MONDAY, AUGUST 19, 2013
 What does Automobile Comprehensive Insurance cover? For years this layer of Auto Insurance was not clearly named (the word, "comprehensive," does not communicate very much, does it?) Then someone decided to call it, "Other than Collision (OTC) That made a little more sense.
This is the layer of physical damage insurance that pays for repairs to your automobile if the damage is an event such as glass breakage, or a peril such as hail, vandalism, animal damage, theft, fire, lightening, etc. (Anything other-than-a-collision) As with collision, the premium can be controlled by the amount of deductible you are willing to pay in the event of a loss in this area.
A unique feature of OTC is that it can be carried without the presence of Collision coverage. For instance, Your older car has some collision damage you do not intend to repair. You cannot obtain collision insurance under that circumstance. However, you want to have coverage for glass breakage. It is possible to maintain OCT coverage without the collision layer. (Not the other way around, however)
You can have "comp." only, also. Let's say you have your car in storage in your garage or a storage lot. You are not taking it on the road, so you do not need liability, medical, uninsured and underinsured motorist or collision, but the car has value and you want to protect it against physical damage. With the permission of the insurance company, and if there is an outstanding loan, from the bank, you can insured it with Comprehensive Only. In the event of a theft, hail, fire or any damage other than a collision, the loss will be covered.
Comprehensive coverage--a poorly defined and misunderstood area of auto insurance, but a very valuable ally in rounding out your automobile insurance package.
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