Physical damage insurance semi truck
Physical damage insurance pays to repair or replace your own tractor after a collision, rollover, theft, fire, hail, flood or vandalism. ISO's motor carrier form writes it as up to three coverages, comprehensive, specified causes of loss and collision, paying the lesser of actual cash value or repair cost, less your deductible. FMCSA's Part 387 minimums cover liability to others, not your own truck, and Utah's list of required policy parts leaves it out. On a financed or leased truck, read the lender's or lessor's written terms; Progressive says physical damage "is usually required for trucks with an outstanding loan or lease."
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
What does physical damage insurance cover on a semi truck?
Your own tractor and its equipment. ISO's Motor Carrier Coverage Form pays for "loss" to a covered "auto" or its equipment under three coverages. Comprehensive pays for loss from any cause except collision with another object or overturn; collision pays for exactly those two. Specified causes of loss is a closed list: fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, vandalism, and the sinking, burning, collision or derailment of anything carrying the truck. Comprehensive also pays glass breakage and hitting a bird or animal. The form pays the lesser of actual cash value or the repair cost, with the deductible taken off first.
Carrier forms can differ from ISO's. Progressive Commercial says its "Fire and Theft with CAC insurance is a limited form of Comprehensive insurance specially designed for specific heavy truck types," and that you must select comprehensive or fire and theft with CAC "to have Collision coverage included." ISO's towing and labor coverage names only private passenger types, light trucks and medium trucks, so ask whether your tractor qualifies.
Is physical damage insurance required on a semi truck?
Not under FMCSA's financial responsibility rules in 49 CFR Part 387 or Utah's list of required policy parts. 49 CFR 387.5 defines the financial responsibility FMCSA demands as reserves "sufficient to satisfy liability amounts set forth in this subpart covering public liability," and 387.9's $750,000 floor applies to for-hire carriers of nonhazardous property in interstate commerce in vehicles of 10,001 lb GVWR or more. FMCSA's filing chart has columns for liability (BIPD), cargo and a bond or trust fund, none for the carrier's own truck. Utah Code 31A-22-302 says a policy meeting Utah's security requirement "shall include" liability, uninsured and underinsured motorist, and personal injury protection; physical damage is not on the list.
On a financed or leased truck, look for the requirement in the finance or lease contract. Progressive says "physical damage coverage is usually required for trucks with an outstanding loan or lease" and "If your vehicle is fully paid for, Physical Damage coverage is optional." On a July 2026 Peterbilt purchase, Redoubt wrote down for the buyer what PACCAR and the dealer were asking for: "proof of physical damage on the insurance certificate," a $2,500 maximum deductible, and an insured amount of $74,002.94 or ACV. Get the lender's terms in writing before you shop.
What does full coverage semi truck insurance mean?
ISO's motor carrier form has no coverage called full coverage. Its physical damage section grants comprehensive, specified causes of loss and collision, and the symbols next to each coverage on the declarations "designate the only 'autos' that are covered 'autos'." On specifically described autos, only those "for which a premium charge is shown" are covered. Progressive calls physical damage "a general term for a group of insurance coverages that protect your vehicle." When a dealer or lender says full coverage, ask in writing which coverages, the highest deductible and the value it wants.
How much physical damage insurance do you need for a semi truck?
A stated amount close to what the truck is worth today. Progressive says you "are required to submit a stated amount, which is your best estimate of the current value of your vehicle," counting "special equipment or upgrades you've added." ISO's Stated Amount Insurance endorsement caps the payout at the least of actual cash value, the repair cost or the stated limit, and its schedule warns that the amount shown "is not necessarily the amount you will receive" after a loss. On a total loss, actual cash value is adjusted for depreciation and condition.
That is where a financed truck can come up short. In July 2026 a buyer financing a truck at a dealership told Redoubt the insured value "has to, at minimum, be the finance amount." Insuring at the loan balance does not raise the payout: Progressive says an insurer will look at the stated amount and ACV "and pay whichever is less." ISO covers the shortfall in a separate endorsement, Auto Loan/Lease Gap Coverage: where a premium charge shows it applies, it pays "any unpaid amount due on the lease or loan" after a total loss, less the physical damage payment, overdue payments, extended warranties and carry-over balances.
How much does physical damage insurance cost for a semi truck?
No carrier page we checked on 2026-10-03 prints a physical-damage-only price for a semi. Progressive says, on its truck insurance cost page read that day, "The national average monthly commercial truck insurance cost with Progressive Commercial ranged from $734 for specialty truckers to $926 for transport truckers." Its footnote: "2025 new policy premium per power unit for liability and physical damage coverage for policies with no driver violations." The page adds, "Remember, these numbers are only averages." So the figure prices liability and physical damage together, not the truck's own coverage alone.
Two choices move the physical damage price, by Progressive's account. One is the stated amount: in Progressive's example, a florist who states a van at $50,000 "will pay an insurance premium based on that amount" but receives only the $35,000 ACV after a total loss. The other is the deductible; Progressive says "Choosing a higher deductible is an easy way to lower the price of your insurance." A lender can cap the deductible; on the PACCAR-financed Peterbilt the cap was $2,500. State the value accurately and take the highest deductible the lender allows.
What does semi truck physical damage insurance not cover?
The exclusions are specific. A repair that leaves the truck better than it was is not paid for the betterment. Audio, visual and data electronics are excluded unless they run solely on the truck's electrical power and are permanently installed, sit in or form part of a permanently installed housing, or are needed to run or monitor the truck. Those in a housing or location the manufacturer does not normally use are capped at $1,000 in one loss; ISO's CA 99 60 adds a scheduled limit on top.
| Loss | Paid? | Source |
|---|---|---|
| Mechanical breakdown, wear and tear, freezing | No | ISO CA 00 20, IV B.4.a |
| Tire blowout or road damage to tires | No, unless the whole truck is stolen | ISO CA 00 20, IV B.4.b |
| Lost resale value after a repair | No | ISO CA 00 20, IV B.5 |
| Electronics in a non-factory location | Up to $1,000 per loss | ISO CA 00 20, IV C.1.b |
| A trailer you don't own, under interchange | Not under physical damage; trailer interchange coverage is a separate grant | Progressive; ISO CA 00 20, Section III |
| A rental while the truck is in the shop | Only with rental reimbursement, and not while you have a spare | ISO CA 99 23 |
| The freight in the trailer | No; that is a cargo policy | Progressive |
Is insurance for a Peterbilt different from other semi trucks?
The coverage is not; the value and the lender can be. The ISO form's physical damage grant does not turn on the make: it insures a covered auto "or its equipment" the same way for a Peterbilt 379 as for any tractor. Chrome, a custom sleeper or a rebuilt engine belong in the stated amount. Progressive points to "a publication that specializes in valuing vehicles, such as Price Digests or Truck Paper" and says dealerships, manufacturers and lenders "can also assist you in calculating your stated amount."
PACCAR, which builds Kenworth, Peterbilt and DAF trucks, also provides financial services; PACCAR Financial calls itself "the dedicated finance partner for Kenworth and Peterbilt trucks." On a July 2026 Peterbilt purchase, the buyer read the dealer paperwork to Redoubt: "it just says it has to go loss payee listed as the following PACCAR financial." On the same client's next truck two weeks later, Redoubt's underwriters would not add a loss payee without the financier's details; Redoubt texted that they "need the name and address of the company financing" it.
What are the key steps in a truck physical damage claim?
Under ISO's motor carrier form, the insurer has no duty to provide coverage unless you comply with these duties:
The insurer then chooses how to settle: it may pay for, repair or replace the truck, return stolen property and pay for the theft damage, or take the truck at an agreed or appraised value, with sales tax included. If you disagree on the amount, either side can demand an appraisal; each pays its own appraiser and you share the umpire and other appraisal costs equally. On a financed truck the check is not yours alone: ISO's loss payable clause pays "as interest may appear, you and the loss payee."
- Give prompt notice of how, when and where the loss happened
- Call the police if the truck or its equipment was stolen
- Protect the truck from further damage and keep a record of the cost
- Let the insurer inspect the truck and your records before repair or disposal
What to send to bind physical damage on a financed semi
- 1.Year, make, model and VIN of the tractor and any trailer
- 2.The buyer's order or bill of sale
- 3.The stated amount you want and its basis
- 4.Equipment added after the factory: sleeper, APU, chrome, electronics
- 5.The lender's exact name and mailing address for the loss payee
- 6.The lender's written terms: coverages, maximum deductible, insured value
- 7.When coverage must start and when the truck is released
- 8.Where the certificate goes, and the finance contact's name
If I'm leased on to a carrier, does its policy cover my truck?
Read the lease first: 49 CFR 376.12(j)(1) says it "shall further specify who is responsible for providing any other insurance coverage for the operation of the leased equipment." Under ISO's motor carrier form, the carrier's hired auto physical damage coverage does not reach a truck "leased, hired, rented or borrowed with a driver." Anything else turns on the carrier's declarations; get it in writing.
Does physical damage on my tractor cover my trailer?
Only if the trailer is itself a covered auto for physical damage. The form's definition of auto includes a "trailer" or semitrailer designed for travel on public roads, but on specifically described autos, only units shown with a premium charge are covered. Progressive says physical damage cannot be applied to non-owned trailers under an interchange agreement.
Where these answers come from
Each entry carries the exact words of the source so you can check it yourself. Forms, rules and carrier pages change; read the current version before acting.
- 1. ISO CA 00 20 12 23, Motor Carrier Coverage Form, Section IV Physical Damage Coverage, A.1 (FC&S copy on Touchpoint Markets)
“We will pay for "loss" to a covered "auto" or its equipment under:”
assets.touchpointmarkets.com, accessed October 3, 2026. ISO form text; your carrier's own form and endorsements control your policy. - 2. ISO CA 00 20 12 23, Section IV A.1.a, Comprehensive Coverage
“Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 3. ISO CA 00 20 12 23, Section IV A.1.b, Specified Causes Of Loss Coverage
“(1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or derailment of any conveyance transporting the covered "auto".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 4. ISO CA 00 20 12 23, Section IV A.1.c, Collision Coverage
“Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 5. ISO CA 00 20 12 23, Section IV A.3, Glass Breakage, Hitting A Bird Or Animal, Falling Objects Or Missiles
“If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehensive Coverage: a. Glass breakage; b. "Loss" caused by hitting a bird or animal;”
assets.touchpointmarkets.com, accessed October 3, 2026 - 6. ISO CA 00 20 12 23, Section IV A.2, Towing And Labor
“We will pay up to the limit shown in the Declarations for towing and labor costs incurred each time a covered "auto" that is a "private passenger type", light truck or medium truck is disabled.”
assets.touchpointmarkets.com, accessed October 3, 2026. The form's definitions section does not define light truck or medium truck. - 7. ISO CA 00 20 12 23, Section IV C.1.a, Limits Of Insurance
“"Loss" to any one covered "auto" is the lesser of: (1) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (2) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality.”
assets.touchpointmarkets.com, accessed October 3, 2026. The paragraph opens "The most we will pay for:". - 8. ISO CA 00 20 12 23, Section IV D, Deductible
“For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by the applicable deductible shown in the Declarations prior to the application of the Limit of Insurance, provided that:”
assets.touchpointmarkets.com, accessed October 3, 2026. D.1 says the Comprehensive or Specified Causes Of Loss deductible applies only to loss caused by theft or mischief or vandalism, or by all perils, as the declarations show. - 9. ISO CA 00 20 12 23, Section I, Covered Autos
“Item Two of the Declarations shows the "autos" that are covered "autos" for each of your coverages. The following numerical symbols describe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 10. ISO CA 00 20 12 23, Section I A, covered auto symbol 67, Specifically Described Autos
“Only those "autos" described in Item Three of the Declarations for which a premium charge is shown”
assets.touchpointmarkets.com, accessed October 3, 2026 - 11. ISO CA 00 20 12 23, Section VI B, definition of "auto"
“"Auto" means: 1. A land motor vehicle, "trailer" or semitrailer designed for travel on public roads; or”
assets.touchpointmarkets.com, accessed October 3, 2026 - 12. ISO CA 00 20 12 23, Section IV C.2, Limits Of Insurance
“An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total "loss".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 13. ISO CA 00 20 12 23, Section IV C.3, betterment
“If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 14. ISO CA 00 20 12 23, Section IV B.4, exclusions
“We will not pay for "loss" due and confined to: a. Wear and tear, freezing, mechanical or electrical breakdown. b. Blowouts, punctures or other road damage to tires.”
assets.touchpointmarkets.com, accessed October 3, 2026. The form adds that the exclusion does not apply to loss resulting from the total theft of a covered auto. - 15. ISO CA 00 20 12 23, Section IV B.5, diminution in value
“We will not pay for "loss" to a covered "auto" due to "diminution in value".”
assets.touchpointmarkets.com, accessed October 3, 2026. Section VI defines diminution in value as the actual or perceived loss in market value or resale value which results from a direct and accidental loss. - 16. ISO CA 00 20 12 23, Section IV B.2.e, electronic equipment exclusion
“Any electronic equipment, without regard to whether this equipment is permanently installed, that reproduces, receives or transmits audio, visual or data signals.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 17. ISO CA 00 20 12 23, Section IV B.3, exception to the electronic equipment exclusion
“Exclusions 2.e. and 2.f. do not apply to equipment designed to be operated solely by use of the power from the "auto's" electrical system that, at the time of "loss", is:”
assets.touchpointmarkets.com, accessed October 3, 2026. The four conditions that follow: permanently installed in or upon the covered auto; removable from a permanently installed housing unit; an integral part of the same unit housing such equipment; or necessary for the normal operation of the auto or the monitoring of its operating system. - 18. ISO CA 00 20 12 23, Section IV C.1.b, electronic equipment limit
“All electronic equipment that reproduces, receives or transmits audio, visual or data signals in any one "loss" is $1,000, if, at the time of "loss", such electronic equipment is:”
assets.touchpointmarkets.com, accessed October 3, 2026. The conditions that follow are (1) the location below, (2) removable from such a permanently installed housing unit, or (3) an integral part of such equipment. - 19. ISO CA 00 20 12 23, Section IV C.1.b(1), electronic equipment in a non-factory location
“Permanently installed in or upon the covered "auto" in a housing, opening or other location that is not normally used by the "auto" manufacturer for the installation of such equipment;”
assets.touchpointmarkets.com, accessed October 3, 2026 - 20. ISO CA 00 20 12 23, Section III, Trailer Interchange Coverage, A.1
“We will pay all sums you legally must pay as damages because of "loss" to a "trailer" you don't own or its equipment under:”
assets.touchpointmarkets.com, accessed October 3, 2026. Section IV B.2.a separately excludes a covered auto while in anyone else's possession under a written trailer interchange agreement. - 21. ISO CA 00 20 12 23, Section V B.5.f, Hired Auto Physical Damage
“For Hired Auto Physical Damage Coverage, any covered "auto" you lease, hire, rent or borrow is deemed to be a covered "auto" you own. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 22. ISO CA 00 20 12 23, Section V A.2, Duties In The Event Of Accident, Claim, Suit Or Loss
“We have no duty to provide coverage under this Policy unless there has been full compliance with the following duties:”
assets.touchpointmarkets.com, accessed October 3, 2026 - 23. ISO CA 00 20 12 23, Section V A.2.a, notice
“you must give us or our authorized representative prompt notice of the "accident" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred;”
assets.touchpointmarkets.com, accessed October 3, 2026 - 24. ISO CA 00 20 12 23, Section V A.2.c, duties after a loss to a covered auto
“(1) Promptly notify the police if the covered "auto" or any of its equipment is stolen. (2) Take all reasonable steps to protect the covered "auto" from further damage. Also keep a record of your expenses for consideration in the settlement of the claim. (3) Permit us to inspect the covered "auto" and records proving the "loss" before its repair or disposition.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 25. ISO CA 00 20 12 23, Section V A.4, Loss Payment, Physical Damage Coverages
“At our option, we may: a. Pay for, repair or replace damaged or stolen property; b. Return the stolen property at our expense. We will pay for any damage that results to the "auto" from the theft; or c. Take all or any part of the damaged or stolen property at an agreed or appraised value.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 26. ISO CA 00 20 12 23, Section V A.4, sales tax
“If we pay for the "loss", our payment will include the applicable sales tax for the damaged or stolen property.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 27. ISO CA 00 20 12 23, Section V A.1, Appraisal For Physical Damage Loss
“If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire.”
assets.touchpointmarkets.com, accessed October 3, 2026. The paragraph ends: "Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally." - 28. ISO CA 99 28 11 20, Stated Amount Insurance, B.1 Limits Of Insurance (FC&S copy on Touchpoint Markets)
“The most we will pay for any one "loss" to any one covered "auto" is the least of the following amounts:”
assets.touchpointmarkets.com, accessed October 3, 2026. The three amounts are actual cash value, the cost of repairing or replacing with like kind and quality, and the Limit Of Insurance shown in the schedule. The endorsement modifies the Motor Carrier and Business Auto Coverage Forms. - 29. ISO CA 99 28 11 20, Stated Amount Insurance, note under the schedule
“The amount shown in the Schedule or in the Declarations is not necessarily the amount you will receive at the time of "loss" for the described property.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 30. ISO CA 20 71 10 13, Auto Loan/Lease Gap Coverage (IIAT InfoCentral)
“In the event of a total "loss" to a covered "auto" shown in the Schedule or Declarations for which a specific premium charge indicates that Auto Loan/Lease GAP Coverage applies, we will pay any unpaid amount due on the lease or loan for a covered "auto", less: 1. The amount paid under the policy's Physical Damage Coverage; and”
iiat.org, accessed October 3, 2026. 10 13 edition, the one hosted on the open web. It modifies the Auto Dealers, Business Auto and Motor Carrier Coverage Forms. - 31. ISO CA 20 71 10 13, Auto Loan/Lease Gap Coverage, amounts deducted
“2. Any: a. Overdue lease/loan payments at the time of the "loss"; b. Financial penalties imposed under a lease for excessive use, abnormal wear and tear or high mileage; c. Security deposits not returned by the lessor; d. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan or lease; and e. Carry-over balances from previous loans or leases.”
iiat.org, accessed October 3, 2026 - 32. ISO CA 99 23 10 13, Rental Reimbursement Coverage, B (FC&S copy on Touchpoint Markets)
“We will pay for rental reimbursement expenses incurred by you for the rental of an "auto" because of "loss" to a covered "auto".”
assets.touchpointmarkets.com, accessed October 3, 2026. 10 13 edition, the one hosted on the open web; it modifies the Motor Carrier Coverage Form. - 33. ISO CA 99 23 10 13, Rental Reimbursement Coverage, E
“This coverage does not apply while there are spare or reserve "autos" available to you for your operations.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 34. ISO CA 99 60 10 13, Audio, Visual And Data Electronic Equipment Coverage Added Limits (IIAT InfoCentral)
“The sublimits in Paragraph C.1.b. of the Limits Of Insurance provision in the Business Auto and Motor Carrier Coverage Forms and in Paragraph 4.a.(2) of the Limits Of Insurance provision in the Auto Dealers Coverage Form are in addition to the Per "Loss" Limit shown in the Schedule of this endorsement.”
iiat.org, accessed October 3, 2026. 10 13 edition, the one hosted on the open web. - 35. ISO CA 99 44 10 13, Loss Payable Clause, A (IIAT InfoCentral)
“We will pay, as interest may appear, you and the loss payee named in the policy for "loss" to a covered "auto".”
iiat.org, accessed October 3, 2026 - 36. 49 CFR 387.5, definition of financial responsibility, eCFR
“Financial responsibility means the financial reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability amounts set forth in this subpart covering public liability.”
ecfr.gov, accessed October 3, 2026. Pulled through the eCFR versioner API, point in time 2026-09-30. - 37. 49 CFR 387.9, Schedule of Limits, Public Liability, row 1, eCFR
“For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) Property (nonhazardous) $750,000”
ecfr.gov, accessed October 3, 2026. Pulled through the eCFR versioner API, point in time 2026-09-30. The table is headed "Schedule of Limits—Public Liability". - 38. FMCSA, Insurance Filing Requirements, Insurance Filing Requirements Chart (page last updated 2026-03-26)
“Entity Type Vehicle Type BIPD Insurance Requirement Cargo Insurance Requirement Surety Bond/Trust Fund Agreement Applicable Form(s)”
fmcsa.dot.gov, accessed October 3, 2026. The chart's column headings, repeated for each table. Read with Node's fetch, since curl gets a 403. The chart labels its carrier tables with 49 CFR 387.303, a section eCFR marks suspended indefinitely; FMCSA's page still applies it. No figure from 387.303 is used here. - 39. Utah Code 31A-22-302(1), required components of motor vehicle insurance policies (effective 2026-05-06)
“Every policy of insurance or combination of policies purchased to satisfy the owner's or operator's security requirement of Section 41-12a-301 shall include:”
le.utah.gov, accessed October 3, 2026. The list that follows is liability under 31A-22-303 and 304, uninsured motorist, underinsured motorist, and personal injury protection (not required for trailers and semitrailers). - 40. 49 CFR 376.12(j)(1), lease requirements, insurance, eCFR
“The lease shall further specify who is responsible for providing any other insurance coverage for the operation of the leased equipment, such as bobtail insurance.”
ecfr.gov, accessed October 3, 2026. Pulled through the eCFR versioner API, point in time 2026-09-30. - 41. Progressive Commercial, Physical Damage Coverage
“Physical Damage is a general term for a group of insurance coverages that protect your vehicle.”
progressivecommercial.com, accessed October 3, 2026. A carrier's description of its own coverage. - 42. Progressive Commercial, Physical Damage Coverage, who needs it
“Fire and Theft with CAC insurance is a limited form of Comprehensive insurance specially designed for specific heavy truck types.”
progressivecommercial.com, accessed October 3, 2026. The same page says Fire and Theft with CAC does not cover windshield claims. - 43. Progressive Commercial, Physical Damage Coverage, exceptions and restrictions
“You must select either Comprehensive or Fire and Theft with CAC coverage to have Collision coverage included”
progressivecommercial.com, accessed October 3, 2026 - 44. Progressive Commercial, Physical Damage Coverage, who needs it
“If your vehicle is leased, you probably are required to have Physical Damage insurance. If your vehicle is fully paid for, Physical Damage coverage is optional.”
progressivecommercial.com, accessed October 3, 2026. Quoted as what Progressive says; any requirement is the lender's or lessor's. - 45. Progressive Commercial, Physical Damage Coverage, deductibles and other details
“When you select Physical Damage insurance, you also are required to submit a stated amount, which is your best estimate of the current value of your vehicle.”
progressivecommercial.com, accessed October 3, 2026. Progressive's own quoting practice. - 46. Progressive Commercial, Physical Damage Coverage, deductibles
“Choosing a higher deductible is an easy way to lower the price of your insurance.”
progressivecommercial.com, accessed October 3, 2026 - 47. Progressive Commercial, Physical Damage Coverage, exceptions and restrictions
“Physical Damage insurance cannot be applied to non-owned trailers, such as those used as part of a Trailer Interchange Agreement.”
progressivecommercial.com, accessed October 3, 2026 - 48. Progressive Commercial, Stated Amount for Commercial Vehicles
“It also takes the condition of your vehicle into account and includes special equipment or upgrades you've added to your business's car or truck.”
progressivecommercial.com, accessed October 3, 2026 - 49. Progressive Commercial, Stated Amount for Commercial Vehicles, stated amounts vs. actual cash value
“After an accident, an insurer will look at the vehicle's stated amount and actual cash value (ACV) and pay whichever is less.”
progressivecommercial.com, accessed October 3, 2026 - 50. Progressive Commercial, Stated Amount for Commercial Vehicles, the florist example
“if a florist states that their delivery van is worth $50,000, they will pay an insurance premium based on that amount. However, the florist would only receive the ACV of $35,000 after a total loss accident.”
progressivecommercial.com, accessed October 3, 2026 - 51. Progressive Commercial, Stated Amount for Commercial Vehicles, how to determine a stated amount
“The best way to determine a stated amount is to consult a publication that specializes in valuing vehicles, such as Price Digests or Truck Paper”
progressivecommercial.com, accessed October 3, 2026 - 52. Progressive Commercial, Stated Amount for Commercial Vehicles, how to determine a stated amount
“Dealerships, manufacturers and lending or financial institutions can also assist you in calculating your stated amount.”
progressivecommercial.com, accessed October 3, 2026 - 53. Progressive Commercial, Commercial Truck Insurance Cost, adjust your coverages and limits
“For example, physical damage coverage is usually required for trucks with an outstanding loan or lease.”
progressivecommercial.com, accessed October 3, 2026. Quoted as what Progressive says; the requirement itself is the lender's or lessor's. - 54. Progressive Commercial, Commercial Truck Insurance Cost, 2025 new for-hire truck policies
“The national average monthly commercial truck insurance cost with Progressive Commercial ranged from $734 for specialty truckers to $926 for transport truckers.”
progressivecommercial.com, accessed October 3, 2026. Progressive's own figure, as printed on 2026-10-03; the page carries no date of its own. Progressive's physical damage, stated amount and semi truck pages and GEICO's commercial truck insurance cost page (https://www.geico.com/commercial-auto-insurance/truck-insurance/commercial-truck-insurance-cost/), read the same day, print no physical-damage-only figure. - 55. Progressive Commercial, Commercial Truck Insurance Cost, footnote to the average
“2025 new policy premium per power unit for liability and physical damage coverage for policies with no driver violations.”
progressivecommercial.com, accessed October 3, 2026 - 56. Progressive Commercial, Commercial Truck Insurance Cost, after the average
“Remember, these numbers are only averages. Your rate depends on many factors, like coverage needs and driving history.”
progressivecommercial.com, accessed October 3, 2026 - 57. Progressive Commercial, Semi Truck Insurance, motor truck cargo
“Motor truck cargo covers what you're carrying, rather than your rig.”
progressivecommercial.com, accessed October 3, 2026. A carrier's description of its own coverage. - 58. PACCAR Financial, About Us
“PACCAR is a global technology leader in the design, manufacture and customer support of premium light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates.”
paccarfinancial.com, accessed October 3, 2026. The next sentence says PACCAR "also designs and manufactures advanced diesel engines, provides financial services, information technology, and distributes truck parts related to its principal business." - 59. PACCAR Financial, home page
“PACCAR Financial is the dedicated finance partner for Kenworth and Peterbilt trucks.”
paccarfinancial.com, accessed October 3, 2026. PACCAR Financial's pages publish no insurance requirements; what it asked for on one purchase comes from Redoubt's records. - 60. Redoubt text to a client buying a Peterbilt financed through PACCAR Financial, 2026-07-09
“I wrote down what PACCAR/the dealer is asking for: • proof of physical damage on the insurance certificate • max $2,500 deductible • insured amount of $74,002.94 or ACV”
Redoubt agency records, accessed July 9, 2026. Redoubt's own text (speaker R) summarizing the dealer and lender paperwork for one purchase. - 61. Redoubt call with a client reading his Peterbilt dealer paperwork, 2026-07-09
“And it just says it has to go loss payee listed as the following PACCAR financial.”
Redoubt agency records, accessed July 9, 2026. Spoken by the client (speaker P), reading the paperwork aloud; call transcript, quoted as transcribed. - 62. Redoubt call with a buyer financing a truck at a dealership, about the insured value on a certificate, 2026-07-30
“It has to it it has to, at minimum, be the finance amount.”
Redoubt agency records, accessed July 30, 2026. Spoken by the buyer (speaker P), not by a lender; the record tags the lender as the party behind the requirement. Call transcript, quoted as transcribed. - 63. Redoubt text to the same client, financing a replacement truck through a dealer, 2026-07-23
“I just confirmed with my underwriters, they need the name and address of the company financing the dodge to add them as loss payee on the policy.”
Redoubt agency records, accessed July 23, 2026. Same client as the 2026-07-09 Peterbilt records; a different truck.
A lender or dealer will not release the truck until the insurance names it
Financed semis and vans: the loss payee, physical damage, temporary cover and the certificate the finance desk needs.
Elsewhere on the site
Buying a financed semi?
Text Redoubt the lender's insurance requirements, the VIN and the buyer's order. We will go through what the paperwork asks for, what value and deductible fit it, and what the underwriter needs from you before the truck is released.
This is general insurance information, not legal advice or a coverage determination. The policy forms, the endorsements the carrier issues, and the requirement in writing from whoever is asking control.