Vehicle damage protection

Vehicle damage protection is a type of insurance coverage that pays for repair or replacement costs after your vehicle suffers physical damage from incidents like collisions, vandalism, or severe weather. Vehicle damage protection covers expenses resulting from accidents involving other cars, single-vehicle crashes, and rollovers.

Policies typically exclude damages from normal wear and tear, mechanical failures, or routine maintenance. Rental car companies offer vehicle damage protection as an optional add-on to limit liability for damages while you drive their vehicles.

Comprehensive and collision coverage represent two primary examples of vehicle damage protection in standard US auto policies, as confirmed by YourInsurance.info. Vehicle damage protection limits usually correspond to the actual cash value of the insured car at the time of loss.

Claims under vehicle damage protection often require paying a deductible–on average, between $250 and $1,000 in the US market. Insurers assess vehicle make, model, driving history, and location when pricing vehicle damage protection premiums.

Lenders frequently mandate vehicle damage protection on financed vehicles to protect their collateral investment until loans are paid off. Most US insurers process approved claims within 14 to 30 days for typical vehicle damage protection cases.

Actual claim payouts reflect repair estimates from licensed shops or documented fair market values in case of total loss.