The most popular type of auto insurance coverage is comprehensive. (The next most popular is collision.) Comprehensive coverage might be optional depending on a few different factors, but many people opt to add it to their auto insurance policy. If you have never heard the term comprehensive coverage, you may know it by its other name – OTC coverage (other than collision). This type of coverage takes care of most all types of damages that are incurred by things other than accidents involving other vehicles.
Adding comprehensive coverage is not something that everyone opts for. The people who do add it to their policy typically have vehicles that are new or costly models. Those driving these types of cars find that comprehensive coverage is well worth the extra added expense, while others who have less than new and low to moderately priced cars may not see the point in making their rates go up. If you do choose to add this to your policy, there are many good things that it can do for you if the need for it arises. The following are some of the things for which comprehensive coverage will offer protection:
-You vehicle is damaged in a flood or other natural disasters such as hurricane, earthquake or tornado.
-Someone has vandalized your vehicle.
-Your vehicle is damaged by a fire.
-Your vehicle is damaged from hitting an animal.
Having protection from these types of incidents can be highly desirable because you never know when disaster can strike. People who live in places that are prone to natural disasters will find comprehensive coverage to be a necessity that they cannot afford to be without. When putting your policy together, make sure that you read all the fine print to make sure that everything you want your comprehensive coverage to take care of is present.-Your vehicle is stolen.
Comprehensive Coverage Advice and Recommendations
If you are having a difficult time deciding if you want or need to have comprehensive coverage on your auto insurance policy, here is some of our standard advice:
-If you have a vehicle that is financed or leased, having comprehensive coverage may be required. Check your state laws to find out if this applies to you. The reason that this may be true in your state is that the finance company wants to ensure that everything is covered for every possible scenario. They do not want to lose any money on their investment. After all, the vehicle technically belongs to them until you have it paid off.
-If you have a newer model car, it is worth getting comprehensive coverage. This is for your protection and may come in handy one day.
-If you have a vehicle that is older, comprehensive coverage is not something that is very important in most cases because it is not financially sound. The only older car that would benefit from comprehensive coverage is a classic.
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