Coverage D: Auto Physical Damage

Coverage D is also known as collision and/or comprehensive. Collision covers damages up to the actual cash value of the vehicle if you are hit by another vehicle. Comprehensive covers all risks (other than collision), including fire and theft.

Auto physical damage policies, whether for personal or business vehicles, can cover collision damage as well as assorted perils from fire, wind, hail, vandalism, and malicious mischief, as long as you take out a "comprehensive" or extended coverage policy. Collision insurance can be carried with a higher deductible, thus reducing premium costs significantly.