Personal Auto Policy: Physical Damage and Conditions
This domain covers physical damage to the insured auto and the conditions that apply after a loss. Expect the collision versus other-than-collision distinction, valuation, deductibles, exclusions, and claim duties.
Part C and Part D
- Part C collision pays for damage caused by collision with another object or overturn.
- Part D other-than-collision, often called comprehensive, pays for fire, theft, hail, vandalism, glass breakage, and animal strikes.
- Both are usually settled at actual cash value unless an endorsement provides replacement cost or agreed value.
- A separate deductible applies to each coverage; glass may have a separate or no deductible.
Exclusions and limitations
- Wear and tear, freezing, mechanical or electrical breakdown, and road damage to tires are excluded.
- Custom equipment, sound systems, and accessories may need a special limit or endorsement.
- Loss of use, towing, and rental reimbursement are additional coverages or endorsements, not automatic unlimited benefits.
- The insurer may take salvage and may subrogate against a negligent third party.
Conditions
The insured must give prompt notice, protect the vehicle from further damage, cooperate with the investigation, and allow appraisal if the amount is disputed. No benefit to bailee means the policy does not cover property in the insured's care for which the insured is responsible.
Worked example
Hail dents a hood and breaks a windshield. Hail is other-than-collision, so Part D responds, subject to the comprehensive deductible; glass may be treated separately. If the car instead hits a guardrail, Part C collision responds and the collision deductible applies. The insurer pays ACV, not the new-car price, unless replacement-cost endorsement applies.
Traps
Do not call hail a collision. Do not assume all custom equipment is fully covered. Do not forget the deductible and ACV limitation.