Physical Damage Insurance

Physical Damage Insurance covers damage or theft of the vehicle you own. If you cause an accident and there is extensive damage, you are responsible for fixing or replacing that vehicle. If the accident is determined to be the other party’s fault, most likely the other party’s insurance will cover the damage to your vehicle. However, insurance companies can take longer than you’d like to accept liability, send an inspector to examine the damage, and pay for the damages on your car. That’s why having Physical Damage coverage on your vehicle is so important.

When your livelihood depends on being able to drive a vehicle, you need it fixed quickly to avoid a long disruption in business and cash flow.

Physical Damage policies will pay to get your car fixed, regardless of who’s at fault for the accident. You can file a claim with your own carrier immediately instead of waiting for the other company to acknowledge the claim. Once the other party accepts liability, the insurance companies will settle with each other over what was paid.

Public auto insurance companies that insure Taxis, Limousines, NEMT, etc. don’t always offer this coverage as part of the Auto Liability package. Many public auto carriers do not offer physical damage coverage on their policy. They have found that public auto fleet owners would rather risk paying out of pocket than to pay for the insurance. This is a personal choice for any fleet owner, and this type of coverage is not required by law.

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When Should I Buy Physical Damage Insurance Coverage?

The age and condition of your vehicle are key factors that weigh heavily into the current value of your vehicle. All Physical Damage policies have a deductible (standard in the industry is $1,000). Once you factor in the cost of the premium, plus the deductible – you’re better off applying that money toward fixing the car on your own. Sometimes the best option is to replace it altogether if you’re paying more in deductibles & premium than what the car is actually worth. If you own newer vehicles that are financed through a lease or loan, the finance company will most likely require physical damage coverage.

There are a few factors to consider before purchasing collision insurance coverage:

  • How old is your vehicle?
  • How many miles are on your vehicle?
  • Are you financing, leasing, or do you own the vehicle outright?

Options, Options, Options

We consistently seek out and create our own insurance programs to ensure we can offer you coverage options that no other agency has. This is crucial when renewal time comes around. While most other agencies have one or maybe two niche markets, we have valued relationships with a plethora of carriers.

We know you’re busy running your business, and the last thing you have time for is shopping for insurance every year. That’s why we do the work for you. It’s also why we make it our top priority to keep multiple carrier options available at all times. When renewal time comes, we send your application out to every available company that’s writing NEMT/Paratransit insurance policies in your area. We promise to present you with the best option, every time. With us, we do the work. You do the saving.

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How Much Does Physical Damage Insurance Cost?

A common request we get are from customers who are asking for “full coverage.” Because we hear this often, we know what you mean – you want your policy to have Liability and Physical Damage Insurance coverage. You want as much coverage as possible. Public auto policies tend to be on the more expensive side because the cars are on the road more often, as are the drivers. As a result, it’s possible there will be more accidents.

Most insurance companies base physical damage premiums on the value of your vehicle, garage address and the quality of your drivers. This line of business is much easier to give a ballpark indication for than any other kind of insurance. Premiums tend to run about 5% to 12% of the vehicle value, plus taxes and fees if the insurance carrier is non-admitted.

Accidents drive up pricing no matter what insurance company you work with, as that is the bulk of their overhead. Because it is so common for public auto business owners to forego “full coverage” to keep their insurance costs down, proposals and policies very often leave this coverage off. As licensed agents, we are concerned primarily with balancing the best coverage with the best price. This ensures that we are offering you the coverage and pricing you expect. Check your policy now and see if “Physical Damage” or “Comprehensive & Collision” coverage are included on your declarations page. If not, we’ll do a free review of your physical damage insurance policy to research why that is, and if we can fill any gaps in coverage.

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Physical Damage insurance is available in almost every state aside from Hawaii. Here are some states we write collision coverage in: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

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