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 insurance with combined additional coverage (cac).
Collision insurance provides protection for your vehicle if it is damaged in an accident. collision insurance pays to repair or replace your vehicle if:
- collides with another object
- tips or rolls
- Collision insurance will provide protection in the event of a collision.
- Comprehensive insurance will provide protection against just about anything except a collision with another vehicle or object.
- fire and theft insurance with cac is a limited form of comprehensive insurance specially designed for specific types of heavy trucks.
Comprehensive insurance provides protection for your vehicle if it is damaged by something other than a collision with a vehicle or object, or if your vehicle is stolen.
fire and theft with cac provides protection similar to comprehensive insurance, except that your coverage is limited to certain specific non-collision incidents. fire and theft with cac does not cover windshield claims.
who needs physical damage coverage?
If you have a loan on your vehicle, or want to fully protect your vehicle, you should choose physical damage insurance.
If your vehicle is a rental, you may be 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 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 to choose a deductible that you can pay out of pocket at any time.
When you select physical damage insurance, you must also submit a set amount, which is your best estimate of the current value of your vehicle. the amount listed should take into account the age and condition of your vehicle, as well as any permanently attached equipment. Learn more about the amount listed and how to calculate it for your vehicle.
examples of physical damage coverage
example 1:
You are driving down the street when you hit a piece of ice. he loses control of his vehicle and crashes into a telephone pole.
Your collision insurance will pay for damage to your own vehicle because this was an accident where you collided with another object.
If you selected a $500 deductible, you would pay the first $500 to repair or replace your vehicle, depending on the extent of the damage, out of pocket. Your collision insurance would then pay the rest of the repair or replacement costs, up to the stated amount you submitted.
example 2:
You walk out of your house one morning and realize your van has been stolen.
because the loss was due to an incident other than an accident, comprehensive insurance or fire and theft insurance with cac would be used.
If you choose a $500 deductible, you would pay the first $500 out of pocket to replace your vehicle. your comprehensive or fire and theft insurance with cac insurance would pay the rest of the cost to replace your vehicle, up to the stated amount you sent.
exceptions and restrictions of physical damage coverage
if you wish to have collision insurance, you must also select comprehensive insurance or fire and theft insurance with cac.
in some states, progressive offers comprehensive insurance or fire and theft policies with cac insurance only for seasonal businesses.
learn more about seasonal business insurance.
physical damage insurance cannot be applied to trailers that are not owned, such as those used as part of a trailer trade-in agreement. insurance for these trailers can be purchased separately as part of trailer trade-in insurance.
