Physical Damage Insurance: What You Need to Know

Physical damage insurance is a type of coverage that helps provide financial protection for your vehicle in the event of damage caused by accidents, theft, vandalism, or other covered incidents. This type of insurance is also known as collision and comprehensive coverage.

What Does Physical Damage Insurance Cover?

Physical damage insurance typically covers damage to your vehicle caused by:

It is important to note that physical damage insurance typically does not cover damage caused by normal wear and tear, mechanical breakdowns, or damage caused by driving under the influence of drugs or alcohol.

How Does Physical Damage Insurance Work?

When you purchase physical damage insurance, you will typically be asked to choose your deductible, which is the amount you will need to pay out of pocket before your insurance coverage kicks in. The higher your deductible, the lower your insurance premium will be.

If your vehicle is damaged in a covered event, you will need to file a claim with your insurance company. Your insurance company will then send an adjuster to inspect the damage and determine the cost of repairs. Once the cost of repairs has been determined, your insurance company will pay for the repairs, up to the limit of your coverage.

If the cost of repairs exceeds the limit of your coverage, you will be responsible for paying the difference out of pocket. It is important to review your policy carefully and make sure you understand the limits of your coverage before you purchase physical damage insurance.

FAQ

What is the difference between collision and comprehensive coverage?

Collision coverage helps pay for repairs to your vehicle if it is damaged in a collision with another vehicle or object, such as a tree or telephone pole. Comprehensive coverage helps pay for repairs to your vehicle if it is damaged by something other than an accident, such as theft, vandalism, or natural disasters.

Do I need physical damage insurance if I have liability coverage?

Liability coverage only covers damage or injuries you cause to others in an accident. Physical damage insurance is optional but recommended if you want to protect your own vehicle in the event of an accident, theft, or other covered event.

Can I choose my own repair shop?

Some insurance companies may have a preferred network of repair shops that they work with, but you may be able to choose your own repair shop if you are not satisfied with the insurance company’s recommended shop. However, you will need to make sure that the repair shop is approved by your insurance company and that the repairs will be covered under your policy.

Will my insurance premium increase if I file a physical damage insurance claim?

It is possible that your insurance premium may increase if you file a physical damage insurance claim, especially if you have a history of filing claims. However, this will vary depending on your insurance company and your individual policy.

What should I do if my vehicle is damaged in an accident?

If your vehicle is damaged in an accident, you should try to move your vehicle to a safe location and exchange information with the other driver. You should also take pictures of the damage and contact your insurance company as soon as possible to file a claim.