While Third Party Liability coverage on your vehicle is mandatory
by law, physical damage coverages are optional. The exception to this is if you
have borrowed money from a financial institution to buy your vehicle, as they
will usually require that you purchase physical damage coverage to protect
their interest. Physical damage coverage options include:
All
Perils
All Perils is the broadest form of physical damage coverage
available and provides protection from "all perils." All Perils is the only
coverage that will pay when theft of an automobile is caused by any person
residing in the same dwelling premises as the insured or by an employee engaged
in the operation, maintenance or repair of the vehicle.
Collision
Collision coverage provides coverage for your vehicle for
a loss caused by collision with another object or by upset. The usual collision
accident involves the vehicle striking or being struck by another vehicle but
Collision coverage also includes a single vehicle accident where the automobile
strikes a tree, a guard rail, post or any other object.
Comprehensive
Comprehensive coverage insures all other losses to
your vehicle, excluding only those caused by collision with another object or
upset. The usual things we think of with Comprehensive are fire, theft,
windstorm, hail and vandalism. While impact with animals is technically a
Collision loss, most insurers will generally settle such claims under
Comprehensive. This is advantageous as the deductible under Comprehensive is
usually less than collision, and comprehensive claims generally won't increase
future premiums.
Specified Perils
Specified Perils
restricts coverage to specific perils and includes fire, lightning, theft,
windstorm, earthquake, hail, explosion.
There will be exclusions applicable to all
of the above coverages. Be sure to review your policy to ensure that
you have the best coverages to suit your needs.
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