What is meant by 'physical damage coverage' in an auto insurance policy?

Physical damage coverage refers specifically to the part of an auto insurance policy that provides protection against damages to the vehicle itself. This can include coverage for situations like collision, where the insured vehicle is damaged due to a collision with another vehicle or object, and comprehensive coverage, which addresses non-collision incidents such as theft, vandalism, or natural disasters. This type of coverage ensures that if the insured vehicle suffers damage, whether from an accident or other types of incidents, the policyholder can receive financial compensation for repairs or replacement costs, thereby helping to mitigate the financial impact of such damage. Understanding this coverage is crucial for vehicle owners, as it helps them protect their investment in their vehicles.