What Is Own Damage In Car Insurance?

Car insurance is an important purchase for anyone who owns or leases a vehicle. It offers protection against accidents and other types of damage that can occur during the course of using your car. One type of insurance coverage that you may have purchased is called own damage coverage, and it is important to understand what it is and how it can help you.

What Is Own Damage Insurance?

Own damage insurance, also known as comprehensive coverage, is a type of car insurance that covers damage to your vehicle that is caused by something other than a collision. This includes events such as theft, vandalism, fire, hail, and flooding. It also covers damage to your car from hitting an animal, and even from hitting a stationary object such as a tree or a pole. In some cases, it can even cover damage from falling objects, such as a branch from a tree.

Own damage insurance is not required by law, but is highly recommended. It provides you with additional protection for your vehicle, and can be especially important if you have a newer car. If you have an older car, you may be able to save money by not getting own damage coverage, but it is still important to understand what you are and are not covered for.

How Does Own Damage Insurance Work?

Own damage insurance works by paying out a specific dollar amount to cover the cost of repairs or replacement of your vehicle. The amount of coverage you need will depend on the value of your vehicle, and the type of coverage you choose. You can usually choose between a stated value policy, which pays a specific amount regardless of the actual value of the car, or an agreed value policy, which pays out an amount based on the current value of the car.

When you purchase own damage insurance, you will need to pay a deductible, which is a set amount of money that you have to pay before your insurance company will cover the remaining costs. The amount of your deductible will depend on the type of coverage you choose, as well as the value of your vehicle. It is important to read the details of your policy to make sure you understand what is and is not covered.

What Are the Benefits of Own Damage Insurance?

The main benefit of own damage insurance is that it offers additional protection for your vehicle. It can help to reduce the financial burden associated with repairing or replacing your car if it is damaged due to theft, vandalism, or an accident. It can also help to reduce the stress associated with unexpected car repairs, as you know that you are covered should something happen to your car.

Own damage insurance can also help to lower the cost of your car insurance premiums. Since you are taking on more of the risk of damage yourself, your insurance company may be willing to offer you a lower premium. It is important to shop around and compare different insurance policies to find the one that best meets your needs.

Conclusion

Own damage insurance is a type of car insurance that can offer additional protection for your vehicle. It can help to reduce the financial burden associated with repairing or replacing your car if it is damaged, and it can also help to lower your car insurance premiums. It is important to understand what own damage insurance covers and does not cover, and to shop around for the best policy for your needs.