Physical Damage Insurance coverage is for your truck and trailer. This coverage is for repair or replacement for damage resulting from things such as collision, fire, theft, hail, windstorm, earthquake, flood, mischief, or vandalism. Your premium is based on the value of your equipment. This coverage is not required by law, but if you finance your vehicle the lien holder will require it. It is important to insure your vehicle for the real value. Not over or under value the vehicle as the insurance company will only pay market value at the time of the loss.