Property or Physical damage is auto insurance coverage that insures against damage to the insured’s own vehicle. The most common types are collision coverage and comprehensive coverage. These two coverages are optional to purchase.
Most States law says you must show proof that you can pay for accidents that you cause. Most people do this by buying auto liability insurance. Liability insurance pays for the other driver’s repairs and medical bills. If you still owe money on your car, your lender will require you to have collision and comprehensive coverage to pay for damage to your car.
An auto insurance policy is a contract between you and an insurance company. You agree to pay the cost of the insurance policy, called a premium, and to obey the insurance company’s stated rules. In return, the insurance company agrees to pay for certain expenses associated with an accident or other covered losses.
Collision Car ınsurance Covers
Collision coverage pays for physical damage to your car as the result of your auto colliding with an object, such as a tree or another car. Sometimes the cost of repairing the car can quickly exceed a threshold of the car’s actual cash value. For example, an accident involving an older car or any vehicle sustaining extensive damage. In this case, insurers will “total” the car and pay you the actual cash value of the car, minus the deductible, rather than repairing it. As indicated by Motor Vehicles Law, this threshold is 75% of the vehicle’s actual cash value.
If the accident was the other driver’s fault, their insurance should pay for your repairs. If the company refuses to pay because it doesn’t agree that its driver was at fault, you can file a claim with your own company. But you must have collision coverage – not just liability – to do this. Your company will probably try to get the other company to pay your claim. If the other company agrees to pay, you’ll probably get back the amount of your deductible.
Comprehensive Car ınsurance Covers
Comprehensive coverage pays for damage to your auto from most other causes. Including fire, vandalism, flooding, theft, falling objects, and collision with animals. Comprehensive coverage will also cover broken glass, such as damage to a windshield. Click for detail see what does comprehensive insurance cover?