Comprehensive Car Insurance Is Important for Accidents Like Deer, Tree Branches, and Thieves

Imagine that you had an great-uncle that you never knew about. One day you get a letter in the mail saying that he’s passed away and left you $25,000. You hate to be excited at the news of a relative’s death, but you never knew Great Uncle Sven, so it’s hard to shed a tear for him - and having a check for $25,000 in your hand sure feels great!

The feeling doesn’t last for long, though, because you’re off to the dealership to buy a quality used car. Once there, the car salesmen are all over you when you tell them that financing will not be an obstacle - you will be paying in cash.

You find a really great car that’s only a year old, and you lay down the full $25,000. Although it felt great to have that check in your hand, it’s going to feel even better as you drive your away in your new (to you, at least) car.

What Exactly Is “Full Coverage?”

But first, you have to get insurance. Since you’re not financing the car through a bank, you’re only required to get the minimum auto coverage allowed by law. You decide that it’s worth it to spring for “full coverage,” since you wouldn’t want to get in a freak accident and lose your $25,000 investment.

You call an insurance company from the dealership’s phone and speak to someone in a call center. The dizzying array of insurance terms confuses you, but you ultimately settle on collision coverage and think that you’re fully covered. But are you?

Easy Come, Easy Go - The Importance of Understanding Your Insurance Options

You drive your new car home from the dealership and park it in your driveway. All afternoon long and into the evening, you peer out of your kitchen window to feast your eyes on your new pride and joy. First thing in the morning when you wake up, you rush to the window to take another look at your new wheels, but - something terrible has happened!

Inexplicably, a large branch from your neighbor’s oak tree fell on your car, smashing the windshield and severely denting the hood. You run over to your neighbor’s house and knock on the door. After talking with him, he says that he thinks his home insurance will cover the damages but you should call your own agent as well. You do, but your homeowner’s insurance agent says that this falls under your auto coverage. So you call your auto insurance company, but surprise - damage from falling tree branches is not covered by collision insurance.

Don’t Let This Happen To You

Most people finance their automobiles through a bank or other lending institution, and in such cases, the lender will make sure that their interests are fully covered by both collision and comprehensive insurance. If you are lucky enough to pay cash for a car, be sure that you know your options. Collision insurance covers only damage sustained by hitting another vehicle, flipping your car over, or hitting a stationary object like a traffic sign. Comprehensive covers animal accidents, theft, and most acts of nature.

The best way to ensure that you’re fully informed is to visit web sites like this one, and to comparison shop for the best car insurance rates and packages. The more agents you talk to and policies you review, the less likely that an incident like the one described in this story will happen to you.