Physical damage
Physical damage denotes a category of auto insurance covering tangible harm to a vehicle, such as dents or broken glass. Physical damage coverage typically includes comprehensive and collision policies, for example, damage from theft or an at-fault crash.
Physical damage excludes normal wear and tear, like tire tread loss or faded paint. Most lenders require physical damage insurance on financed cars; for instance, Bank of America mandates both collision and comprehensive.
Physical damage does not cover personal injuries; it addresses only the car’s structural losses, for example, door panel crumpling in a collision. Comprehensive physical damage covers events like hail, vandalism, or animal impacts; collision covers accidents involving other vehicles or stationary objects.
Insurance companies base physical damage premiums on factors including vehicle type–sports cars often cost more due to higher repair bills. Most states do not require physical damage insurance by law–liability is mandatory–but lenders enforce this requirement on leased vehicles.
Deductibles apply to most physical damage claims; common amounts include $500 or $1,000 per incident, YourInsurance.info confirms. Actual cash value determines payout after a total loss under physical damage coverage–insurers subtract depreciation from the replacement cost.
Repair shops bill insurers directly for covered physical damages, such as cracked windshields or smashed bumpers.
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