Physical Damage Insurance Coverage Florida

What Is Physical Damage Insurance?

Physical damage insurance, also called comprehensive and collision coverage, protects your vehicle from physical damage regardless of who is at fault. This coverage pays to repair or replace your car, truck, motorcycle, or other vehicle when it is damaged in an accident, by weather, through theft, or from other covered causes. While Florida law does not require physical damage coverage, it is essential for protecting your investment, especially if you financed or leased your vehicle.

Why You Need Physical Damage Insurance

• Protects your financial investment in your vehicle, which for many people is one of their most valuable assets
• Required by lenders and leasing companies if you financed your vehicle
• Covers damage from accidents you cause, where liability insurance only covers the other party
• Protects against theft, vandalism, and weather damage common in Florida, including hurricanes and flooding
• Provides peace of mind knowing you can repair or replace your vehicle after a covered loss

Common Coverages

Physical damage insurance consists of two main types of coverage. Collision coverage pays for damage to your vehicle resulting from colliding with another vehicle or object, or from your vehicle rolling over, regardless of who caused the accident. Comprehensive coverage, sometimes called other than collision, covers damage from events other than collisions, including theft, vandalism, fire, falling objects, glass breakage, hitting an animal, and weather-related damage such as hail, wind, or flood. Both coverages are subject to a deductible, which is the amount you pay out of pocket before insurance covers the rest. You can typically choose deductibles ranging from a few hundred to a couple thousand, with higher deductibles resulting in lower premiums.

Do I Need Both Comprehensive and Collision?

While you can purchase comprehensive and collision separately, most people benefit from carrying both coverages. Collision covers accident scenarios, while comprehensive covers almost everything else. Together, they provide complete physical damage protection for your vehicle. If your vehicle is financed or leased, your lender will require both. If you own your vehicle outright, you can choose to carry one, both, or neither, though The Gordon Agency generally recommends maintaining both for complete protection.

How Does the Insurance Company Determine My Vehicle's Value?

If your vehicle is totaled, meaning the cost to repair it exceeds its actual cash value, the insurance company will pay you the vehicle's actual cash value at the time of loss. This is typically based on the current market value for your vehicle's make, model, year, and condition, minus your deductible. Factors considered include mileage, condition, local market prices, and any added features or modifications. You can often add gap insurance to cover the difference between your vehicle's value and what you still owe if you financed it.

What Is Not Covered?

Physical damage coverage has certain exclusions. Normal wear and tear, mechanical breakdowns, and maintenance issues are not covered. Damage from driving under the influence or intentional acts is excluded. If you use your personal vehicle for business purposes like delivery driving, damage during those activities may not be covered without additional commercial coverage. Custom equipment and modifications may need to be specifically scheduled to be fully covered. The Gordon Agency can review these exclusions with you and help you understand exactly what protection your policy provides.