Physical Damage covers damage to your truck or trailer when you hit, or are struck by, another vehicle or another object. This coverage pays to fix your vehicle less the deductible you choose. Physical Damage is one of the top 2 most requested coverages among Owner Operators. Why purchase Physical Damage coverage? If you have a loan on your vehicle, Physical Damage insurance is essential to protect its value. Leased vehicles generally require that the lessee carry Physical Damage insurance for the term of the lease. Even if your vehicle is fully paid off, unless you can afford to handle the out of pocket cost for any damage incurred, you need Physical Damage coverage.