{"id":387,"date":"2014-12-22T20:53:00","date_gmt":"2014-12-23T00:53:00","guid":{"rendered":"https:\/\/project-011.com\/?page_id=387"},"modified":"2016-03-10T16:31:01","modified_gmt":"2016-03-10T21:31:01","slug":"comprehensive-coverage","status":"publish","type":"page","link":"https:\/\/project-011.com\/?page_id=387","title":{"rendered":"Comprehensive Coverage"},"content":{"rendered":"\"Comprehensive<\/a>\n

Comprehensive Coverage on an Auto Policy<\/h1>\n

The coverage we refer to as Collision and Comprehensive<\/strong> in your policy are physical damage protections for the damage done to your automobile.\u00a0 This section covers the\u00a0Comprehensive coverage which is often referred to as Other Than Collision<\/strong> (OTC) coverage.<\/p>\n

Comprehensive coverage is more appropriately referred to as \u201cOther Than Collision\u201d coverage in the language of the typical auto insurance policy because it covers most all other physical damage that can occur to a car other than collision.\u00a0 Collision refers to the damage suffered by your owned auto when the damage is caused by an object or your car in motion.\u00a0 Comprehensive coverage, on the other hand, includes many of the types of losses that happen when the vehicle is not in motion.\u00a0 For example, comprehensive coverage protects the auto when a tree limb falls on the car, or when it suffers an electrical short and burns.\u00a0 There are exceptions to this generality.\u00a0 For example, comprehensive coverage includes instances when the car is in motion and strikes a bird, deer, or animal.\u00a0\u00a0 If a stone breaks the windshield while the vehicle in motion it is still a claim paid under OTC\u00a0coverage.\u00a0 All glass damage is covered as OTC losses.\u00a0\u00a0 Comprehensive coverage includes damage caused by theft, vandalism, fire, flood waters, and other weather events like wind or hail storms.<\/p>\n

Comprehensive coverage on an auto insurance policy is not mandatory.\u00a0 Comprehensive coverage is often\u00a0a very reasonably priced\u00a0physical damage coverage on an auto insurance policy.\u00a0 Comprehensive insurance is damage you claim on a first party basis from your own insurance company.\u00a0 If you have a loan or lease on the vehicle you lender generally requires \u201cfull coverage\u201d which means that collision and comprehensive damage is covered under your policy.\u00a0\u00a0OTC insurance is almost always offered with a deductible but it is often less than the deductible on collision coverage.\u00a0\u00a0The presence of deductible\u00a0means that you are responsible for the damages you incur up to and including the deductible amount.\u00a0 The damages above and beyond the deductible are then the responsibility of the insurance company up to the value of the vehicle.\u00a0 OTC losses are sometimes referred to the “acts of god” losses since they do not require the assignment of fault to any individual.\u00a0 The most common deductibles are $100, $250\u00a0and $500 for\u00a0OTC coverage\u00a0these days but depending upon the carrier, higher and lower deductibles may be available.\u00a0 We usually suggest deductibles consistent with your ability to pay and your comfort if required to pay a larger deductible in a loss.\u00a0 Generally speaking, the higher the deductible the lower the cost of the collision insurance on your policy.\u00a0 One option available to insurance clients by some carriers is the availability of a $0 (zero) deductible on glass damage which permits a higher deductible as an option for all other losses.\u00a0 Most companies will also waive the deductible for glass repair.\u00a0 Replacement of glass, however, will still require a deductible be subtracted if one is present on the policy.\u00a0 The idea is that minor chips, pecks and bulls-eyes can be repaired in most instances, saving the full cost of replacement glass.<\/p>\n

Valuation of your damage and your vehicle after a loss is one of the most contentious areas experienced by insurance customers with their insurers.\u00a0 Unless the vehicle is insured under special terms reserved for vehicles with unique value, or where there are stated limits of coverage, everyday autos are insured with valuation determined according to what is known as \u201cactual cash value.\u201d\u00a0 ACV, as it is known, refers to the depreciated value of a vehicle at the time of loss.\u00a0 Condition may influence the value, as well as the marketplace of values for similar cars in similar condition.\u00a0 All losses where repair is necessary are subject to consideration of the repair as betterment.\u00a0 Betterment violates basic concepts of insurance so some carriers may ask for non-critical components to be repaired with used, reclaimed, or reconditioned parts.\u00a0 It is consistent with industry practice and some carriers give you the choice to opt for new parts rather than used or reclaimed parts for an additional premium.\u00a0 Your\u00a0OTC\u00a0coverage does not have a limit.\u00a0 Instead, your carrier uses a symbol system that represents the approximate new cost of a vehicle and they then apply aging factors to the car to adjust the cost for physical damage coverage over time as the vehicle declines in value and ages (depreciates with use).\u00a0 These symbols are used by every carrier and most insurers use similar systems of evaluating cost for insurance cars.\u00a0 Final valuation is determined based on several factors including the approximate cost of similar vehicles for sale in your area.<\/p>\n

If you have any concern over the value of your car or whether it still makes sense to insure for physical damage coverage, consult with me or consider the value of your car in pricing guides like NADA<\/a>, Kelley Blue Book<\/a>, Edmunds<\/a>, or Consumer Reports <\/a>car price services.<\/p>\n","protected":false},"excerpt":{"rendered":"

Comprehensive Coverage on an Auto Policy The coverage we refer to as Collision and Comprehensive in your policy are physical damage protections for the damage done to your automobile.\u00a0 This section covers the\u00a0Comprehensive coverage which is often referred to as Other Than Collision (OTC) coverage. Comprehensive coverage is more appropriately referred to as \u201cOther Than […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":14,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"tpl-auto-insurance.php","meta":{"footnotes":""},"class_list":["post-387","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/project-011.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=387"}],"version-history":[{"count":7,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/387\/revisions"}],"predecessor-version":[{"id":895,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/387\/revisions\/895"}],"up":[{"embeddable":true,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/14"}],"wp:attachment":[{"href":"https:\/\/project-011.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}