AUTO INSURANCE PHYSICAL DAMAGE COVERAGE:
Comprehensive Coverage (other than OTC, COMP, Collision)
This type of auto insurance policy covers your car or in certain cases any other vehicle that you might be driving.
This cover excludes damages as a result of a direct collision, or any collision, in that case. A comprehensive coverage covers losses incurred by theft, damage by a natural calamity like flood or storm, fire or animals. This policy covers the cost of the repair above your deductible limit.
The higher deductible you chose the lower your premium gets. However take care to agree to a deductible as you can afford in a worst case scenario. You might think, "Anyway this policy doesn't cover collision. What is the use of paying high premium?
Better pay low premium and agree to a high deductible." However, think again, a deluge can prove to be too much trouble. Like all other policies, coverage in this case is also defined by the company's terms and conditions as mentioned in their auto insurance quote.
Deductible is the amount you are entitled to pay in case of any accident. For example, if you have agreed to pay a deductible of say $1000 and your car's repairs cost you $1500. You'll need to pay $1000 on your own and the insurance company will pay the additional $500. If you chose to bear higher deductible, your premiums will be lower.
To make the most of it you should use this saving to come to your rescue in case these damages prove to be too expensive.
If you have acquired a brand new car, this cover might come of use to replace in case of lose or repair in case of damage. If you have an old car, you may prefer to save the premiums and avoid altogether this policy. If you lease or rent a car, the company might need that you are insured with a comprehensive cover.
Collision Coverage, popularly known as 'Coll Cover' covers any and all damage that can be caused if your car hits or is hit by another vehicle or an object. This insurance policy pays you an amount less than the deductible you have decided. Rules for Collision coverage is the same as comprehensive coverage: chose the highest deductible
you can afford to avoid paying high insurance premiums. This policy is also limited by the company's terms and conditions as mentioned in their auto insurance quote.
If you have an old car you can skip this insurance as the cover is usually limited by the vehicles' market value.