What is Section C?

Auto insurance policies are divided up into sections. If you have damaged the vehicle then it is Section C that responds in a claim. If you have not bought certain coverage then you will not have a claim. The exception is when someone else has hit you and is at fault for the damage.

So first off we will look at what is the possible Section C coverage you can buy. We will go from the least to the most.

  • Specified Perils - this will not cover any claims for collision or upset, vandalism or impact with an animal. It will cover fire, theft, wind, hail, flood, etc. This is often referred to as "parking insurance" because it is the least expensive of the physical damage coverages. When it is used as parking insurance you are not driving the vehicle because it is parked on a temporary basis.
  • Comprehensive - this will not cover any claims for collision or upset. It has everything that you see under Specified Perils but it also includes vandalism and impact with an animal. You can buy a more limited form of glass coverage which helps to reduce the cost.
  • Collision and Upset - this covers collision and upset of the vehicle. It does not include Comprehensive or Specified Perils. You need to have one of those underlying coverages before you can buy the collision and upset. You cannot just buy this coverage by itself.
  • All Perils - this covers everything that would have been listed separately under Specified Perils, Comprehensive and Collision and Upset. Some insurance companies will allow a limited glass price reduction but most do not.

So why doesn't everyone just buy All Perils? It is because of the deductibles. All Perils would be one deductible amount. Most people want a bit higher deductible on Collision and Upset and a lower deductible on Comprehensive or Specified Perils.
The price goes up with the lower the deductible so this is why most people will split up their insurance coverage under Section C.

Do you know what you have for coverage under Section C? Take control of your insurance. Talk to your insurance company, broker or agent. Find out what is available to suit you best.