Physical damage insurance is a type of insurance policy that provides coverage for damages to your vehicle caused by accidents, theft, fire, natural disasters, and other incidents. It is usually offered as part of comprehensive auto insurance policy.
Example:
• If your car is damaged in an accident, physical damage insurance would cover the cost of repairs or replacement. Similarly, if your car is stolen or damaged in a natural disaster such as a flood, physical damage insurance would cover the cost of repairs or replacement.