Does Car Insurance Cover Body Damage | Every Details by Expert

Many people ask does car insurance cover body damage. By law, all drivers must have a minimum third-party car insurance policy that excludes the owner’s vehicle and covers body damage. This is insufficient when physical damage to the vehicle occurs. Therefore, you should take out physical damage car insurance to obtain more outstanding financial assistance in the event of damage to the car.

Insurance can be a great way to help cover the cost of repairs after an accident or other covered catastrophe. However, repairs due to ordinary wear and tear or mechanical breakdown are not usually covered. Let’s discuss this deeper:

What Is Physical Damage Coverage in Car Insurance?

Does Car Insurance Cover Body Damage

Physical damage insurance; is a term that refers to an automobile insurance policy that covers damage to the insured vehicle. Thus, it provides financial assistance to the policyholder in the event of such damage.

It is more comprehensive auto insurance than the standard third-party coverage, which only covers you if your insured vehicle causes harm to another person or their property.

In contrast, physical damage coverage covers the insured vehicle and optional coverage’s such as zero depreciation, roadside assistance, and return of invoice coverage. It also protects the insured vehicle against various events, such as natural disasters, vandalism, theft, and fire.

What is covered under Physical Damage Cover?

Physical damage insurance policies cover situations where the insured can make a claim. They are also called “inclusions” in an automobile insurance policy.

  • A physical damage policy includes the following coverage’s:
  • Theft.
  • Natural catastrophes such as earthquakes, floods, hailstorms, and cyclones.
  • Damage caused by artificial calamities includes riots, vandalism, and strikes.
  • Accidental damage.
  • Fire damage: Physical damage to the insured vehicle caused by fire, explosion, self-ignition, or other causes is covered.
  • Animal attack.
  • The insurance covers damage occurring during vehicle transportation by rail, air, road, or elevator.
  • Consequences of a terrorist attack.

Bodily Injury Car Insurance Coverage: How Does It Work?

Bodily Injury Car Insurance Coverage: How Does It Work

If you stand liable for an automobile accident in which another person gets injuries, your Bodily Injury Insurance covers the costs of your injuries. 

Almost all states have a minimum bodily injury policy requirement, typically $24,000 for each person, to prove your financial liability while driving. However, consumers can purchase additional coverage above the required minimum.

What does bodily injury policy pay for?

Bodily injury liability coverage handles injuries you inflict on another driver. It covers medical expenses and lost earnings, and, if necessary, burial expenses.

The insured person’s medical bills resulting from an accident are not covered by his or her bodily injury liability insurance. The term “third-party” coverage only covers damages to other motorists and their passengers.

What does bodily injury insurance cover?

What is covered under bodily injury coverage

 Some of the charges that a third party may request payment for under your physical harm liability coverage entails:

  • Hospital treatment, follow-up treatment, and associated health-related treatment of the other party are
  • Lost income: Your liability coverage for bodily injury pays you for lost earnings if the injured person cannot work due to their injuries. This sum is decided by the period you have failed to work due to your accident, and it is subject to different limits depending on your location.
  • Legal Dues: This is the only instance a personal injury lawsuit rewards you for your expenditures rather than a third party. If you are accused by somebody else, your carrier will, in most cases, fund legal representation as part of your injury insurance.

How to Comprehend Liability Limitations for Bodily Injury

The three-digit notation for bodily injury insurance, such as “25/50/25,” is used in part. The initial two figures support physical injury insurance limits, whereas the third number indicates the property damage coverage limit, which is different insurance.

The first figure reflects the quantity of insurance for a single individual in an incident, and the preceding digit represents the overall coverage for the disaster. So, suppose you acquire a 25/50 bodily injury limit. In that case, the insurance plan will contribute up to $22,000 for each person wounded in an incident and $52,000 in damages for one accident.

To demonstrate how bodily harm responsibility works, we’ll look at two scenarios.

  • You were determined to be at fault in a collision that wounded two persons in the other car. Medical expenditures for individual A were $30,000, whereas medical expenses for person B totaled $10,000. Your motor insurance package will only reimburse person A for $24,000 and B for $10,000, even though the total medical bills are less than the $50,000 maximum per accident. Because Person A’s costs exceed the individual limit, you are accountable for the $4,000 claim that was not paid.
  • You have been at fault in a car accident that claimed the lives of two persons. Medical expenditures totaled $25,000 for each of them. The insurance policy will cover these costs because the joint complaint is below or equitable to $50,000 and both particular claims are less than or equitable to $25,000.

Exclusions: What is Not Covered Under Physical Damage Cover? 

Exclusions are scenarios that an insurance policy does not cover. The policyholder is not eligible to claim under the physical damage car insurance policy during this period. The following is a list:

When a driver is intoxicated, damage occurs.

  • Damage due to negligence.
  • Consequential loss, i.e., injuries that occur when attempting to operate a damaged vehicle.
  • When you use a car illegally or criminally, injury occurs.
  • Without proper documentation, the vehicle may suffer electrical or mechanical damage.
  • Constant deterioration.
  • Damage arising outside the geographical limits of the country.
  • Unless insured by the zero depreciation supplement, the vehicle suffers depreciation.
  • The injury occurred when you used the car for a purpose other than its design.
  • Damage caused by a conflict situation.

Types of physical damage coverage

Types of physical damage coverage

A physical damage policy can take various forms depending on the level of coverage it provides. A physical damage policy can be classified as follows.

Comprehensive cover

This is perhaps the most comprehensive coverage the auto insurance covers. This type of physical damage insurance covers injury or property damage to third parties, as well as your damage to the insured car, for a variety of reasons. It also offers the option of acquiring beneficial add-ons such as the following:

  • No depreciation
  • Roadside assistance
  • Engine safety
  • NCB Safeguards Accessories
  • Return of invoice

Collision Cover

A collision policy provides financial protection against damage caused by accident, precisely a collision. Here are some examples:

  • An automobile that loses control and collides with the property.
  • During an accident, a car collides with another vehicle.
  • Collision with an animal
  • Collision with a tree or a wall, etc.

What is the average value of a bodily liability claim?

Compared to asset damage requests, which recently soared to about $3,600 over the previous decade, bodily injury cases are more expensive.

The median bodily injury amount in 2019 was $18,400, as per the Insurance Service Section. On the other hand, Bodily harm claims are exceedingly rare, with just 1.1 percent of insurance reporting one that year. According to this data, with a few exceptions, including Florida, many bodily injury complaints fall underneath the government basic insurance levels.

Five factors that affect the cost to repair car body damage

While estimates of collision repair prices can be annoying, the reality is that costs vary significantly depending on several circumstances, including the following:

  • Make and model: New and expensive luxury vehicles will generally total more when repairing than older and less expensive vehicles.
  • The severity of the damage: extensive damage will be more expensive to repair than a minor dent or scratch.
  • Extras: The more bells, whistles, and sensors your car has, the higher the cost of repairs.
  • Location: Labor costs, parts availability, and competitiveness among body shops influence what you pay.
  • The shop: You have the option of taking your vehicle to a dealership, an independent shop, or a mobile service. In general, dealerships are the most expensive.

Frequently Asked Questions

What does bodily injury liability insurance entail?

Bodily injury liability insurance compensates individuals for economic losses suffered from an automobile accident caused by you. This may include medical expenses, lost payment, and attorney’s charges.

Do I require bodily injury liability insurance?

Yes. Except in Florida, all states require bodily injury liability coverage to enroll a vehicle.

What is the best amount of bodily injury insurance to buy?

You’ll almost certainly need to purchase the lowest required by your area, but we advice drivers purchase extra depending on their driving frequency.

Is bodily injury insurance costly?

The rate of bodily injury liability coverage relates to the amount purchased and other criteria, such as your driving record. The more policies you are buying, the more affordable it will be.

While a legal low insurance plan in Pennsylvania costs $532 every year on aggregate, we discovered that increasing your business interruption plan only boosts your fees by roughly 10%.

Will insurance cover a rental if my car breaks down?

Your insurance will not cover rental car expenses if your car breaks down. To take advantage of that service, you must first purchase rental car coverage, and it is an optional plan that usually carries an excess. 

What other options do I have to help protect my car?

If you want additional security against costly repairs, you may want to consider purchasing a car warranty. Typically, a deposit will cover specific parts or other faults for a set period or until the vehicle reach a prescribed mileage.

Does Car Insurance Cover Minor Damage?

Car insurance is a type of protection that covers the cost of repairs if someone else damages your vehicle, if you damage another car, or if natural disasters or falling objects damage your vehicle.

If you can resolve the problem without filing a claim, you will avoid increasing your insurance rate. Always get an estimate before you file a claim to determine if it is worthwhile to do so.

Bottom line

Body repairs can range from minor scratches and dents to complete component replacement. Collision repair rates can also vary significantly so that they can charge you as little as $50 or as much as $2,500 or more depending on the extent of the damage, the make and model of your vehicle, and who you choose.

It pays to review your auto insurance policy annually to make sure you have adequate coverage. This way, knowing how to estimate recurring auto damage repair expenses can help you determine how much money to set aside for unexpected accidents.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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