In California, physical damage coverage in an auto insurance policy includes both collision and comprehensive coverage, which are optional but highly recommended for drivers who want protection for their own vehicle. Collision coverage helps pay for the repairs or replacement of a policyholder’s vehicle if it is damaged in an accident, regardless of who is at fault. For example, if the policyholder crashes into another car or a stationary object (such as a tree or a guardrail), collision coverage will help cover the cost of repairs or the total loss of the vehicle. The policyholder typically pays a deductible, and the insurance company will cover the remaining costs up to the actual cash value (ACV) of the car.
On the other hand, comprehensive coverage helps pay for damages to a vehicle that are not caused by a collision. This includes damage from incidents such as theft, vandalism, natural disasters (like wildfires or floods), falling objects, or hitting an animal. Comprehensive coverage is useful for protecting a vehicle from a wide range of non-collision-related risks. Like collision coverage, comprehensive coverage usually involves a deductible, and the insurance company pays for repairs, or the replacement of the car based on its actual cash value. Both types of coverage provide valuable protection for California drivers, particularly those with newer or more expensive vehicles, as they help mitigate the financial burden of repairing or replacing a car after an accident or damage.