Orlando Harmon
Physical damage insurance is a type of auto insurance that covers the cost of repairs to your vehicle in the event of physical damage. This includes damage caused by collisions, vandalism, fire, and theft. While physical damage insurance is not mandatory in most states, it is often required by lenders for leases and loans. This type of insurance provides financial protection and peace of mind for car owners, especially in the event of unexpected repairs. It's important to note that physical damage insurance does not cover medical expenses, legal fees, or lost income resulting from an accident.
| Characteristics | Values |
|---|---|
| What does it cover? | Damage to the insured vehicle from situations like theft, fire, vandalism, natural calamities, accidents, etc. |
| What does it not cover? | Medical expenses for the injured, damage to someone else’s vehicle or property, legal expenses, judgments, settlements, mechanical issues, maintenance and repairs, etc. |
| Who needs it? | Lenders typically require this type of insurance for leases and loans. Small business owners also benefit from this type of insurance. |
| Types | Collision insurance, comprehensive coverage, fire and theft with combined additional coverage (CAC) |
What You'll Learn
Collision insurance
When purchasing collision insurance, you will need to decide on the amount of your deductible, which is the portion of the repair cost that you agree to pay. A higher deductible will lower your monthly premium, while a lower deductible will result in a higher monthly payment but reduce your financial risk in the event of an accident. Collision insurance can be expensive, but you can save on premiums by choosing a higher deductible.
It is worth noting that collision insurance does not cover all types of damage. For example, it will not cover damage due to theft or vandalism, medical expenses for injured passengers, legal fees, lost income, or property stolen from your car. Additionally, collision insurance will not cover damages to another car after a collision, as this would be covered by the at-fault driver's insurance.
In summary, collision insurance is a valuable form of protection for your vehicle in the event of a collision, providing financial coverage for repairs or replacements. However, it is important to understand the limitations of collision insurance and consider additional coverage for comprehensive protection.
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Comprehensive insurance
- Animal attacks or collisions with animals
- Falling objects, such as branches, rocks, or hail
- Natural disasters, including earthquakes, floods, hurricanes, and tornadoes
- Theft of the vehicle or certain parts of the vehicle
- Vandalism, such as spray painting or break-ins
The cost of comprehensive insurance will depend on various factors, such as the value of the vehicle, the location, and the driver's insurance history. The deductible, or the amount you agree to pay out of pocket, can also impact the price. Choosing a higher deductible is a way to lower the premium, but it's important to select a deductible that you can afford.
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Fire and theft insurance
In some cases, fire and theft insurance can be purchased as part of a comprehensive insurance policy. Comprehensive insurance covers a wide range of incidents, including fire, theft, road accidents, and natural disasters. It also includes additional benefits such as breakdown cover and windscreen repair. Comprehensive insurance tends to be more affordable than fire and theft insurance, as it offers more comprehensive protection.
When deciding whether to opt for fire and theft insurance or comprehensive insurance, it is important to consider your vehicle's value, the likelihood of it being stolen or damaged in a fire, and your own financial circumstances. Additionally, it is worth noting that lenders typically require physical damage coverage, including fire and theft insurance, for leases and loans.
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Vandalism and natural disaster insurance
The cost of comprehensive insurance varies depending on your insurer and state but typically ranges from $50 to $100 per year. The deductible for comprehensive insurance also varies depending on your insurer and state but typically ranges from $0 to $2,500. It's important to note that comprehensive insurance does not cover any personal items within the car if they are stolen or damaged during a vandalism incident. Coverage for personal belongings would come from your renters or homeowners insurance.
If your car has been vandalized, there are several steps you should take to file a claim with your insurance company:
- Document the damage: Take photos of the damage and note your parking location, the date, and time you discovered the damage.
- File a police report: Contact the local police department and file a report as soon as possible. Many insurance companies require a police report before submitting an insurance claim.
- Contact your insurance company: Provide as much information as possible, including the official police report. Your insurance company will help you determine if you should file a claim and may send an assessor to evaluate the damage.
- Meet with the claims adjuster: Vandalism claims often require an inspection by a claims adjuster, so you will need to set up a time for them to view the vehicle.
- Have the car repaired: Once your insurance company approves your claim, take your car to the repair shop. Your insurance company may provide a list of preferred repair facilities, but you can usually choose your own repair shop.
In most cases, filing a claim for vandalism will not raise your insurance rates. However, there is a possibility that your rates could increase due to the number of claims you've made or if you have a history of multiple small claims.
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Auto glass insurance
The cost of auto glass insurance can vary depending on the state and the insurance provider. In some states, auto glass insurance is automatically included in comprehensive auto policies, while in others, it may be offered as a separate coverage option for an additional fee. The availability and cost of auto glass insurance also depend on the deductible amount, which is the portion of the repair cost that the policyholder must pay out-of-pocket. Some insurance companies offer a $0 deductible option for glass-only replacement claims, meaning the insured party will not have to pay anything out of pocket for the repairs.
It is important to note that auto glass insurance typically does not cover damage caused by collisions with other vehicles or stationary objects. In these cases, collision coverage would apply instead. Additionally, auto glass insurance may not cover damage caused by normal wear and tear or if the vehicle is used for illegal or criminal activities.
When purchasing auto glass insurance, it is important to carefully review the policy to understand what is covered and what is not. It is also essential to compare prices and coverage options from multiple insurance providers to find the best fit for your needs.
Overall, auto glass insurance can provide valuable protection against the unexpected cost of repairing or replacing damaged auto glass, helping to ensure that you can safely get back on the road as soon as possible.
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Frequently asked questions
Physical damage insurance covers the cost of repairs to your vehicle in the event of an accident, theft, fire, or vandalism. It does not cover medical expenses for you or your passengers, legal fees, lost income, or property stolen from your car.
Physical damage insurance provides financial protection and peace of mind in the event of an accident or other damage to your vehicle. It can help you avoid the high cost of repairs or replacement, especially if your vehicle is leased or financed.
Physical damage insurance typically includes collision insurance and comprehensive insurance. Collision insurance covers damage to your vehicle caused by physical contact with another vehicle or object, such as a tree, guardrail, or building. Comprehensive insurance covers damage caused by incidents other than collisions, such as fire, theft, vandalism, windstorms, floods, and falling objects.
Physical damage insurance does not cover medical expenses, legal fees, lost income, or property stolen from your vehicle. It also does not cover mechanical breakdown, regular wear and tear, or maintenance.
