Car Insurance When Leasing a Vehicle

Car dealerships typically require the insurance on a leased car to be at least double the minimum insurance required by law, and they may insist that you carry optional coverage. The key point about a leased car is that it does not belong to you and never will. The company that owns the car wants to protect the vehicle value and make sure that your liability coverage will be sufficient to prevent the leasing agent from being named as a party.

General Auto Protection, known as GAP insurance, is not included in typical leasing car leasing insurance but it is still worth considering. If the car is involved in an accident and totaled out, or it is stolen, GAP insurance will pay the difference between what your collision insurance covers and the actual value of the car, which can be a substantial amount. Without GAP coverage, you can be held responsible for the outstanding balance.

Use online insurance quotes to compare different insurance companies and the policies they offer. Look for the most complete combination of auto insurance options at the lowest price. Be sure to include ample collision and comprehensive coverage to protect yourself against hit and run drivers, vandals or other malicious behavior. By comparing coverage and online quotes, you can narrow down the choices of suitable insurance companies from a single location, and that saves you time.

In many ways, a leased vehicle is like a rental car. You have complete possession of the vehicle, and total responsibility for any damages or incidents involving the car. If you are not purchasing more than $100,000 in personal injury liability coverage, it might be a good idea to pick up an umbrella policy that covers you for a wide range of possible liability claims. It is essential that you have sufficient insurance company when you drive a leased car because there is a lot at stake and you can be held responsible for almost anything that happens.

Posted in Car Insurance.