Own Damage
Own Damage (OD) is the portion of an auto insurance policy that covers damage to your own vehicle from accidents, theft, vandalism, or natural disasters. It provides financial protection for repairs or replacement of your car regardless of who is at fault in an accident.
Example
“Sarah was grateful she had own damage coverage when her car was totaled in a collision, as it covered the $15,000 replacement cost even though she was at fault.”
Memory Tip
Think 'OD = Own Damage' - it covers damage to what you OWN (your own car), not what you owe others.
Why It Matters
Own damage coverage protects one of your most valuable assets - your vehicle - from financial loss due to accidents or other covered events. Without it, you would pay out-of-pocket for all repairs or replacement costs, which can easily reach tens of thousands of dollars.
Common Misconception
Many people think own damage coverage is automatically included in basic car insurance or that it covers mechanical breakdowns and wear-and-tear. In reality, it's often optional coverage that specifically excludes mechanical failures and normal maintenance issues.
In Practice
If you have a $25,000 car with own damage coverage and a $1,000 deductible, and your vehicle suffers $8,000 in collision damage, your insurance would pay $7,000 while you pay the $1,000 deductible. Without own damage coverage, you would be responsible for the entire $8,000 repair bill. The coverage typically costs between $500-$1,500 annually depending on your vehicle's value and your driving record.
Etymology
The term comes from the insurance industry's need to distinguish between coverage for damage to one's own property versus liability for damage to others' property, becoming standard terminology in the mid-20th century.
Common Misspellings
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Related Terms
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See Also
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