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Ieuter Insurance Group Blog

All You Ever Wanted to Know About Insurance

What is Physical Damage Coverage?

What is physical damage and why is it important? Physical damage provides coverage for your vehicle due to a loss such as accidents, collisions, fire, theft or vandalism. There are two types:

1. Comprehensive physical damage- stolen or damaged by flood, fire or animals

2. Collision physical damage - overturns or collisions with another object

 Who needs physical damage coverage? If you have a loan or lease on your vehicle you must have physical damage, if your vehicle is fully paid, physical damage is optional.

 What deductibles to choose? Which ever deductible you choose will be what you are willing to pay out of pocket when an incident occurs. Most loans will have a maximum deductible option.

 Physical damage will provide you coverage if you are involved in a claim.  Instead of paying out the full amount of damage, you would only have to pay your deductible. The insurance company will take care of the rest up to the limits of the policy.