Comprehensive Auto Insurance | Florida Auto Insurance

what is comprehensive auto insurance

Comprehensive Auto Insurance

What Is Comprehensive Auto Insurance Coverage?

Comprehensive auto insurance is a policy that is meant to do exactly what the name suggests, give the auto owners comprehensive or complete coverage against anything that could possibly happen to their vehicles. This insurance coverage is also known as the OTC (other than collision) coverage or simply referred to as Comp. There are several things that the insured vehicle is protected against when it is comprehensively covered including the following:

Physical damage, such as from a collision
Vandalism, not including harm done by family members or employees
Fire
Theft
Acts of God such as a tree falling and damaging your car
Natural disasters such as hail, hurricanes or floods
Riots
Damages caused by animals
Getting windshield damage (glass breakage)
Damage from flying or falling objects/missiles

Not all comprehensive auto insurance policies offer the same coverage, so it is best to read and understand the terms and conditions associated with your policy. Some policies have an extension feature so that you will still be covered if you are driving a car other than your own. This extension would normally offer reduced benefits.

Overcoming the Customary Confusion Associated with Comprehensive Auto Insurance Coverage and Collision Coverage

Comprehensive auto insurance covers things your regular collision policy doesn.

There can be some confusion on the part of vehicle owners about exactly what they are getting when they purchase a comprehensive insurance coverage. The two insurance coverages are not the same, and purchasing one does not mean that you automatically get the other. Although some insurance companies will allow vehicle owners to purchase the comprehensive without the collision coverage, most do not allow or encourage this practice. This is because the comprehensive policy does not provide coverage for damages resulting from a car accident.

As the name OTC suggests, the coverage is for damages from events other than collisions. This simply means that if you purchase only the comprehensive coverage, you run the risk of having to pay the full cost to cover your vehicle expenses stemming from an accident that you may have caused. These expenses include damages to the other party as well as your vehicle. If you have collision insurance, it will cover the cost of repairing or replacing your vehicle. It is best to have both policies so that you will have maximum protection.

Comprehensive insurance coverage will protect your car against damages resulting from non-accident occurrences. The coverage offered by a comprehensive insurance package differs from company to company. It is best to shop for a policy that offers as much protection as possible and that you are truly satisfied with. Each policy may exclude one coverage or another, but they generally provide coverage for most situations in which a car may be damaged, except for accidents. Each comprehensive insurance plan will give specific explanations of the coverage the company offers for damages to your car, resulting from the various incidences included in their policy. It is best to familiarize yourself with the terms, conditions and exclusions of the policy you decide to use.

Payment Features of a Comprehensive Insurance Policy

Comprehensive insurance policies do not come into effect immediately. The vehicle owner will have to pay deductibles that must accumulate to a certain amount set by the insurance company before it will start to pick up the bill. The costs of your premiums are related to the amount you pay for your deductible. The higher your deductible, the less you will pay for your monthly premiums. The simple math here would indicate that you can save on your monthly auto insurance bill by raising your deductible payments. The catch is this, if you file a claim you may have to make a lot of payments from your own pocket.

In the event that you do have to file a claim, the insurance company will make payments that will cover the fair market value of your vehicle, and this could be much less than it will actually cost to replace it. To bridge this gap, you may need to consider taking out a gap coverage that will cover the difference. Insurance companies may require that you have a gap coverage if you are going to lease your car.

How this Car Insurance Plan Works

Once you are comprehensively covered, the insurance company will take care of the expenses due to the other party for personal injuries, damages to their car and/or property damage. Damages to your car from an accident you caused will attract some coverage from the comprehensive plan. However, the amount you will receive to repair or replace your vehicle will be determined by your insurer. This amount is reduced by your deductible payments, and the balance is paid to you. If, for example, the cost for the loss or damage to your car is determined to be $15,000, and your deductible payment is $1,000, your insurer will subtract the $1,000 and issue a check bearing the balance of $14,000. If the cost of replacing or repairing your vehicle is actually more than the sum determined by the insurer, then you will have to pay this difference from your pocket unless you have your collision insurance in place.