Alyssa Lane
Comprehensive physical damage coverage is an optional add-on to your auto insurance policy that covers damage to your vehicle from risks other than collisions. This includes theft, vandalism, fire, and weather events. It is important to note that comprehensive coverage does not include mechanical issues or maintenance and repairs. Comprehensive physical damage coverage is typically purchased alongside collision insurance, which covers damage to the policyholder's vehicle after a collision with another vehicle or object.
| Characteristics | Values |
|---|---|
| What it covers | Damage to your own vehicle, including theft, fire, flood, vandalism, window breakage, collisions with animals, and weather-related damage |
| What it doesn't cover | Medical expenses, legal fees, lost income, property stolen from the car, damages to another car after a collision |
| When to get it | If you have a loan on your vehicle, or if it's leased |
| Deductible | The amount you agree to pay out of pocket when you have a claim; choosing a higher deductible lowers the price of insurance |
| Stated amount | Your best estimate of the current value of your vehicle, taking into account age, condition, and any permanently attached equipment |
What You'll Learn
Collision insurance
Collision coverage is often expensive to purchase, but premiums may be lowered by choosing a higher deductible. The deductible is the amount that the insured agrees to pay out of pocket when filing a claim. For example, if you choose a $500 deductible and your car repair bills after an accident are $3000, you will receive an insurance check for $2500. Collision insurance is typically optional, but if you have a car loan or lease, your lender or leasing company will likely require you to have it to protect their financial investment.
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Comprehensive insurance
When deciding whether to purchase comprehensive insurance, consider the value of your vehicle and the likelihood of needing major repairs or replacement. Comprehensive insurance can provide peace of mind by covering a range of risks that could result in costly repairs or vehicle replacement.
In summary, comprehensive insurance is an essential component of physical damage coverage, protecting your vehicle from a variety of non-collision incidents. It offers financial protection and helps ensure you can afford to repair or replace your vehicle in the event of a covered loss.
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Fire and theft with CAC
- Lightning or explosion
- Flood or rising waters
- Malicious mischief or vandalism
- The stranding, sinking, burning, collision, or derailment of any conveyance carrying your vehicle
- Collision with an animal
As with comprehensive insurance, fire and theft with CAC insurance does not cover windshield claims or mechanical issues and maintenance and repairs.
When purchasing fire and theft with CAC insurance, you must select a deductible, which is the amount you agree to pay out of pocket when you make a claim. Choosing a higher deductible will lower the price of your insurance. You also need to submit a stated amount, which is your best estimate of the current value of your vehicle, taking into account its age, condition, and any permanently attached equipment.
For example, if your truck is stolen and you have a $1,000 deductible, you would pay the first $1,000. Your fire and theft with CAC insurance would then pay the rest of the cost to replace your vehicle, up to the lower of the actual cash value (ACV) of the vehicle or the stated amount you submitted.
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Combined physical damage insurance
It is important to note that combined physical damage insurance does not cover costs related to personal injury or damage to other people's vehicles. Instead, it focuses on providing protection for the policyholder's vehicle, similar to how comprehensive insurance covers damage to a vehicle from sources other than collisions.
Lenders, lessors, and lienholders often require this type of insurance for financed and leased cars to protect their interests in the event of theft or damage. It is also a requirement for vehicle loan and lease contracts. Combined physical damage insurance is not mandatory in most states, but it is a valuable addition to a conventional auto insurance policy for added protection.
Businesses can also purchase combined physical damage insurance for their vehicles, including cars, trucks, and tractors. This insurance option is particularly beneficial for businesses with high-value vehicles or those operating in industries with a higher risk of auto accidents, such as construction, trucking, and landscaping.
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What comprehensive physical damage covers
Comprehensive physical damage coverage is an optional add-on to your auto insurance policy that covers damage to your vehicle from risks other than collisions. This includes theft, fire, vandalism, falling objects, water damage, and weather events. It is important to note that comprehensive coverage does not include mechanical issues or maintenance and repairs.
Comprehensive physical damage insurance provides protection for your vehicle in a variety of situations. For example, if a tree branch falls on your car and causes damage, comprehensive coverage will reimburse you for the cost of repairs, minus any deductible. Similarly, if your car is vandalised, comprehensive coverage will help cover the cost of repairs. In the unfortunate event that your car is stolen, comprehensive coverage will provide financial protection by reimbursing you for the value of the vehicle, minus the deductible.
Comprehensive coverage also offers financial protection in the case of fire damage to your vehicle. Whether it's due to a natural disaster or an accident, comprehensive coverage will help cover the cost of repairs or replacement. Water damage, such as flooding or damage caused by hail, is also covered under comprehensive physical damage insurance. This type of coverage can provide peace of mind for drivers who live in areas prone to flooding or other water-related incidents.
Another important aspect of comprehensive physical damage coverage is protection against falling objects. For example, if a tree branch or debris falls on your car during a storm, comprehensive coverage will reimburse you for the cost of repairs. Additionally, comprehensive coverage can also include glass coverage, which is beneficial if your windshield or windows are damaged by flying debris or vandalism.
It is worth noting that comprehensive physical damage coverage is separate from collision insurance. Collision insurance specifically covers damage to your vehicle resulting from a collision with another vehicle or object, such as a fence or a pole. While comprehensive coverage focuses on a broader range of incidents that don't involve collisions.
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Frequently asked questions
Comprehensive physical damage auto insurance covers damage to your vehicle that is not caused by a collision. This includes theft, fire, vandalism, and natural events like storms.
Collision insurance covers damage to your vehicle caused by colliding with another object, such as a vehicle, fence, or pole. Comprehensive insurance covers damage caused by other events, like theft, fire, or natural disasters.
If you have a car loan, your lender will likely require comprehensive physical damage insurance. If your car is fully paid off, comprehensive insurance is usually optional. However, it can provide valuable protection against unexpected costs.
Comprehensive physical damage insurance typically does not cover medical expenses, legal fees, lost income, stolen property, or damage to other vehicles involved in a collision.
The cost depends on factors such as the value of your vehicle, your location, and your driving record. Choosing a higher deductible can lower your monthly premium, but ensure you can afford the deductible amount in case of a claim.
