Physical Damage Insurance | Summit Cover

June 24, 2023

Automobiles are indispensable modes of transportation and are considered a basic necessity to travel from one place to another. Physical damage insurance is paramount to protect your vehicles as they are prone to mutilation; you just can’t oversee the damages that may encounter your favorite car in the form of collision, vandalism, or theft. Witnessing your wheels getting damaged by natural disasters or a mere fall of a tree can be too agonizing to cope with.

Typically, physical damage insurance is included in commercial auto insurance, which refers to the coverage provided to compensate for legal bills, medical expenses, and property damage if a business vehicle is involved in an accident; almost all business-owned vehicles are secured via commercial auto insurance.

Normally, the general liability policy plan includes product liability insurance cost, which typically ranges from $500 to $600 per year. If you’re a manufacturer or running a relevant business, it is recommended to invest a little more and avail the benefits of product liability insurance vs general liability coupled with physical damage insurance to ensure maximum security of your vehicles and other properties from the conspirators.

Who Needs Physical Damage Insurance?

Most small-business owners require a similar insurance plan because of the extent of protection it offers to their vehicle(s). You may also be required to sign up for this policy as it assists you in obtaining a vehicle lease or loan. Unexpected repair costs can drench your financial assets and savings. That’s why it is essential to invest in such a policy plan.

Following are a few examples of business industries that are highly dependent on vehicles, thus, becoming more prone to accidents, thefts, and vandalism.

  1. Landscaping

Landscaping refers to enhancing the visuals of a particular area that beautifies the overall image of that land. Tree service companies, lawn care businesses, and landscapers may come in unfortunate contact with fire and storm that may cause the trees to fall, which increases the likelihood of getting insurance to serve as a helping hand when needed.

  1. Construction & Building Contractors

Such locations are always busy with people and vehicles moving around, and the risk of automobile damage increases even more while mounting and unmounting or shifting goods and supplies from one place to another, which is why you must purchase this type of financial backup insurance plan.

  1. Retailers

Most retailers, grocery stores, and florists have invested in one big vehicle that is regularly transporting goods and delivering orders to their clients. The chances of road accidents and loss of income also increase because of the usage of the same routes, which sometimes makes your vehicle out of commission.

  1. Trucking & Towing

Automobiles are almost always on the road, which endangers and sabotages your business of trucking and towing in the form of theft. In such cases, your business growth may be diminished for some time which can cast a huge negative impact on the annual revenue generation. Read more: types of professional liability insurance.

What does Physical Damage Insurance Cover?

Depending on the types of physical damage insurance, financial coverage is provided per the following situations:

  1. Collision Coverage

If your vehicle has collided with another vehicle or other physical objects such as rocks, fences, trees, or animals, the insurance policy will cover for these damages to protect your transportation aid. Therefore, collision coverage is also referred to as collision insurance.

  1. Comprehensive Coverage

The damage caused to your vehicle other than clashing with physical objects is protected via comprehensive coverage. The reasons behind this type of damage include natural disasters such as earthquakes, storms, falling of trees or their sturdy branches, larceny, or malicious trespassing.

  1. Limited Comprehensive Insurance

The automobiles of the policyholders are protected against the combined effect of fire and theft. Therefore, also known as fire and theft with combined additional coverage (CAC). Under this policy, the financial support is provided only against particular threats, therefore also referred to as specified perils insurance.

What Does Physical Damage Insurance Not Cover?

Purchasing such a policy plan is a wise choice to safeguard your business that owns or depends on vehicles, and there exist a few things as an exception, for example, medical bills for the injured whether a driver or passenger, damage to someone else’s vehicle or property, legal expenses, judgments, and settlement costs that are not covered under the policy. For more details visit Summit Cover.


Are you still wondering about ‘What is physical damage insurance?’. Simply put, physical damage insurance is a type of insurance that facilitates financial coverage provided to protect your vehicle. However, it is not an all-in-one protection package, rather the consequences caused by some unwanted and unexpected events determine the particular type of assistance that must be provided under the policy plan, which is designed by discussing the terms and conditions and agreeing on mutual terms with the agent of your insurance company.

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