What is physical damage coverage?

Physical damage coverage refers to the portion of an auto insurance policy that specifically provides financial protection against loss or damage to the insured vehicle itself. This includes damages resulting from collisions, whether with another vehicle or an object, as well as damages resulting from non-collision events such as theft, vandalism, or weather-related incidents (like hail or flood damage).

This type of coverage can typically be broken down into two main components: comprehensive coverage, which protects against non-collision related incidents, and collision coverage, which takes effect in the event of a crash involving the insured vehicle. By including physical damage coverage in an auto insurance policy, the insured is better protected from unforeseen expenses that can arise from damages to their own car, ensuring that repairs or replacements can be addressed without significant out-of-pocket costs. Other options provided in the question focus on different aspects of auto insurance, but do not pertain to the direct physical damage of the vehicle itself.