Getting a new car lease can be an exciting time. Finding the ideal car in your favorite color, adding extras like sun roofs, GPS and security devises, and negotiating a rate with the automobile dealer are all important aspects in receiving the car you want.
When it comes time to drive your new lease off the lot, you also have to consider lease car insurance. While regular car insurance can be thorough, lease car insurance is even stricter. An auto finance specialist or dealer will want to ensure that the car you are driving off the lot will be coming back in tip-top shape.
Here's what you need to know about lease car insurance:
Gap Insurance, also known as Guaranteed Auto Protection, is a type of insurance that will cover the balance left over between the amount a vehicle is worth and what you still owe on the vehicle. While Gap Insurance is not mandatory of most lease agreements, many dealership and auto insurance companies will highly suggest that you select this coverage for your lease car insurance.
Vehicles totaled by flood, fire, vandalism, tornado, theft or accident would be covered by Gap insurance. You can get Gap insurance coverage through your automobile dealership or though your primary auto insurance company.
The majority of auto lease companies will require you to maintain at least the minimum lease car insurance coverage:
* Liability coverage of $100,000 per person or $300,000 per occurrence
* Liability coverage ensures that any persons that are harmed in an accident you caused will have medical expenses covered
* Property liability coverage of $50,000
* Property liability coverage ensures that any property you damage in an accident will be covered
* Comprehensive and collision with no more than $500 deductible
Comprehensive and collision coverage ensures that your damage to your car, either from a collision with another vehicle or damage due to flood, vandalism or theft, will be covered
Check with your auto lease company as well as your primary auto insurance company to determine what insurance coverage best suits your needs. While the state you live in often mandates that you have specific auto insurance, most lease contracts require additional coverage on top of that.
Reduce Insurance Costs
Factors such as vehicle make and model, repair costs, claim history, driving record, driver age and probability of car theft also affect lease car insurance costs. Ask your car dealership to provide this information before making a purchase, but also do your research beforehand. Your auto insurance agent may be able to provide you with accurate quotes based on the above factors.
Other ways to reduce insurance costs include asking your auto agents for discounts related to leasing a car, inspecting any repairs done to your car, and bringing in your lease for regular maintenance checks based on your automobile warranty schedule.
Remember that in order to return a lease without paying extra, you must return the lease in a condition similar to what you first received. Making sure that you have the lease car insurance to repair any minor damages will ensure that you return your car in a healthy state.