What Is a Physical Damage Coverage?

What Is a Physical Damage Coverage?

Are you planning to buy a car insurance? My first suggestion for you would be to have a sound idea of different types of insurance coverage before you start looking for insurance quotes. This article gives you an overview of the physical damage insurance coverage.

Physical damage coverage, as the name suggests, covers physical damage caused to your car. This can be of two types – comprehensive coverage and collision coverage.

Comprehensive coverage covers your vehicle from damages due to reasons other than collision. If your car is damaged due to rain, wind, earthquake, fire, animal etc. or if it is stolen, it can be covered by comprehensive coverage. Comprehensive insurance is generally optional. However, if you purchase your car with a car loan it may be mandatory.

Collision coverage covers the damages caused to your car when it is hit by other car and damages to another car when it is hit by your car. Like the comprehensive coverage, it is also not mandatory. But you may need it, if your car is on a loan or lease.

For both of these types, the amount you can claim depends on the deductible you set. The difference between the total expense and your deductible will be paid by your insurer. To keep your premium low you need to have a high deductible. So, you need to decide your deductible accordingly and purchase your insurance. People with a new and costly car mostly go for physical damage coverage. On the other hand, owner of an old car doesn’t show much interest in it.

Comprehensive and collision coverage are relatively expensive. Cost of insurance and related offers show a wide range of variation with different companies. For example, some companies may provide free damage repairs, free courtesy cars etc. to the customers purchasing comprehensive policies. So, you need to do a thorough comparison before you buy your insurance.