Comprehensive auto insurance is the part of your insurance policy that protects against the physical damage of your vehicle. It may be called by different terms. One is OTC or other than collision or as a shortened name of just comp. It covers the damages that are not covered by the collision portion of your policy. Comprehensive auto insurance coverage does not pay for virtually any physical damage that happens as a result of a non-collision accident, there are limitations to it. It usually provides for repair or replacement of the vehicle, but not for reimbursement for personal items, things like a custom stereo, that have been stolen or damaged while in the car. A comprehensive auto insurance deductible is another limitation of sorts. There is an amount that the driver will have to pay before the comprehensive coverage begins to pay. This can be as little as two hundred dollars and can even go up to fifteen hundred dollars. The cost of the premium for this coverage depends a bit on what level of deductible you choose. Generally, the higher the deductible is, the lower the price is to carry the insurance.
The cost of the comprehensive auto insurance coverage is dependent on a few factors. One is the age of the driver. Another is the mileage expected for the car in a year or in the policy coverage period if it is less than a year. Policies can be written for six months, ten months or for twelve months. The most common are six and ten month policies. Further, some areas have a higher premium based on crime and other factors in that part of your community. The age and model of your car also play a part in the amount that it will cost to get this insurance. Finally, the comprehensive auto insurance deductible amount is the final piece in determining this cost.
Comprehensive auto insurance is not strictly required by any state, but if you are leasing a vehicle or you have a loan for a new or used car, then the leasing company may require comprehensive coverage to protect their investment. Some people with older cars may opt to drop that insurance since comprehensive payments are based on the cash value of the car. If you own a car that is around four thousand dollars in value, it may be advisable to keep comprehensive, but anything less may not be worth the premium. If your car is in a high risk category, then it could be more apt to be stolen than another type of car. Comprehensive insurance may be a good idea in this case, too.
Comprehensive auto insurance is the coverage that has to do with the physical damage caused to your car from a non-collision incident. So, generally, theft, weather-related events like wind, hail, flooding and fire are covered issues. Things like glass breakage from a road hazard, damage by an animal or a riot or vandalism are usually covered, as well. If you have a question you can ask an agent, consult an online frequently asked question page or if you have already purchased the policy, you can read the information that is sent to you following your purchase. It should outline all that is covered.
While comprehensive insurance is not required by ay states, there are situations in which you must carry the insurance. One of these is if you have a car loan or if you lease a car, the lending company usually requires comprehensive insurance coverage. If you have an older car you may not want this coverage.