Automobile Liability and Physical Damage
Automobile Insurance is divided into two parts: Liability and Physical Damage.
Automobile liability - consists of a legal responsibility for bodily injury or property damage arising out of the ownership, maintenance or use of autos. In this context, autos can be described as cars, trucks and trailers.
Automobile physical damage - responds to property loss exposures. Basically, three automobile physical damage coverages are available under the business auto form:
Collision - The insurer agrees to pay for a direct and accident loss or damage to a covered auto or its equipment by collision of a covered auto with another object or overturn of the covered auto.
Comprehensive – The insurer agrees to pay for loss to a covered auto or its equipment resulting from any cause except collision or overturn and subject to certain exclusions. Specified causes of loss – The insurer agrees to pay for loss to a covered auto or its equipment caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism.
Towing and labor coverage can be included under the physical damage portion of the automobile insurance policy.