Comprehensive automobile insurance provides important coverage. It covers most types of damage to your car that doesn’t involve an accident with another vehicle. OTC, or other than collision insurances is a common name for this type of coverage. Although it is sometimes shortened to “comp”, brokers and agents often refer to the exact same thing. Comprehensive will cover your damages if your vehicle is damaged beyond collision.
There are two basic elements to automobile insurance
The first is liability coverage, and the second is for physical damages. Liability insurance is required in almost all states of the United States. This crucial component of insurance provides coverage for bodily injuries or death that result from an auto accident, provided you are found to be responsible. You can choose to cover physical damage, but it depends on many factors like whether you own or finance your car. It covers vehicle repairs and replacements after a collision, or any other event that occurred while the vehicle was being operated.
You have two options for “physical damages” that you can choose to add to your policy. Comprehensive and collision insurance are the two types of coverage available. Collision insurance covers you if you are involved in an accident that causes damage to your vehicle. You could run into another vehicle, hit a tree or be run over by someone else. Collision protection covers the cost of repairs to your vehicle or, if the car is totaled and worthless, the replacement cost. It is a smart idea to purchase collision insurance if you own a car that is older than 10 years. Vehicles are costly to replace and repair. It might be smart to just get liability insurance if your car is worth less than $2,000, or something similar.
Comprehensive insurance does not cover collisions with other vehicles. This is an easy way to recall what comprehensive coverage covers. Many people mistakenly believe Collision insurance covers hitting an animal while driving. Comprehensive insurance covers this. Comprehensive claims are often filed by people who have experienced theft or mother nature. Flooding or your car being stolen are examples of comprehensive claims. These are the most common incidents that result in a comprehensive claim:
* Stolen Vehicle
* Vandalism (tire slashing, “keying the vehicle”).
* Fire
* Flooding and hailstorm
* Wind damage
* Windshield Damage
* Falling objects such as tree limbs and construction materials
Make sure you read every word in your policy. For example, vandalism by a family member or situations involving employees might not be covered. You should also know that nearly every insurer will require you purchase collision insurance before you can get comprehensive coverage. You can also buy collision insurance without having to add comprehensive. Comp car insurance will be required if you finance or lease your vehicle. This is a protection measure that lenders take to protect their loan.
Comprehensive Auto Insurance: The Cost
You will pay more for comprehensive insurance if you add it to your policy. Rates will vary depending on several factors, including:
* The driver’s age
* Driving record
* Credit Record
* Marital Status
* Annual Miles Driven
* Address at Home
This type of additional protection is more expensive, but there are some tips that you can use to lower your premium. Increase your deductible to $1,500. A high deductible can lower your premiums and make it possible to get comprehensive insurance.