Dealing with insurance issues can be a real pain, especially when you have terms thrown at you that you may not be familiar with. The first thing you need to know is what type of insurance you have and what it covers. A common type of coverage is comprehensive insurance. However, what does full coverage really mean, and why would you want it?
Why do insurance conditions have to be so confusing?
It’s time to get insurance before something bad happens. For most people, this is usually at the time of vehicle purchase. For many of us, we already have so much to do, like trying to get financing, signing paperwork, and negotiating a better price, that buying insurance might not seem so important. This is one of the most essential parts of buying a car.
The main problem is that there are many types of insurance, and if you get it wrong, you could end up paying later. For example, if your car is stolen and your insurance policy does not cover the theft, you will be responsible for purchasing a new vehicle out of pocket.
This also goes for wrecks, damage from falling trees and a long list of other problems that are impossible to predict. Knowing the insurance terms can help you determine which insurance is right for you so that in the event of an accident, you don’t have to scramble to find the money to pay for it yourself.
What exactly is comprehensive insurance?
Comprehensive insurance should be high on your wish list when it comes to getting insurance. But what is comprehensive insurance and what does it cover?
Access Auto Insurance says, “Comprehensive insurance coverage pays to repair damage to your car caused by factors other than collision, including fire, theft, falling objects, etc. It also covers your car in the event of a collision with animals.
In other words, it will cover you in situations like a deer running headfirst into the side of your car. It will also come into effect if you are cruising through the mountains and a large rock hits the roof of your vehicle. This also applies if a tree branch falls on your truck during a storm.
Another area in which your all-risk insurance comes into play is in the event of a fire. Some vehicles have a known history of catching fire. This could be due to wiring issues, motor issues, or factors we don’t yet understand.
If your vehicle is stolen, your comprehensive insurance will help cover the costs.
It is essential to read the fine print carefully and ask your agent questions. In many cases, if the car is totaled, you will only be paid the amount the vehicle is currently worth and not the amount you actually owe. In most cases, the present value is less than the amount you owe your financial institution.
Full and full coverage are not the same
Comprehensive insurance has many holes, like your agency not covering your medical bills. This is where full coverage comes in. It includes comprehensive coverage, liability and collision.
Liability insurance is what you will need to cover your medical expenses should you be injured in an accident. Collision, on the other hand, occurs if you are in a car accident that you caused or if you have an accident in which no other vehicle was involved, such as hitting a lamp post because you were checking your phone.
Comprehensive insurance is the way to go if you can afford it. Simply talk to your insurance agent to discuss what’s in your policy and what’s not.
RELATED: Here’s why you should have comprehensive insurance on every car