Deductibles, downtime and getting a truck back on the road
Rental reimbursement, loss of use and the coverages that decide how long a damaged truck stops your revenue.
For a business with one or two trucks, the repair bill is not the biggest cost of an accident. The downtime is. A truck in the shop for three weeks is three weeks of revenue that does not arrive, and standard policies do very little about that unless you asked for it.
Choosing a physical damage deductible
The same logic as personal auto, applied to a business balance sheet. Higher deductibles lower the premium, and the question is whether the business can absorb the loss without disrupting operations. Many businesses take 1,000 dollars on newer trucks and 2,500 on older ones.
The coverages that address downtime
- Rental reimbursement for commercial vehicles, which pays for a substitute truck while yours is repaired, subject to a daily limit and a maximum
- Loss of use or downtime coverage, which pays a daily amount when a substitute is not available, common on tractor and trailer policies
- Towing and roadside assistance, which matters more on a heavy truck than most people budget for
Check the daily limit against what a comparable truck actually rents for locally. A 100 dollar daily limit does not rent a box truck.
Getting the repair moving
- Report the claim the same day, because heavy truck parts and body shop scheduling are the long poles
- Take photographs before the truck is towed
- Send the adjuster your registration, the driver information and the police report in one package rather than in pieces
- Ask about a direct repair shop if speed matters more than choosing your own shop
- Keep every receipt for towing, storage and the substitute vehicle
Total loss on a work truck
Actual cash value on a commercial vehicle should account for the upfit: the bed, the lift gate, the shelving, the wrap. If those were not disclosed when the policy was written, they may not be in the valuation. Give your agent the build sheet and get the value stated correctly before you need it.
Plan for the gap
Even with rental coverage there is usually a gap of a few days at the front of a claim. Businesses that keep a relationship with a local rental yard get back to work faster than those making the first call after the accident.
We will structure it around your operation
Tell us how many days off the road would actually hurt and we will build the coverage to that. Call (956) 687-3334. Se habla español.
Common follow-up questions
Is rental reimbursement worth it on a commercial policy?
For a one or two truck operation, usually yes. For a fleet with spare capacity, often not.
Does the policy pay lost income?
Auto policies generally do not. Business interruption is a property coverage, and downtime endorsements pay a fixed daily amount rather than your actual profit.
Can I choose my own repair shop?
Yes in Texas. The insurer may recommend one, and cannot require it.
Want this looked at properly?
We are an independent agency in McAllen serving Hidalgo, Cameron and Starr counties. No cost to talk it through.
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