Auto Insurance: WHAT are the coverage PART D - PHYSICAL DAMAGE

WHO is covered and WHERE does coverage apply?

* Named Insureds *Resident Family Members but not Passengers or Pedestrians WHO is covered? Part D: Physical Damage covers Named Insureds and Resident Family Members but not passengers or pedestrians. WHERE does coverage apply? This coverage applies in the United States, all U.S. Territories and U.S. Possessions, and Canada. Physical Damage coverage does NOT apply in Mexico.

HOW are limits applied?

*Actual cash value *Non-Owned Trailer = max $1,500 *Electronic equipment permanently installed in different location = max $1,000 *Deductible applies per occurrence When your car is damaged in an accident, an insurance company considers the following items when determining how much to pay for repairs or replacement: • Physical damage losses are reimbursed for actual cash value or the amount needed to repair or replace the property, whichever is less, minus your deductible. • The most the policy will pay for a non-owned trailer is $1,500. • Electronic equipment (i.e. audio, video) permanently installed in the car in a different location not normally used by the auto manufacturer for this equipment is limited to $1,000. • Collision and Other than collision coverage are usually written with a deductible that applies separately to each occurrence.

Non-owned auto vs. Covered auto

Definitions As we learned earlier, physical damage coverage pays for direct and accidental loss to the named insured's covered auto or a non-owned auto against loss caused by collision or other than collision. 1. Your covered auto means any vehicle shown in the Declarations, a newly acquired auto, and any trailer you own. 2. A non-owned auto is any private passenger auto, pickup truck, trailer, or van not owned by or available for regular use of the named insured or family member. An example of this is a short-term rental car.

Transportation Expenses

In addition to collision and comprehensive coverage, Part D also provides coverage for Transportation Expenses. Transportation Expenses • Covers transportation expenses due to physical damage loss to covered auto • Covers loss of use expenses due to loss to a non-owned auto • Pays $20 per day/$600 max • 48 hour waiting period for total theft of auto • 24 hour waiting period after other losses

WHAT are the coverage benefits?

Part D - Physical Damage Coverage Part D of the Personal Auto Policy covers for damage to your own vehicle, it is commonly known as physical damage coverage. Physical Damage coverage: • Pays for direct and accidental loss to the named insured's covered vehicle against two types of losses: ○ Collision; or, ○ 'Other than Collision', also known as Comprehensive. • Does not cover personal property in the vehicle such as laptops, cell phones, golf clubs, etc. Collision is defined as upset or impact to your vehicle or another vehicle or object. Note that: • When it comes to vehicles you own, you must list them on the policy and purchase the individual physical damage coverages for them to apply. • If you own a car but choose not to add it to your policy you will not have physical damage coverage. • If you add a vehicle but choose to purchase only 'Other than Collision' coverage, you will not be provided 'Collision' coverage on that car. Other Than Collision (Comprehensive) Perils Comprehensive coverage is an 'all risk' type coverage in that it provides coverage for what is NOT covered by Collision as long as it's not excluded. Here are some typical 'Other than Collision' losses. • Missiles or Falling Objects • Fire • Theft or larceny • Explosion or earthquake • Windstorm • Hail, water, flood, Mischief or vandalism • Riot or civil commotion • Contact with animal • Breakage of glass Some examples of excluded perils for Other than Collision include freezing, mechanical or electrical breakdown, and road damage to tires.

Newly Acquired Vehicle Rules

Physical Damage Coverage (Comp/Collision) 1. If another vehicle on the auto policy has physical damage coverage: a. Coverage begins the day car is acquired as long as insured requests coverage within 14 days of acquiring the auto. b. The new auto will have the broadest coverage provided for any vehicle already listed on the policy. 2. If no vehicles on the auto policy with physical damage: a. Coverage must be requested within 4 days after acquiring the auto. b. If a loss occurs in the time before coverage is requested, a $500 deductible applies.