The answer depends on several factors. First, if you lease or finance any commercial autos, the leasing firm or lender will likely require physical damage insurance for those vehicles. Other relevant factors include the age and condition of your vehicles and the features they contain. Trucks lose value as they age, and older vehicles may be worth too little to insure. Also, carefully consider the cost of physical damage insurance and your company's financial condition. If you decide to forgo insurance, be sure that your business can afford to replace a total loss to one of your vehicles.
Auto physical damage insurance protects businesses from financial losses resulting from damage to autos they own or hire. Most commercial auto policies provide two options for physical damage coverage: comprehensive and collision.
Comprehensive coverage applies to loss to a covered auto from any cause other than the vehicle's overturn or its collision with another object.
For example, you are driving a company vehicle when a large rock rolls off of a hill and crashes down onto the hood. The damage to the front of your vehicle is covered under comprehensive coverage.
Collision coverage applies to loss to a covered auto caused by its collision with another object or the vehicle's overturn. For example, suppose an employee of yours is driving a company truck during a heavy rainstorm. The vehicle skids on wet pavement and runs into a tree. The damage to the truck's right front fender is covered under the collision coverage.
Each physical damage coverage is subject to a separate deductible, which is the amount paid out of pocket for a covered loss. Choosing higher deductibles lowers your premium.
Please complete the online form on this page or ask our licensed insurance experts for a fast, free quote.
