Physical Damage Coverage

Collision and Comprehensive Coverages

“Collision” and “Comprehensive” coverages, which are furthermore known as physical damage coverages, compensate for repair or the real cash value of your auto in spite of who is at fault.
Collision coverage pays if your auto collides with an object, including another car, or if it overturns. Your own auto insurer will pay for such damage even if the accident is your fault.

In addition to this, car collision premiums are based on the make and model year of your car. You ought to assess the current market value of your car and your capacity to afford a similar car should it be destroyed before you purchase this coverage. You might not need this coverage if your car has decreased in value or if you can afford to replace it.

Comprehensive coverage pays for damage to your auto from more or less all other causes such as water, fire, vandalism, hail, glass breakage, wind, falling objects, civic commotion, or hitting an animal. It is imperative to know that most policies cover hitting an animal under comprehensive, not collision, insurance.

Comprehensive coverage also pays if your auto or parts of it, such as a battery or tires, are stolen. Flood damage to your car is also covered if your auto insurance policy includes comprehensive coverage. If you carry collision without comprehensive coverage, you are not covered for flood damage.

If you have a loan of money from a bank or some other monetary organization to pay money for your car, the lender will probably require you to purchase physical damage coverage to protect both of your interests in the car.

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