A vital part of insurance coverage under your car insurance is either collision or other than collision. Sounds simple, right? Collision coverage pays to repair the damage to your car in the event of colliding with an object, or over-turn of the vehicle. Typically, this coverage has a $500 deductible.
What if it isn’t a collision or over-turn? The second part of this important coverage is Other Than Collision, sometimes known as Comprehensive coverage. This pays in the event there is damage to your car due to the following:
Fire, lightning, hail, falling objects, flying objects, running into animals, flood, and glass damage.
In the case of either coverage, in Pennsylvania, the insurance company will only pay you for the repair up to the value of the car. If the cost to repair the car exceeds the car’s value, this would be considered a “totaled” car.
We believe it makes sense to keep the Other Than Collision coverage on a car, but you should think about removing the collision coverage once the car’s value declines due to a point that you would not need the money from the insurance company to repair or replace your car. Questions? Give us a call.