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 your choice of full Comprehensive insurance or the more limited Fire and Theft with Combined Additional Coverage (CAC) insurance.
Collision insurance provides protection for your vehicle if it is damaged in an accident. Collision insurance pays to repair or replace your vehicle if it:
- Collides with another object Overturns or rolls
- Comprehensive insurance protects your vehicle if it’s damaged by something other than a collision with a vehicle or object or if your vehicle is stolen.
Fire and Theft with CAC provide similar protection to Comprehensive insurance, except its coverage is limited to certain specific, non-collision incidents. Fire and Theft with CAC do not cover windshield claims.
Who needs Physical Damage coverage?
If you have a loan on your vehicle, or if you want to fully protect your vehicle, you should choose Physical Damage insurance. This coverage has the following benefits:
Collision insurance will provide protection in case of a collision. Comprehensive insurance will provide protection against almost everything except a collision with another vehicle or object. Fire and Theft with CAC insurance is a limited form of Comprehensive insurance specially designed for specific heavy truck types.
If your vehicle is leased, you probably are required to have Physical Damage insurance. If your vehicle is fully paid for, Physical Damage coverage is optional.
Physical Damage coverage deductibles and other details
For Physical Damage insurance, you must choose a deductible. The deductible is the amount that you agree to pay out of pocket when you have a claim.
Choosing a higher deductible is an easy way to lower the price of your insurance. Be sure you choose a deductible that you can afford to pay at any time.
When you select Physical Damage insurance, you also are required to submit a stated amount, which is your best estimate of the current value of your vehicle. The stated amount should take the age and condition of your vehicle into account, as well as any permanently attached equipment.