The Car Damage section of our sample policy provides you with insurance to pay for damage to your vehicle, not the other guy’s, as a result of a collision with an object or another car, or as a result of something other than a collision (i.e., an overturn, vandalism, etc.). You do not have to buy this coverage; it is optional. It is usually sold with a deductible which you pay out of pocket before the insurance company kicks in). If the damage was caused by a collision, your collision deductible will apply. If it was caused by something other than a collision, (see definitions below), your comprehensive deductible will apply.
Below are definitions that are specific to this section only in addition to the definitions that apply to the entire policy Following the definitions are some explanations to help make them a bit clearer.
Additional Definitions Used in This Part Only
As used in this Part:
(1) “Collision” means collision of your insured car with another object or upset of your insured car. Loss caused by missiles, falling objects, fire, theft or larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief or vandalism, riot or civil commotion, colliding with a bird or animal, or breakage of glass is not deemed loss caused by collision. If breakage of glass results from a collision, however, you may elect to have it treated as a loss caused by collision.
(2) “Loss” means direct and accidental loss of or damage to your insured car, including its permanently attached equipment.
(3) “Your insured car” shall also include any other car or utility trailer not owned by or furnished or available for the regular use of you or a relative, while used by you or a relative, provided such use is with the permission of the owner.
(4) “Uninsured motor vehicle” means a motor vehicle which is not insured by a property damage liability bond or policy at the time of the accident. However, it does not mean:
(a) a hit-and-run vehicle whose operator or owner is unknown; or
(b) a vehicle owned by or furnished or available for regular use of you or a relative.
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Explanations
In definition (1) above, the policy says that collision refers to being hit, hitting another car or hitting an object (i.e., telephone pole, fence, a guardrail). It does not include damage from the other host of reasons mentioned. (Those are considered losses under comprehensive coverage.) If you do have a collision and there is broken glass, you may choose under which section of the policy you would like it to be handled--collision or comprehensive. Usually, if there is other damage, you will already be paying a collision deductible, so you would likely want to make it part of that claim and pay only one deductible. If, however, there is only broken glass, you would probably want to make it a comprehensive claim since comprehensive deductibles are typically lower than collision deductibles.
Definition (2) is fairly self-explanatory, but reference to permanently attached equipment could be subject to interpretation. If you have a spoiler on the back of your car, for example, and it was installed by someone other than the manufacturer or dealer, the insurer may not view it as permanently attached.
Definition (3) says that the car you are driving, as long as it’s with permission of the owner, does not have to belong to you or a relative to be considered your insured car for the purposes of the Car Damage section of the policy. If you borrow your friend’s car and have an accident, your collision coverage will pay for the damage, less your collision deductible.
Under Definition (4), a car that has no property damage liability insurance is an uninsured motor vehicle. A hit-and-run vehicle, however, is not an uninsured vehicle if you don’t know the identity of the owner or driver. Vehicle is hit and run, but even if know the identity of the driver, it does not necessarily mean that driver is insured. Additionally, your own vehicle or one you regularly use will also not be considered an uninsured vehicle.
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