Coverage for Damage to Your Auto “Collision” and “Other Than Collision” coverages, which are also known as physical damage coverages, pay for repair or replacement of your auto regardless of who is at fault. Collision coverage pays if your auto collides with most objects, including another car, or if it overturns. Comprehensive coverage pays for damage to your auto from almost all other causes such as fire, vandalism, water, hail, glass breakage, wind, and falling objects. It will pay even if your pet chews the upholstery. Comprehensive coverage also pays if your auto or parts of the auto, such as the battery or tires, are stolen. Typically, you will need Coverage for Damage to Your Auto if you borrow the money to buy your car from a bank or some other financial institution.
If you own an automobile which is insured for Other Than Collision and Collision coverages, your policy will extend those coverages to an automobile that you rent (on vacation, for example). If you rent a vehicle from a rental agency, you should read the rental agreement carefully before deciding whether to purchase the loss damage waiver or physical damage protection they offer. Your automobile insurance may not provide coverage for all your obligations under the rental agreement.