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Physical Damage Coverage
Collision and Comprehensive Coverages
“Collision” and “Comprehensive” coverages,
which are furthermore known as physical damage coverages, compensate
for repair or the real cash value of your auto in spite of who is
at fault.
Collision coverage pays if your auto collides with an object, including
another car, or if it overturns. Your own auto insurer will pay for
such damage even if the accident is your fault.
In addition to this, car collision premiums are based on the make
and model year of your car. You ought to assess the current market
value of your car and your capacity to afford a similar car should
it be destroyed before you purchase this coverage. You might not need
this coverage if your car has decreased in value or if you can afford
to replace it.
Comprehensive coverage pays for damage to your auto from more or less
all other causes such as water, fire, vandalism, hail, glass breakage,
wind, falling objects, civic commotion, or hitting an animal. It is
imperative to know that most policies cover hitting an animal under
comprehensive, not collision, insurance.
Comprehensive coverage also pays if your auto or parts of it, such
as a battery or tires, are stolen. Flood damage to your car is also
covered if your auto insurance policy includes comprehensive coverage.
If you carry collision without comprehensive coverage, you are not
covered for flood damage.
If you have a loan of money from a bank or some other monetary organization
to pay money for your car, the lender will probably require you to
purchase physical damage coverage to protect both of your interests
in the car.
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