The value of the truck and the coverage amount for a Physical Damage policy should be determined based on the actual cash value (ACV) of the insured truck. ACV is calculated by considering factors such as the truck's age, make, model, and condition. The coverage amount should be set to match the ACV, ensuring that the truck can be repaired or replaced in the event of covered damage or loss. It's crucial to periodically reassess the ACV to ensure the coverage amount remains adequate for the truck's current value.