Physical Damage Coverage - Auto Insurance

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What is Physical Damage Coverage in Car Insurance?

<lingo>Physical damage coverage is a type of auto insurance coverage. It is actually an umbrella term that covers a selection of different physical damage coverage types, such as collision, comprehensive, and fire and theft coverage. All physical damage coverage aims to protect your vehicle in the event of damage. Many states don’t require physical damage coverage for registered vehicles, so it is often purchased in addition to the required liability-only insurance. Liability-only insurance covers property damage or medical bill claims from an accident that was primarily your fault. On the other hand, physical damage coverage goes above and beyond liability coverage to protect your own vehicle as well. Having physical damage coverage is the best way to ensure that your vehicle will be protected if it gets damaged in an accident or by any other cause.</lingo>

Physical damage coverage clearly and briefly explained

Most physical damage coverage includes collision insurance and/or comprehensive insurance. Again, unlike liability coverage, collision and comprehensive coverage insures your vehicle, not the other driver’s vehicle. Collision insurance and comprehensive insurance are similar types of physical damage coverage, but they are not exactly the same. Collision coverage is just what it sounds like; it covers collision-related damage to your vehicle. If you get in an accident and wreck your fender or door, collision coverage should pay for repairs.


<twitter>Having physical damage coverage is the best way to ensure that your vehicle will be protected if it gets damaged in an accident or by any other cause.</twitter>



Comprehensive insurance covers non-collision related damage, such as damage caused by theft, vandalism, fire, animals, or natural disasters. For this reason, comprehensive coverage is often called “other than collision” insurance or OTC. If a tree limb falls on your vehicle during a thunderstorm or your car is stolen from your driveway, this is where comprehensive coverage can help.


When physical damage coverage (such as collision and/or comprehensive coverage) and liability coverage are both included in an auto insurance policy, it is often called having “full coverage.” Therefore, drivers who want full coverage for their vehicles should purchase physical damage coverage in addition to liability-only insurance. In this way, they will be doing their utmost to protect themselves from paying out-of-pocket for vehicle repair or replacement.


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