If you regularly get a new car at a cheap monthly payment, leasing rather than financing car may be a good option for you. There are many benefits to leasing a car, and although it's a great option for some, you still must undergo the hassle of finding the cheapest car insurance available. Here is some useful information to help you find insurance for your leased vehicle:
Be Knowledgeable about your Options
Some insurance companies, especially smaller ones, do not accept leased vehicles for coverage. If you are using a major insurance company, you will likely not have a problem. However, to make sure, it is necessary for you to contact your company and confirm coverage. Even if your agency covers leased vehicles, the rate can be completely different from that for a financed car. Searching around and comparing companies is the best way to find the cheapest car insurance available.
Understand Deductibles
Finally, it is possible that you will be required to pay a higher deductible for a leased vehicle. As long as you do not get into an accident, this is not a problem - the higher the deductible is, the lower your premium. This helps you to get the cheapest car insurance. Insurance companies require higher deductibles for leased vehicles because there is a greater risk to them when the car is damaged or stolen. These requirements should be in clearly defined in your policy.
Understand the Types of Coverage
Leased vehicles typically come with different car insurance coverage requirements than a financed vehicle would. It will be necessary for you to carry full coverage when leasing a car. Full coverage includes comprehensive and collision insurance. If your car is stolen or totaled, the car company is no longer able to lease it to future drivers. Therefore you are required to pay the company for future loss. Since you are required to have more coverage, your premium will be higher.
Research Coverage Limits
Not only will you need more coverage, but your insurance company might also require you to have higher coverage amounts for your leased vehicle. On average, leased vehicle coverage includes $100,000 per person liability coverage for bodily injury if you are at fault for an accident. If multiple people are injured, there may be a cap of $300,000. For property damage, you will probably be looking at coverage of $50,000 per accident.
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