Property, Casualty and Liability Insurance - Physical Damage Under Automobile Insurance

4) Part D- Physical Damage
Coverage Physical damage coverage is protection for damage to your automobile. It is an open-perils coverage that is implemented through two separate agreements known as comprehensive and collision.

A) Comprehensive Coverage
This coverage is commonly known as "Other than Collision", because it covers all other perils not associated with collision coverage. Policies will designate several perils as "not considered collision" such as:

  • Earthquake
  • Windstorm/hail
  • Theft & Broken Glass
  • Fire
  • Contact with bird or animal
  • Vandalism/riot
  • Falling objects
  • Flood

B) Collision Coverage
Collision is the upset of your covered auto or its impact with another vehicle or object. Coverage examples for the insured's auto include:

1) Hitting another automobile
2) Hitting a fence, telephone pole, tree, or building
3) Auto damage while parked in a parking lot
4) Door damage by opening into another vehicle

Sample Policy for Part D could look like:
Physical Damage Coverage
Comprehensive Loss Actual Cash Value less $500 Deductible*
Collision Loss Actual Cash Value less $500 Deductible*

* In these examples, the policy would pay actual cash value- which means the amount that it would cost, at the time of loss, to buy a comparable vehicle (one of the same make, model, year, body type, similar mileage & physical condition) less any deductible amount payable by the insured as listed on the policy in Part D.

Factors that Determine Automobile Premiums:
Driving Record Marital status
Age and Sex of Driver Geographical Location
Number and Type of Automobiles Driver Education
Good Student/Driver Discounts Use of Automobile
Umbrella Liability Insurance


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