Instead of buying a new car with a bank loan, you rent or lease the car for 3 or more years then give it back to the leasing company at the end, with a residual value of about 50% of when the car was new. Auto leasing is a way to drive more car than you can afford and change cars every 3 years without hassles or trading in. If you understand all the terms according to the lease agreement, and ask questions, you will be poised to negotiate a value added lease. But overlook one detail or forget to check their math, you’ll lose your shirt and your car insurance could sky-rocket.
Contact Your Auto Insurance Company and Ask Questions
Leasing a vehicle is a lot different than financing a vehicle and it is recommended, before committing to leasing a vehicle that the policy holder gather enough information, to know if this is the right decision for you and your family.
- Call And speak to your insurance Representative about leasing and insurance rates.
- Search the internet. There are several websites that can guide you to the correct information.
- Search local insurance companies by zip code.
What A Car Insurance Company May Require For Leased Vehicles
- $100,000 per person bodily injury liability coverage which pays for others injuries as a result of an at-fault automobile accident.
- $300,000 total bodily injury liability coverage if multiple injured persons. This is the limit of money that the auto insurance company would pay out for others injuries caused by the insured.
- $50,000 property damage liability. This coverage pays for damages caused to any property including, but not limited to vehicles, a fence, a light post, etc. The limit is on a “per accident” basis.
- Physical Damage coverage covers damages caused to the leased vehicle itself. Physical damage coverage is broken down into two sections, “Comprehensive” which covers damages to the vehicle caused by anything other than an actual car accident and “Collision” covers damages related directly to an accident.
Know The Fact About Car Insurance For Leased Vehicles
- Physical damage coverage comes with “Deductibles” which are what an insured would be held responsible to pay toward vehicle repairs. Deductibles can be different for comprehensive and collision coverage but are usually the same.
- The high limits of liability as shown above are generally shown on a policy as 100/300/50. The digits represent the amount of insurance coverage in thousands.
- Aside from higher liability coverage requirements, leased vehicles usually require that one obtains a maximum comprehensive and collision deductible of $500; although, there are exceptions with few leasing companies.
- Most lease agreements show the exact insurance requirements on the reverse side under “agreement to furnish insurance”. There you can see the exact limits of liability and deductible requirements. Keep in mind, there are benefits to purchasing this higher coverage for your vehicles. In case of an accident, you can have the satisfaction of knowing that your coverage will be more sufficient.
Cheaper Car Insurance Quotes For New and Leased Autos
If you decide to lease a car, make sure you still have the right amount of car insurance to financially protect it. Always ask questions and research before committing to 1 insurance company and finding car insurance for a leased vehicle should be simple and affordable. Check out the top of the page and get free quotes now for Cheaper Car Insurance for all Cities in America.