Agents who sell auto insurance offer both collision and comprehensive types of coverage. While collision is fine if you own your vehicle, it may not be sufficient if you put a lien on it. The agents of AFI Insurance offer Denver, CO residents advice on what type of insurance is best for them. If they choose to take out a loan and use your vehicle as collateral, you may need to upgrade your policy.
Protecting Their Investment
When you put a lien on your vehicle, the lien holder will want to protect their investment. This usually means that they will request an update to your policy that switches it from collision to comprehensive coverage. Comprehensive coverage will cover the cost of the vehicle if it is totaled during an accident.
Buy Yourself or Allow Them to Add it to the Loan
Depending on where you get your loan, the lender may put the cost of the comprehensive cover as part of your policy. This ensures the coverage will never lapse and that the premiums are paid on time every month. In some cases, the bank may be able to get the policy at a lower cost.
In Denver, CO, residents who put their car up for collateral on a small loan will need to talk to the agents at AFI Insurance to find out what they need to do with their insurance policy. Speaking to an agent will ensure that you have the type of coverage you need in place at all times. Visit the office and talk to an agent so your vehicle is fully covered.