Automobile Insurance

12 Physical Damage Coverages (comprehensive and Collision) • Collision covers damage to your car caused by physical contact with another vehicle or an object, such as a, tree, rock, guardrail, or building. • Comprehensive covers damage to your car caused by something other than a collision. For example, comprehensive can cover damage from fire, theft, vandalism, windstorm, flood, falling objects, etc. It does not cover mechanical breakdown, normal wear and tear, or maintenance. Collision and Comprehensive coverage provide compensation based on the market value of your car. Endorsements • You can buy insurance for extra equipment, such as custom wheels, navigation systems, and custom equipment that is permanently installed. • You can buy insurance for towing and road service. • You can buy rental reimbursement insurance for renting a car when your car is being repaired after a covered accident. • You can purchase insurance to cover business use of the vehicle including when driving for a Transportation Network Company. If you have a car loan: If you have a loan, you usually need to insure your car. If you do not buy insurance, the loan company may buy it and charge you. It usually costs less if you get your own Collision and Comprehensive coverage. Auto insurance does not pay off your loan if your car is damaged and its market value is less than what you owe. Auto dealers and lenders may offer Guaranteed Auto Protection (GAP) insurance for this purpose.