The term material damage is often used in property-related insurance such as car insurance. The reason why you take out car insurance is because the car, as your property, has a specific monetary value. Any damage or loss of the car will result in a monetary loss to yourself and it is this risk that you take out car insurance against. If no material damage took place you will have no claim against your car insurance.

The term material damage will always refer to physical property, it is something you can see and touch. In car insurance reference is also made to different classes of insurance such as fire, theft and accident for example. Whether your car is damaged or destroyed in a fire, or damaged or written off in an accident, material damage will be suffered.

Should you take out third party insurance only you will have no cover against any material damage suffered to your own car, it will only cover you against the claims of the third party in case of an accident. If you take out third party, fire and theft cover, your own car is covered for fire damage or theft but not for any material damage caused to your own car. The only way to ensure that material damage to your own and third party cars is covered is to take out full comprehensive car insurance.