Physical Damage Coverage

Physical damage coverage on your insurance policy pays for damages to your own vehicle and belongings. When you are involved in an accident, be it your fault or not, this is the component of your insurance that will pay to repair your vehicle.

Physical damage coverage includes two parts:

• Comprehensive Coverage
• Collision Coverage

Essentially, physical damage coverage pays for any physical damage to your car. This could be from a collision, a fire or theft. It does not pay for medical expenses for you or other passengers or drivers.

Physical damage coverage is not required, but it is recommended. Without it, if your car gets stolen or damaged, you will bear the responsibility of paying to repair or replace your vehicle. If you are wealthy, this may not be difficult, but for the average American, shelling out several thousand dollars for a car repair or new car is not possible.

Ask your car insurance agent what the amount of physical damage coverage in the form of both comprehensive and collision coverage he recommends. It’s better to pay a little for the coverage now than to have to pay a larger sum should your car be damaged later on.