Physical damage insurance

Physical damage insurance covers repairs or replacement of insured vehicles after collision, theft, vandalism, or weather incidents. Auto insurers such as State Farm and GEICO offer physical damage coverage as part of their comprehensive and collision policies.

The two main types are comprehensive (protects against non-collision perils like hail, fire, or animal strikes) and collision (covers accident-related damage). Lienholders, including banks and credit unions, typically require physical damage insurance on financed vehicles.

Premium costs depend on vehicle value, claim history, deductible amount, and location–example: average annual premiums in 2023 ranged from $300 to $800 for comprehensive and $400 to $1,000 for collision (source: NAIC). This insurance excludes normal wear, mechanical breakdowns, or personal items inside the car.

Physical damage policies usually carry deductibles–common amounts include $500 or $1,000–paid before insurer compensation begins. Commercial truck operators often buy physical damage insurance to protect against loss or damage to fleet vehicles due to accidents or theft.

Most U.S. States do not mandate physical damage insurance for private autos but require it for leased/financed vehicles, as per Your Insurance Info.

Claims for physical damage should be reported immediately with documentation such as police reports or photos as proof of loss.