OTC is the short form of Other Than Collision, an auto insurance coverage that is also known as Comprehensive coverage. It is a type of physical damage coverage. Other Than Collision is an optional physical damage coverage you can buy to protect your vehicle. A vehicle damage or loss can happen for reasons other than collision with other vehicles or objects. The other than collision policy covers losses other than those covered under the physical damage coverage of the collision coverage.
Comprehensive or OTC covers losses resulting from falling objects, fire, theft or larceny, missiles, riot or civil commotion, explosion, windstorm, hail, earthquake, flood, vandalism, bird or animal hit and breakage of glass. This optional auto insurance coverage pays the cost of repairs to your vehicle minus the deductible you chose at the time of buying your policy. Usually the OTC (Comprehensive) coverage is bought in combination with Collision coverage. Collision coverage will pay for the damages to your vehicle when it is hit by another vehicle or object. This coverage compensates for the losses regardless of who is at fault. You have to pay your deductible first before your auto insurance company pays for the remaining amount.
To cite an example, if your auto glass is broken by windblown objects or your vehicle is overturned by the force of the wind, or auto glass damage due to a sudden drop in atmospheric pressure, are all covered by OTC policy. In such cases, windshield glass claims the deductible will not apply.
The OTC or comprehensive coverage is optional but most drivers carry this coverage to protect their vehicles from damages due to any unforeseen natural or manmade disaster or theft. This coverage is also required by most lenders as criterion for qualifying when you finance your vehicle. You can check with your state laws and recommendations of your agent about the extent of coverage that you need.