Leasing a vehicle is a great financial option. Make sure your auto insurance matches this.
Leasing a car is a convenient way to get a relatively new car on a lower budget. However, that doesn’t mean that you can skimp on auto insurance. Any motorist who leases a car through an auto dealer or a bank will know that they will be required to get car insurance. As the leasing company technically owns the vehicle, they want to protect the vehicle in case you’re in an accident or if that car is stolen.
Before you purchase car insurance for your leased vehicle, here’s what you need to know.
Collision and comprehensive insurance may be required: Collision coverage covers the damage to the car caused by an accident with another vehicle or object. Comprehensive covers a loss that is caused by something other than a collision with another vehicle or object – such as a fire, theft, or collision with an animal.
Your limits may be higher: Leasing companies often require high liability insurance limits with a lower deductible. This means that you may be paying more per month, but you won’t have to dig into your pockets too much should you file a claim.
Gap insurance is reliable coverage: This insurance provides extra protection in addition to your basic car insurance for a leased vehicle. If your leased car is stolen or totaled in an accident, the coverage will step in to fill in the gap between the lease amount still due on the vehicle and what your insurance company would pay for a claim.
Saving is well within reach: There are still ways to save on your auto insurance! Your insurer may give you discounts for insuring multiple cars, bundling your auto with your homeowners insurance, or if your vehicle comes equipped with safety and anti-theft devices. Always ask your agent if you’re eligible for discounts, even on leased vehicles.
For help finding the right auto insurance in Connecticut, and the surrounding cities, contact the independent insurance professionals at North American Underwriters. Serving all of Connecticut, we will work with you to ensure you have the right amount of protection for your specific situation, all at the right price.
