Physical Damage Insurance

What Does Physical Damage Insurance Mean?

Physical damage insurance is a type of coverage that protects against physical damage to your property. It is commonly included in auto insurance policies, though it may need to be added to a standard auto policy.

This coverage can include damage from collisions, fire, water, falling objects, lightning, and wind. In an auto policy, physical damage protection is usually split into two parts: collision and comprehensive coverage, with collision paying for crashes and comprehensive paying for non-crash events like theft, weather, and animal strikes.

Insuranceopedia Explains Physical Damage Insurance

Physical damage insurance is crucial for many drivers, and many auto insurance policyholders choose to purchase it. Since automobiles are often exposed to various risks, such as sharing the road with other vehicles at high speeds, they face significant potential hazards. Additionally, cars are typically kept outdoors, making them vulnerable to weather-related damage and other risks. Together with liability, these coverages make up what insurers typically call full coverage car insurance. Whether it makes sense to keep physical damage protection often comes down to the car’s value, which is why some drivers eventually drop collision and comprehensive on older vehicles.