insurance

Own Damage

Coverage in auto insurance that pays for damage to the policyholder's own vehicle, regardless of who is at fault in an accident. This typically includes collision coverage (damage from crashes) and comprehensive coverage (damage from theft, vandalism, weather, or other non-collision events).

Example

“After the hailstorm damaged her car's roof and windshield, Maria's own damage coverage paid $4,500 for repairs minus her $500 deductible.”

Memory Tip

Think 'Own Damage = Own Car' - it's insurance that fixes YOUR vehicle when something bad happens to it.

Why It Matters

Own damage coverage is crucial for protecting one of your largest assets - your vehicle. Without it, you're personally responsible for all repair or replacement costs, which could mean paying $20,000+ out of pocket if your car is totaled, even if the accident wasn't your fault and the other driver is uninsured.

Common Misconception

Many drivers think liability insurance covers their own vehicle damage, but liability only pays for damage you cause to others. Own damage coverage is separate and optional in most states, so drivers who skip it to save money may discover they have no coverage for their own vehicle repairs after an accident.

In Practice

John's 2-year-old car worth $25,000 is rear-ended by an uninsured driver, causing $8,000 in damage. His own damage coverage pays for repairs minus his $1,000 deductible, so he pays $1,000 and insurance covers $7,000. Without own damage coverage, John would have paid the full $8,000 since the at-fault driver has no insurance to cover the damage.

Etymology

This straightforward term developed in the early automotive insurance era, literally meaning damage to one's 'own' vehicle as opposed to damage caused to others' property, distinguishing it from liability coverage.

Common Misspellings

own damgeowndamageown damagesown-damage

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