Truck Insurance
Physical Damage Coverage for Financed Trucks: Stated Value, Deductibles and Gaps
By the State & Co Truck team · Updated November 14, 2026
Physical damage coverage pays to repair or replace your own truck and trailer after a collision, fire, theft or other covered loss. If your equipment is financed or leased, your lender will require it.
Stated value: get it right
Most truck policies insure equipment at a stated value you choose. In a total loss, the carrier generally pays the lesser of the stated value or the actual cash value. Set it too high and you pay extra premium for money you may never collect. Set it too low and you take the hit after a total loss. Review stated values every renewal as equipment ages.
Deductibles
A higher deductible lowers your premium, but make sure you could actually pay it after an accident. Many owner-operators choose $1,000 to $2,500. Some carriers offer separate deductibles for collision and comprehensive.
Loss payee and lender requirements
Your lender will be listed as loss payee, and its contract may set a maximum deductible. Send us the lender's requirements up front so the policy matches.
The gap problem
If you owe more on the truck than it is worth, a total loss can leave you paying off equipment you no longer have. Ask your lender or us about gap protection before you need it.
Add-ons worth asking about
- Towing and labor: heavy-truck tows are expensive.
- Rental reimbursement or downtime, where available.
- Trailer interchange if you pull trailers you don't own.
Learn more on our truck insurance page.