Physical Damage Coverage: Is It Worth It for Your Fleet? 

Physical damage coverage is a type of commercial auto insurance that may help cover the costs of repairing or replacing your fleet vehicles after a covered event.

What is Included in Physical Damage Coverage?

This type of insurance includes the following protections:

• Collision coverage may cover damage to your vehicle if it hits another vehicle or object.

• Comprehensive coverage may cover incidents unrelated to a collision, such as fire, theft and vandalism.

Like other types of insurance, physical damage coverage has exclusions. It typically does not cover wear and tear, mechanical breakdowns or losses involving personal belongings inside the vehicle.

Does My Fleet Need Physical Damage Coverage?

Physical damage coverage is worth considering if your business owns or operates several vehicles. Without it, you may face thousands of dollars in damages after a single accident. Many of the following businesses benefit from this coverage:

• Trucking and freight companies

• Construction companies

• Landscaping and lawn care services

• Plumbing, electrical and HVAC contractors

• Courier and delivery services

• Food and beverage distributors

• Car rental and leasing companies

California state law does not mandate physical damage coverage for commercial vehicles. However, lenders may require it if your fleet vehicles are leased or financed.

Contact Us

Stephany's Auto Insurance Services in Paramount, California, can evaluate your situation and find coverage options that make sense for your operation. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.