Commercial Physical
Damage in NJ.

Collision and comprehensive — two halves

Physical damage is really two coverages sold together, each with its own deductible:

• Collision — your vehicle hits something (another car, a guardrail, a loading dock) or rolls over. Fault doesn’t matter; collision pays for your truck either way.
• Comprehensive (“other than collision”) — theft, vandalism, fire, flood, hail, falling trees, a deer on Route 78, a cracked windshield, catalytic converter theft. Everything that isn’t a collision.

A third, cheaper option exists: specified perils, which covers a named list (fire, theft, flood) but not vandalism or glass. We rarely recommend it — the savings are small and the gaps are real.

Choosing your deductible

Your deductible is what you pay out of pocket before coverage kicks in, per claim, per vehicle. In NJ commercial we usually write $500 or $1,000.

• $500 deductible — higher premium, lower out-of-pocket. Makes sense on a single owner-operated van where one bad month matters.
• $1,000 deductible — lower premium. The right call for most fleets; you self-insure the small stuff and save the premium difference across every vehicle.

How much you actually get paid

Standard commercial physical damage pays actual cash value (ACV) — the depreciated market value of the vehicle at the moment of loss, not what you paid and not what a new one costs. A 2018 Transit that’s totaled pays out as a 2018 Transit, minus mileage and wear.

For specialty or upfitted vehicles — a $40K box truck with a $25K refrigeration unit and shelving — ACV alone can leave a painful gap. We can write stated amount or scheduled coverage that accounts for the upfit, so a total loss actually rebuilds your working vehicle. Tell us about the upfit; it changes the form.

When physical damage is worth it — and when to drop it

Unlike liability, physical damage is optional in NJ — unless someone else requires it:

• Financed or leased? Your lender or lessor requires comprehensive and collision, usually with a deductible cap. Non-negotiable until the loan is paid.
• Newer vehicles you couldn’t replace out of pocket? Carry it. A $55K work truck is not a self-insure risk for most small operations.
• Older, paid-off, low-value vehicles? This is where you can save. Once a truck’s ACV drops near a few thousand dollars, the premium you pay for physical damage can exceed what you’d ever collect. We’ll flag vehicles where dropping it makes sense.

Why your garaging ZIP moves this number

Comprehensive premium is highly local because theft and vandalism are local. NJ’s urban Essex, Hudson, and parts of Union counties carry the state’s highest comprehensive rates — Newark in particular. Catalytic converter theft has driven comprehensive claims up statewide since 2021, and work trucks (high ground clearance, easy access) are prime targets.

If your vehicles garage in Hunterdon, Warren, or Sussex, you benefit from some of the lowest comprehensive rates in the state. We rate on where the vehicle is garaged overnight, so where you park matters as much as where you work.

NJ physical damage cost ranges

Added to a liability policy, physical damage typically adds the following per vehicle per year (clean record, $1,000 deductible, suburban NJ garaging):

• Pickup / sedan: $350–$700
• Service van (Transit, ProMaster, Sprinter): $550–$1,100
• Box truck under 26K GVW: $900–$1,900

Urban garaging (Newark, Jersey City, Paterson) can run 40–80% higher on the comprehensive portion specifically. Upfit/stated-value coverage adds premium proportional to the declared value.