Auto physical damage (APD) insurance covers repair or replacement costs for a commercial vehicle itself after a collision or another covered loss, as opposed to liability coverage, which pays for injury or damage the vehicle causes to someone else. It is built around two core coverages: collision and comprehensive. This distinction matters because a standard commercial auto liability policy protects the client’s business from third-party claims, but it does nothing to repair or replace the client’s own vehicle after a loss. That is where an APD program comes in.
Collision and Comprehensive: The Two Core Coverages
APD insurance is made up of two components that respond to different kinds of losses.
- Collision coverage pays to repair or replace an insured vehicle after it strikes another vehicle or object, or after a rollover, regardless of who was at fault.
- Comprehensive coverage pays for damage to the vehicle from causes other than a collision, including fire, theft, vandalism, windstorm, hail, and falling objects.
Together, these two coverages address most of the physical loss exposure a commercial vehicle owner faces day to day, from a fender-bender on the road to hailstorm damage while parked overnight.
Who APD Coverage Is Built For
APD coverage applies broadly across commercial transportation, from a single private driver to a large carrier. MRM Group’s program is built specifically for niche transportation businesses, covering both trucking and non-trucking insureds. That includes owners and operators of private vehicles, commercial fleets, carriers, agricultural vehicles, and construction vehicles.
This breadth matters for retail agents because transportation risk is not one-size-fits-all. An owner-operator hauling freight has a different exposure profile than a landscaping company running a fleet of trucks, or an agricultural operation moving equipment between job sites. A wholesale APD program built around transportation, rather than a generic commercial auto form, is often better positioned to underwrite these accounts on their own terms.
It is worth noting that auto physical damage coverage is not federally mandated the way liability coverage is. Motor carriers operating in interstate commerce are required by federal law to carry minimum levels of financial responsibility for bodily injury and property damage to others, with minimums set at $750,000 for most general freight carriers and higher for hazardous materials haulers. Physical damage coverage on the vehicle itself is not part of that federal requirement, which means it is often the client’s lender, lease agreement, or own risk tolerance, not a regulator, that drives the decision to carry it.
Why Retail Agents Look to a Wholesale Market for This Line
Beyond the coverage itself, claims handling is often what separates a good APD program from a generic one. MRM Group positions its program around fast, hands-on claims service, with underwriting expertise backed by access to specialized claims administrators for every insured event. For a transportation client, a damaged vehicle sitting idle is lost revenue, so how quickly a claim moves matters as much as what the policy covers on paper.
How to Place an Auto Physical Damage Risk with MRM Group
MRM Group’s products are sold exclusively through insurance brokers and wholesale intermediaries. Contact us today to submit a transportation risk or request a quote.
Frequently Asked Questions (FAQs)
-
What’s the difference between auto physical damage and auto liability coverage?
Liability coverage pays for injury or property damage the insured vehicle causes to other people. Auto physical damage coverage pays to repair or replace the insured’s own vehicle after a covered loss, through collision and comprehensive coverage.
-
Does auto physical damage insurance cover owner-operators?
Yes. MRM Group’s APD program is built for both trucking and non-trucking insureds, which includes owner-operators as well as larger commercial fleets.
-
What types of vehicles can be covered under an APD program?
MRM Group’s program covers a broad range of commercial vehicles, from private drivers and commercial fleets to carriers, agricultural vehicles, and construction vehicles.
-
How do I submit a transportation risk to MRM Group’s APD program?
Contact MRM Group at 800-815-0060, or use the applications and brochures available on the company’s Documents page to start a submission.
