Physical Damage coverage is a combination of a few insurance coverage that protect your vehicle. This coverage include Collision coverage, and Comprehensive coverage.
Collision coverage - provides protection for your vehicle if you are involved in an accident.
Comprehensive coverage - provides protection if your vehicle is damaged or stolen.
Do you need Physical Damage insurance?
To provide you with the most protection for your investment - you should obtain Physical Damage insurance. If you do select Physical Damage insurance, it is recommended to insure it for its actual value. This can change depending on a few factors, but getting your vehicle appraised is a great start.
If your vehicle is leased or financed, it is usually required to have Physical Damage insurance. If your vehicle is paid off, physical damage coverage is optional.