Several types of Denver insurance car policies are available to protect your investment in a new vehicle. If you are a recent purchaser of a brand-new auto, you should fully understand the distinctions and variations that car insurance policies commonly feature. Quite often, motorists think that all car insurance is basically alike. Nothing is further from the truth, however. Different policies serve very different purposes. You must select coverage from a carrier that offers a policy that best suits your specific needs. Otherwise, you could easily wind up with nothing but a lawsuit and piles of bills with nothing to show for it – except a totaled automobile!
The primary type of auto-related loss protection in existence is liability coverage. As its name implies, this type of Denver insurance car policy protects you against liability for third-party damages in event of your at-fault involvement in an accident or collision. Repairing or replacing the home or vehicle of another person who has suffered major loss or destruction due to your negligence can be financially devastating. Moreover, state law requires you to have minimum levels of this coverage to protect others against your malfeasance. If the situation were reversed, you would want someone who caused you such damage to have adequate means of reimbursement available.
Another form of Denver insurance car coverage that you must consider is a collision policy. Also known as “comprehensive” coverage, this type of insurance protects you from losses due to physical damage or destruction of your vehicle itself. Collision/comprehensive coverage pays for all repair or replacement costs, even if you were at fault in an accident. If the insurer determines that damage is so severe that its repair would exceed your car’s replacement value, it will disperse sufficient funds to cover another vehicle purchase. The amount of this award will be limited to the value of your current auto at the time of the accident.
Seriously consider buying full comprehensive and collision coverage for any new vehicle. In addition to damages that result from actual traffic collisions, this type of policy covers many forms of indirect occurrences. If, for instance, your GPS system or Dolby surround sound stereo is stolen while your car is parked alongside a curb overnight, you will be reimbursed. Not only the stolen items are covered, but the shattered window glass and concurrent dash damage inflicted by the culprit are also covered.
The last category of Denver insurance car owners should be aware of is bodily injury (“BI”) coverage. BI policies cover accident-related medical expenses. Motorists with existing health insurance may not require this insurance. If you do not have a current health insurance policy, it is definitely worthwhile. Quality BI coverage will also pay for medical expenses incurred by passengers, pedestrians, or other such parties who sustain bodily injuries that are your fault.