimburse the agency directly for the cost of the rental. This can be a time saver because you don’t have to pay up front and then submit receipts for reimbursement. However, some policies may require you to choose a specific rental company. If you don’t, you will have to pay out of pocket and then be reimbursed by the insurance company later.

Depending on your auto policy, this type of coverage may also cover transportation costs for things like cab fare and public transit fees if you aren’t able to rent a vehicle while yours is being repaired. It’s typically only available if you have both collision and comprehensive coverage on your policy.

If you’re injured in an accident that another person caused, their liability insurance should cover the cost of a rental vehicle while yours is being repaired. As such, you may not need to buy this coverage if you have collision and comprehensive on your policy.

Before purchasing this type of coverage, check your policy for daily and per claim limits. The limit will be the maximum amount your insurance company will pay for a rental. Some companies will even specify the size of vehicle that you can rent. If you need a larger vehicle, you will be responsible for the difference in cost.

While it is a good idea to have collision and comprehensive coverage, not everyone will need rental reimbursement. Talk to your insurance agent about your options and decide what’s right for you. If you are still unsure whether or not this coverage is worth the additional cost, try using the Liability Insurance Agency to get a quote and find out what your options are in your state.