The End of 'Comprehensive' Automobile Coverage

Image by  Pedro Simao  via  FreeImages

Image by Pedro Simao via FreeImages

Most insurers no longer offer 'Comprehensive' automobile coverage, the age-old sidekick of 'Collision' coverage. Now, you have the option of 'Collision' coverage and 'Other-Than-Collision' coverage. What's changed and why did it change?

You may have noticed that your automobile insurance policies no longer have 'Comprehensive' coverage shown, and instead, there is now 'Other-Than-Collision' coverage, often shortened to 'OTC'.

The Good News: only the name has changed. The coverage provided in 'Comprehensive' coverage versus the new 'OTC' coverage is identical: they still cover the same things and have the same exclusions.

The Bad News: Both 'Comprehensive' and 'OTC' don't cover everything that could happen. And that's what spurred the name change: the term 'Comprehensive' seems to imply that everything is covered, when, in fact, there are still exclusions in 'Comprehensive' coverage (and its modern equivalent, OTC).

So what?

So...nothing, really. This is an industry-wide movement based in trying to be more clear about the intention of the policy. The term 'Comprehensive' was a bit misleading, so now we have the term 'Other-Than-Collision' coverage. It's not sleek and catchy, but it sure is accurate!

Now that you know, go quiz your friends!


Colten Zamrzla, CPCU

Colten first started in the insurance industry in 2010. He then pursued a Bachelor's degree in Finance & Insurance from the University of Nebraska at Lincoln. Once graduated, he immediately started studying for the CPCU and achieved it in just shy of a year. He is solely focused on commercial insurance, able to assist all types of businesses and nonprofits in risk management.

Colten has dedication and passion for his clients and the insurance industry as a whole. He dedicates time to furthering his knowledge on all things business and insurance, and he volunteers for the Independent Insurance Agents of Nebraska, a state-based trade association.