Part 4: Comprehensive Physical Damage Coverage
Sometimes referred to as collision coverage, comprehensive physical damage coverage is coverage that pays for damages from any collision, regardless of who is at fault. If the other driver is at fault and has liability coverage, your insurance company should be able to recover losses from the other driver’s insurance company. If the accident does not involve a collision with another vehicle, comprehensive physical damage coverage covers any physical damage to your car. (note: this coverage is for your car and not personal physical injuries.)
One of the easiest and quickest ways to reduce your premium is to not have comprehensive coverage. This is an optional coverage that is not required by law. However, it is also one of the best ways to protect yourself from any serious damage to your car (your fault or not).
One of the best ways to decided whether or not comprehensive coverage is right for you is to see how much your car would cost to replace or repair. A quick search on Kelly Blue Book or N.A.D.A. will give you a current value for your car. If your car value drops below $2,000 it might not be worth the extra money to carry collision coverage; it may be more cost-effective for you to pay repair costs out of your own pocket if the car is in a collision.
Automobile Insurance Explained
Part 1: Liability coverage
Part 2: Medical payment
Part 3: Uninsured/underinsured motorist coverage
Part 4: Comprehensive physical damage coverage (see above)
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