In this post, we’re tackling a myth we hear all the time about physical damage coverage.
The myth: “If my truck is totaled and I still owe money on the loan, then physical damage covers that amount.”
That’s not true. Physical damage coverage pays the Actual Cash Value (ACV) of the truck at the time of the loss – not the amount still owed on a loan or lease. ACV is often described as market value.
What Is Physical Damage Coverage?
Physical damage is a type of truck insurance that covers repairs or replacement costs. This can include truck or trailer damage from collisions or even natural disasters, such as a flood or fire.
At Ten Four, towing and gap coverages are also included.
Towing Coverage
If a truck needs to be towed, and the loss is covered, then our physical damage insurance will pay the cost to have the truck towed to the nearest qualified repair shop.
Gap Coverage
If there’s a difference between the balance owed on the truck and the ACV, then gap coverage will cover up to $20,000 if the truck is totaled.
Add-Ons
Ten Four also provides add-on coverage for other expenses, including:
- Downtime/rental
- Personal effects
- Electronic equipment
- Tarp, chains and binders
- Windshield replacement
How is Actual Cash Value Calculated?
Basically, Actual Cash Value is how much the truck is worth right before the covered event.
ACV considers the age of the truck, mileage, accident history, wear and tear, etc. Again, ACV is sometimes referred to as market value.
Get a Quote in Minutes & Save on Truck Insurance
Don’t assume your physical damage insurance includes gap coverage. Make sure you read your policy details and get clarification on any questions.
Better yet, if you’re not insured by Ten Four Truck Insurance, get a quote online or give us a call.
All it takes is a few minutes and you could save $500 or more. How do we know that? Because we know trucking and we only insure trucks.
We cut out the other fluff to help you keep more of your hard-earned money.