Physical damage coverage insures your vehicle against any conceivable type of damage that can happen to it; it does not cover everyday wear-and-tear or regular maintenance like oil and tire changes.

Typically physical damage coverage is optional unless you are leasing or financing a vehicle. That said, if you have a high-priced, classic/antique, or new car and you have the option, carrying physical damage coverage is highly recommended.

This type of coverage is typically paired with a deductible. It will be up to you when deciding how much a deductible to carry but it’s important to remember the lower it is, the higher your premium.

Physical Damage insurance can be purchased in addition to a liability-only insurance policy.

Physical Damage Coverage – Two Types

There are two main types of physical damage coverage available in an insurance policy:

• Collision insurance
• Comprehensive car insurance (sometimes referred to as “Comp” or “OTC”, Other Than Collision)

Both of the above are intended to cover any damage to YOUR vehicle. It’s important to recognize which of these types of coverage you have in your policy to better understand your coverage.

Each type only pays for specific causes of damage to your vehicle, and both can be purchased separately. Adding or removing either of these types of coverage could result in raising or lowering your insurance rates. As a general rule of thumb, the more coverage you have, the more your insurance costs.

Here is an example of each:

 “Collision Insurance”: Kenny has collision insurance on her new car. If Kenny backs her car into a cement pole in a gas station parking lot, his collision coverage will pay for the damage to his vehicle because his accident falls under the definition of “collision” in her insurance policy.

“Comprehensive Car Insurance”: Rayna’s car is stolen from the driveway of his home. The insurance company will pay for Rayna’s car to be replaced as a result of having comprehensive coverage in his insurance policy. In this example, the car was not damaged by way of a collision (running into an object, or rolling over as a result of loss of control while driving), so collision coverage alone wouldn’t be sufficient to replace Rayna’s car.

“Full coverage” is the term used to describe a personal auto policy that includes both physical damage coverage and liability coverage.

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Researchers found drivers of the City Safe-equipped XC60 had considerably better claims records than drivers of cars lacking the crash-avoidance feature

One automaker has found a high-tech way to help drivers steer clear of fender benders, according to new research by the Highway Loss Data Institute (HLDI), an affiliate of the Insurance Institute for Highway Safety.

A study released Tuesday found that drivers of Volvo XC60 midsize SUVs were significantly less likely than those behind the wheel of comparable vehicles to cause the kind of low-speed, rear-end crashes that have long plagued rush-hour motorists.

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A regional association blames MetLife for taking part in the deal, which includes a year of free coverage

A new sales promotion that provides a year of free MetLife auto insurance coverage to car buyers in the Pacific Northwest is unfairly taking business away from independent agents, according to a regional association that represents those professionals.

General Motors is offering the incentive to Washington and Oregon residents who buy new GM vehicles before Sept. 6. Policies provided by MetLife Auto & Home include both liability and physical damage coverage and exceed requirements in both states.

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After analyzing a set of crash data, researchers say grandparents may be a safer bet for driving children

Children may be far safer with Grandma or Grandpa driving than with their parents behind the wheel, according to a new study that is raising eyebrows nationwide.

Researchers at Children’s Hospital of Philadelphia found that kids’ odds of being hurt in an auto accident were reduced by as much as 50 percent when a grandparent was driving, rather than their mother or father.

The study—which analyzed insurance claims data from accidents involving nearly 12,000 child passengers under the age of 16 that occurred between 2003 and 2007—focused on injuries resulting from crashes rather than which age group crashed more often.

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In its newest publication of Consumer Reports, the Consumers Union (CU) makes a useful auto insurance coverage recommendation, advising motorists to sidestep the “insurance hard sell” by passing on purchasing coverage from rental car companies.

The CU says rental companies often try to sell customers on loss damage waivers that cost around $60 to $250 per week in order to limit damage liability. But, the CU points out, “You might not need the [loss damage waiver] if your own auto insurance policy includes collision and/or comprehensive coverage or if you use a credit card that provides protection.”

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The latest edition of the Consumer Price Index (CPI) report released Friday shows that the price of motor vehicle insurance coverage in the United States rose only one-fifth of one percent between March and April.

The price of all items rose at three times that rate during the same period, according to the Bureau of Labor Statistics (BLS).

The new CPI report also indicated that the price of a policy in April 2011 was 3.8 percent higher than the price of a policy in April 2010.

About the BLS’s Motor Vehicle Insurance Price Index

Every month, the BLS publishes an update of its CPI, which is meant to track and give data on the price changes of consumer goods in America over time. The CPI data referenced by Online Auto Insurance News are representative of changes in the cost of coverage for an estimated 87 percent of the U.S. population.

The BLS collects its policy-price data from a sample of insurers from each of the 87 pricing areas used in the CPI. Prices of coverage are ascertained by looking at a sample of 768 individual private passenger policies or quotes. The CPI actually tracks the prices of these policies over time. Price changes reflect fluctuations in insurers’ premium-calculation formulas, as well as increases in state-mandated minimums for coverage.

Even during times of increases, consumers can maintain their access to cheap car insurance rates by adjusting things like deductibles, applying for new discounts or looking for new carriers, among other methods.

According to the BLS, “The major types of coverage included are collision, comprehensive, bodily injury liability, property damage liability, medical payments, uninsured motorist and personal injury protection.”

New BLS numbers show increases in the cost of all items are outpacing increases in the cost of coverage

New statistics released Friday by the U.S. Bureau of Labor Statistics (BLS) indicate that the price of insuring a motor vehicle rose only 0.1 percent between February and March.

The posted increase in the cost of car insurance was far outpaced by an increase in the price of all items tracked in the BLS’s Consumer Price Index (CPI), as has been the trend in 2011.

According to data included in the first three CPI reports this year, the cost of motor vehicle coverage has risen 0.47 percent since 2010. Meanwhile, the overall cost of all items tracked by the BLS has risen 1.5 percent.

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The Insurance Institute for Highway Safety (IIHS) has devoted the entire issue of its latest Status Report newsletter to getting across one point: red light cameras save lives.

The IIHS mixes in statistics with the real-life stories of seven people who were killed by red light runners in an attempt to steer the discussion away from the topics of privacy issues and money-grab allegations and “back to the real victims.”

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<h2>Progressive Car Insurance Discounts</h2>

Progressive Car insurance company’s Snapshot discount program has reached the shores of Vermont & Montana. Drivers in the 2 states are the latest to become eligible to participate in Progressive car insurance’s SnapShot discount program, which allows motorists to save if they have demonstrably safer driving habits.

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