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Why do I need physical damage insurance if I don’t have a lienholder?

Physical damage insurance provides coverage to repair damage to your truck or trailer caused by fire, severe weather, theft, vandalism, and falling objects. It is common for lienholders on truck loans to require physical damage coverage to protect their financial interests if the truck requires costly repairs or cannot be fixed.

The price that you pay for physical damage truck insurance depends on the assessed value of your equipment. Insurance agents typically write policies that charge the trucker a percentage of the value to maintain coverage. Be sure to ask your agent to insure the truck for its current market value as that is what you will receive if you need to make a claim.

You do not have to keep physical damage insurance if you own the vehicle.

Keeping this coverage is optional if you have paid the loan and no longer have a lienholder, although maintaining the policy is a good idea. For example, you could find yourself parked overnight at a rest stop hundreds of miles from home when a tornado with severe winds and hail touches down in your area. The hail damage alone could cause damage costing thousands of dollars while the heavy wind can rip off mirrors or even tip the truck on its side.

In another example, imagine that your semi-truck becomes the target of vandalism for gang members. As someone who does not live in the area where you parked your truck, you would have no idea it was a magnet for gang activity. You wake up or come back to your truck only to discover that it is covered in spray paint on both sides with gang symbols and foul language that you would never want a customer to see.

While these scenarios are very different, what they have in common is that you alone would need to come up with the money to repair your truck. This could easily run into the tens of thousands of dollars depending on the extent of the damage. In a worst-case scenario, the damage would be so extensive that the only option would be to replace the truck. It might seem like these things could never happen to a parked vehicle, but keep in mind that it only takes one unfortunate incident to cost you a lot of money.

Physical insurance damage provides you with valuable peace of mind.

Even when you have paid off the loan on your 18 wheeler, it is still a valuable asset that deserves protection. Keeping your rig insured is the best way to protect your investment and lower the anxiety you might feel about taking on the risks of a parked vehicle. After all, you have enough to do already delivering loads and managing all of the tasks that come with that.

Find the best 18 wheeler insurance with help from our team.

Our truck insurance agents are available now to assist you in finding affordable physical damage coverage or other types of big rig insurance you might need. Fill out this quote form to receive quotes from several insurers. We are happy to help you evaluate plans so you can feel confident in your coverage decision.