Another misconception about insurance coverage is that, people think that your insurance will cover you if your car is stolen, vandalized or damaged by a falling tree, limbs., hail, flood, fire things like that. Now this is only true, if you opt for comprehensive and collision coverage along with your standard policy. If your car is worth less than $1,000 or is less than 10 times the insurance premium, purchasing these coverages may not be cost effective. But you do need to have collision and comprehensive coverage to fully protect your vehicle from all types of damage.