Businesses and individuals alike not only benefit from having auto insurance, but it is also legally required. There is a minimum obligation when it comes to the law, but that alone leaves much to be desired. If you have a business which revolves around a lot of vehicle operation, such as a delivery or trucking company, there are various problems that could arise. Unfortunately, car accidents, vandalism, natural damage and more are all risks of having a vehicle, whether in use or even parked. While you may find yourself running into the names various types of insurances that all seem to cover the same thing, you’ll likely want to find physical damage coverage for the most protection for your vehicles.
What Physical Damage Policies Cover
Along with physical damage, you have likely seen the collision and comprehensive coverage. It’s important to understand what these individual policies cover, as all three are completely different types of coverage.
Collision: This type of policy is quite clear from its name, but it should be noted that it is completely limited to collisions only. While this is the type of coverage you would want if your driver causes an accident or runs into a stationary object (including rolling over onto the ground), this policy completely excludes any other type of damage. Vandalism, fire, flood, etc. are not considered to have “collided” with the car and, thus, are not included.
Comprehensive: Named as such due to its quality of being an addition to a collision policy, comprehensive policies cover most everything other than collisions. This is the type of coverage needed for outside damages, where the driver of the vehicle is not at fault for driving into something.
Physical Damage: While the first two both handle separate sets of damages, physical damage coverage is the all-encompassing policy which is able to give financial protection for nearly any case which involves damage to your vehicle. Source: ATM Insurance Services. Accidents happen both on and off the road, with both human error and natural disasters to blame. Physical damage coverage can give you the most support, guarding you against financial loss due to vehicular problems.