Part III: A Guide to the Optional Physical Damage Coverage on Your Auto Policy

October 26, 2011 at 9:10 AM | Posted in Auto, Insurance Policy, Personal Insurance | Leave a comment
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Optional physical damage covers your vehicle, towing and labor, and car rental. The value of your vehicle and your particular needs determines what physical damage coverage options you should carry.


Part 7:   Collision.
  Pays for damage to your car, less any applicable deductible, no matter who causes the accident. The standard deductible is $500 but other options are available. Collision is always paid on an actual cash value basis at the time of the loss. Other than the value of the vehicle, collision also covers:

  • The initial tow from the scene of an accident if the vehicle is not drivable
  • Storage fees
  • Cleanup of debris or hazardous materials resulting from an accident
  • Unusual circumstances such as winching a vehicle out of a ditch.

Part 8:   Limited Collision.  Also pays for collision damage to your car. You must not be more than 50% at fault and the owner of the other vehicle must be identified. This coverage would not apply in hit and runs or at-fault accidents.

Part 9:   Comprehensive.  Pays for damage to or loss of your car, less the deductible resulting from perils such as fire, theft, vandalism, and striking an animal but not collision. This coverage is also paid on an actual cash value basis. Glass is usually covered with no deductible.

Part 10:   Substitute Transportation.  Reimburses up to $15 a day for rental or transportation costs (up to $450) while your car is undergoing collision or covered repairs. Higher options are available. The number of days allowed to rent will be pre-determined by the amount of damage to your vehicle, and must be approved by your insurance company.

Part 11:   Towing and Labor.  Reimburses you up to $50 for towing and labor charges each time your car breaks down whether or not there is an accident involved. Higher options are available. Some companies now offer Roadside Assistance instead of the standard towing and labor coverage, which works like a motor club membership – they send someone to assist you instead of just reimbursing your expenses.

Remember, only you can determine which coverages you should carry to protect yourself based on your financial situation. Contact us at 888.850.9400 for additional information on what coverage options are available to you.

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