Workers' Comp & Auto · Insurance Term
Auto Physical Damage (Comprehensive and Collision)
Definition
Auto physical damage coverage pays to repair or replace your own business vehicles when they are damaged. It has two parts: collision, for crashes, and comprehensive (also called other than collision), for things like theft, hail, fire, flood and vandalism.
In Plain English
Liability coverage on a commercial auto insurance policy pays for damage you do to others. Physical damage coverage protects your own vehicles. Which vehicles it covers depends on the covered auto symbols shown on your policy.
Losses are usually settled at actual cash value, meaning the vehicle's value at the time of loss, less your deductible. Comprehensive and collision often carry separate deductibles. Lenders and leasing companies typically require physical damage coverage on financed vehicles.
Older vehicles that are owned outright may not be worth insuring for physical damage. Compare the premium with the vehicle's value and your ability to replace it.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a property management company's maintenance truck is worth about $30,000. Hail dents the hood and roof, and the repair estimate is $6,000. With a $1,000 comprehensive deductible, the insurer would typically pay $5,000.
Why It Matters for Texas Property Owners
Hail is a frequent cause of comprehensive claims in Texas. If you park company vehicles outside, comprehensive coverage and covered parking both matter more here than in many states.
What to Watch For
- Check which vehicles carry comprehensive, collision or both.
- Review deductibles for each coverage and vehicle.
- Ask whether rental reimbursement is included if a vehicle is out of service.
- Remove physical damage from vehicles that are no longer worth insuring.
Last updated October 14, 2026 · Primesure editorial team · How We Write