My Insurance Policy

We continue through some of the basics of insurance policy terms and definitions of automobile insurance.

This is a continuation of multi-part series will briefly explain some of the various coverages that can or may be included in anauto insurance policy.  This will bring additional understanding to the enigma that is automobile insurance.

Physical Damage Coverage

Physical damage coverages are usually optional on an automobile insurance policy (financing or leasing a vehicle ususally obligates the customer to carry these).  These coverages are those that will pay the claims damage to YOUR vehicle.  Today, we’ll go over the two most recognized.

–> Comprehensive

Comprehensive damage coverage covers damage to your vehicle for losses not involving collision (see below).  Damages or losses caused by falling or flying objects, most glass breakage (unless occurs during a collision), contact with a life animal, water or fire damage, vandalism to the vehicle, and total theft of the vehicle are the most common.  I summarize Comprehensive coverage as “damage caused by things you could not avoid.”

–> Collision

Collision damage coverage is the other side of the coin.  This would be damage sustained to your vehicle during the course of a collision with another object, and most often the accident was caused by you.  (Had it been cause by the other party, we hope they have insurance to cover your damages).  Damages or losses include contact with another vehicle, contact with a fence, house, pole, etc.  My summary suggests that Collision coverage is “damage caused by things you that you should try to avoid hitting.”  I say ’should try to avoid’ because that is the nature of an accident - you should have, but either didn’t or couldn’t avoid the incident.