Physical damage is a general term for a group of insurance coverages that protect your vehicle. This general term includes collision insurance, as well as the comprehensive insurance you choose or the more limited insurance against fire and theft with combined additional coverage (CAC). Physical damage coverage insures your vehicles against a variety of damages, such as collisions, vandalism, fires and thefts. Lenders often require this type of auto insurance for leases and loans.
Physical damage insurance refers to a series of insurance coverages designed to protect a vehicle. Generally speaking, physical damage includes both collision coverage and comprehensive coverage. The above insurance covers damage to your vehicle resulting from accidents, including rollovers and collisions with other objects. Liability insurance only covers property damage and bodily injuries to the other car and the driver if you cause an accident.
It doesn't cover damage to your car or the injuries of anyone in your car. Full-coverage auto insurance is a personal auto policy that includes both physical damage coverage and liability coverage. As the name suggests, you're fully covered for damage to your car and others. The Insurance Information Institute states that, in most cases, you can't get a vehicle without physical damage coverage if you borrow the money to buy a car (lease or loan).
Contact the experts at Pro Insurance Group to learn more about physical damage insurance coverage for your vehicle. In this example, the car was not damaged by a collision (it hit an object or flipped over as a result of losing control while driving), so collision coverage alone would not be sufficient to replace Colin's car. For example, if you do business in an area prone to theft and vandalism, but are unlikely to suffer damage from fire or hail, you can insure your vehicles against theft and vandalism specifically to reduce insurance premiums, rather than a comprehensive policy that covers a multitude of risks. The company that lent you the money for the car is listed in your policy as the beneficiary of losses, which means that if the car suffers irreparable damage, your insurance company will pay the lender the remaining balance of the vehicle loan, so you will not be responsible for it.
This information may be different from what you see when you visit the website of an insurance provider, insurance agency, or insurance company. The insurance company will pay for the replacement of Colin's car as a result of having comprehensive coverage in their insurance policy. The mission of The Truth About Insurance is to provide unbiased and objective insurance advice and advice to consumers on a variety of topics, ranging from car insurance coverage to health care and more. Even if your car is fully paid for, it's a good idea to get collision and full-risk coverage if you want to make sure that your car will be repaired or replaced if it's damaged or stolen (assuming you can afford it).
Combined physical damage insurance is a type of car insurance policy that reimburses policyholders for damage to their own vehicle as a result of a collision or other causes, basically combining collision coverage and the integral parts of a conventional car insurance policy. Lenders, landlords, and creditors often require physical damage insurance for financed and leased cars to protect their interests in the event of theft or damage to the car.