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  • Brendan Kelly

What is Transportation Coverage?

Transportation coverage ensures that vehicles are sufficiently covered. This can apply to personal auto coverage, but is also used by businesses that are transporting products. It is essential to ensure your business is covered when it comes to your company’s vehicles and goods in transit from one location to another by any means of transport. Transportation coverage helps limit the liability you may face in the case of an auto accident, damage, loss, or delay of goods being transported.



Examples of damage that are covered under transportation coverage include theft, fire, and accidental damage. The level of transportation coverage you choose will depend on if you require coverage for personal or business reasons.


Within the broader transportation insurance space, AM RE focuses on commercial auto reinsurance. This is made up of three primary lines of coverage; Auto Physical Damage, Motor Truck Cargo, and Commercial Liability. In this piece we will discuss Auto Physical Damage (commonly referred to as APD).


To learn more about Motor Truck Cargo or Commercial Liability, you can visit our posts on these topics in the related posts section below.


Who Needs Auto Physical Damage Coverage?


Unlike auto liability insurance which is mandatory, auto physical damage can be purchased voluntarily. However when purchasing commercial vehicle coverage, its important to include auto physical damage coverage. If you decide not to purchase APD coverage, be sure that your business can afford to replace a totaled vehicle in the event of a loss occurrence.


If you choose auto physical damage coverage, it will cover losses from:

  • Collisions with another vehicle

  • Fire

  • Theft

  • Accidents involving an animal

  • Falling objects

  • Vandalism


Physical damage coverage is a general term for a group of insurance coverage that protects your vehicle, including collision insurance, fire and theft insurance, and comprehensive insurance.


Comprehensive and collision are the two types of APD coverage. Collision insurance provides coverage for your vehicle if damaged in an accident, whether from colliding with another object or overturning. Comprehensive insurance protects your vehicle if it is damaged by something other than a collision or if the vehicle is stolen. Fire and theft will cover you if your vehicle is stolen or damaged by fire.


Does AM RE offer Auto Physical Damage?


Here at AM RE, we reinsure Auto Physical Damage lines. We offer Property Casualty treaty reinsurance using a Quota Share Model, working as a reinsurance intermediary. Transportation MGAs are evaluated both historically and at the underwriting level. Despite many reinsurers retracting from transportation, we are committed to writing profitable business within this line through our innovative model. We have the experience, track record, and instant access to established and profitable business to generate industry-leading underwriting results year over year.

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