Physical Damage Insurance
At Barbee Jackson Insurance we understand that your truck is your livelihood. Physical Damage Insurance is an important part of your insurance package. Your truck acts as your transportation, your workhorse, and even your home on occasion. Having the appropriate Physical Damage Coverage is a necessity when your truck is such a vital tool.
Physical Damage Insurance provides you with the coverage you need to protect your investment from unforeseen accidents. There are many aspects of a physical damage policy that we are going to go over below. It is important that you understand all of these coverage options so we can help you decide exactly what package is right for your truck. We here at Barbee Jackson Insurance are focused on getting you the appropriate coverage at the right price.
Options for Physical Damage Coverage
Almost all Physical Damage Insurance Policies are written on an “Actual Cash Value” basis. With this model the customer will usually choose a Stated Value for their vehicle and then a Comprehensive and Collision deductible will be chosen. I have listed below what these terms mean and how they affect your policy.
- Actual Cash Value – Actual Cash Value is a straight forward term. This term is used to describe the way your vehicle will be valued at the exact date of a claim. Actual Cash Value means that the insurance company agrees to give you the Actual Cash Value of your vehicle at the time of the loss. Different insurance companies use different formulas to determine the Actual Cash Value of your vehicle at the time of the loss. Most of the calculations are based on an average of the blue book value, retail value, re-sale value, and trade in value of your vehicle. Once those figures are input and averaged out the insurance company uses that average as the Actual Cash Value of your vehicle.
- Stated Value – This term can be a bit misleading when it is seen on an insurance policy. Your payout for any totaled vehicle will still be based on the Actual Cash Value of the vehicle at the time of the loss. Having a Stated Value on your policy puts a limit on the amount of coverage the insurance company is responsible for on any one vehicle. In the event of a total loss the insurance company is going to give you the Actual Cash Value of your vehicle UP TO the Stated Value. A Stated Value is essentially a cap on the amount of insurance you are buying as well as the amount of coverage the insurance company is willing to offer. The Stated Value is chosen by the client. It is up to you to make sure you are covering your truck for the appropriate amount of insurance. We will always do our best to assist our clients with choosing a Stated Value but it is ultimately up to the client. I have included an example below to illustrate just how the Stated Value works.
- In this scenario we will say the insured purchased Physical Damage Insurance coverage on a 2011 Freightliner Cascadia. The insured placed a Stated Value of $40,000 on the vehicle. Two weeks later the truck is totaled in an accident and the Actual Cash Value of the truck is determined to be $50,000. Since the insured set his Stated Value at only $40,000 he will only receive $40,000 (Minus Any Deductibles) for his vehicle. Now let’s use the same scenario but this time the insured had a Stated Value of $60,000 on the truck. The insurance policy is still going to pay the Actual Cash Value of the vehicle UP TO the Stated Value. In this case the insured would receive $50,000 (Minus Any Deductibles) for the truck.
- Comprehensive Coverage/Deductibles – Most Physical Damage Insurance policies are made up of two kinds of coverage (Comprehensive and Collision). Each of the coverage types come with their own deductible. Comprehensive coverage protects the client from those perils that are beyond their control. Fire, flood, theft, contact with an animal, and even contact with any flying object are all considered “Comprehensive Claims.” These types of claims usually do not have any affect on the client’s insurance rate because they do not have anything to do with how the insured operates their vehicle. A client cannot stop a limb from falling on their truck in the middle of the night nor can they stop a deer from running out in front of their vehicle. If any of these types of perils cause damage to an insured vehicle the insurance company will pay to have the vehicle fixed (Minus the Comprehensive Deductible).
- Collision Coverage – Collision Coverage is the other type of coverage that makes up the Physical Damage Insurance Policy. Collision Coverage protects the client from those accidents caused by a collision. A collision can happen between two vehicles, between a vehicle and another object, between a vehicle and a pedestrian, and even between a vehicle and the ground. There is usually an at-fault party and a not-at-fault party when a collision happens. A collision claim can also happen when the insured strikes and object or runs off the road and rolls their vehicle. In either case those collision claims that result in the client being charged an at-fault accident DO affect the insurance rates going forward. In a Collision Accident the insurance company will pay to fix the client’s vehicle (Minus the Collision Deductible).
*Please note: These are just examples of the different terminology and coverage parts that make up Physical Damage Coverage. For further understanding we suggest you give us a call and talk to an agent one on one. We are always happy to answer any coverage questions you may have!
In addition to the types of transportation insurance listed above, there are many other coverage options that you may want to consider including in your policy. Your Barbee Jackson Insurance agent will help you structure your trucking insurance policy in a way that addresses your specific concerns.
Barbee Jackson Insurance: The Clear Choice for Physical Damage Insurance
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Barbee Jackson Insurance can help you by comparing options, limits and deductibles. Our experts take the time to get to know your business and the way you use your trucks in order to help you save both time and money. All you have to do is click on the quote request button now and your agent will contact you with a no obligation quote that meets your exact needs.
Do not make the mistake of thinking you have the best coverage available. Allow our insurance experts to show you just how affordable the comprehensive coverage that you deserve can be. Get started now before it is too late.