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Q

I was looking at my policy and I have Collision, BI, PD and "OTC", what is OTC?


A

OTC stands for Other Than Collision, another name for comprehensive coverage which is optional physical damage coverage which helps protect your vehicle.

Comprehensive covers your vehicle for losses resulting from incidents other than collision (OTC). For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. This optional auto insurance coverage pays to fix your vehicle less the deductible you choose.

We'll also go over your other coverages you mentioned so that you have an understanding of what collision, bodily injury liability (BI or BIL) and property damage liability (PD or PDL) are.

Collision coverage can cover damage to your car when your car hits, or is hit by, another vehicle, or other object. It does not matter who is at fault in the accident that damages your vehicle, you can make a claim under collision however you will have a deductible to pay. It is optional physical damage coverage that helps protect your vehicle.

Bodily injury (BI) and Property damage are both types of liability coverages that thus cover those that you may cause damage to in an accident.

BI a type coverage that covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering.

In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability does NOT cover you or other people on your policy. It is mandatory in most states.

PD covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

You can learn more about the various types of auto insurance coverages that are available by viewing our resource pages which include our glossary, coverage definitions, discount guide, and featured articles.  Then get a free quote here from an auto insurance specialist.


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