Leasing a car requires a car lease insurance for your protection due to the many liabilities attached to it. You can choose from any of the following: basic liability insurance, collision insurance, theft insurance, comprehensive insurance, and gap insurance.
Leasing a car is different from buying because at the end of the lease term, you don't get to own the car. The car your leasing is under the ownership of the leasing company. So, an auto insurance for a lease car is required because the leasing company would want to make sure that their asset is being protected. This protects you from financial burden in the long run too. Here are five insurance types that you can choose from:
Basic liability insurance
This type of insurance makes it possible for your car to be considered as legal to be on the road. It covers for any damages caused by a driver to other vehicles.
This insurance pays for the damages sustained by the driver and the car due to a collision with other vehicles or objects such as a tree, a fence or wall.
A theft insurance is intended to shoulder expenses that may be incurred because of theft or vandalism. This also includes impound fees and other related expenses due to theft such as the repair of broken windows.
This type of coverage is an extensive one because it insures the car for incidents other than collision. Incidents such as flood, fire, strikes from animals, storms, hurricanes, vandalism and other forms of disasters that happen even when off the road.
This car insurance is an additional coverage that is in-charge of paying for the difference between what your other insurer pays should your car be considered as totaled and the amount you owe to a leasing company for the leased car. Generally, a car dealer would purchase a master policy from one car insurance company that would cover all of its leased cars. You car dealer would then charge you with a gap waiver. Should your car get totaled, then there is no need for you to pay the car dealer of the gap amount.
Leasing a car is good option, yet you need to comply with certain requirements. And, one of which is a car lease insurance. It does not only work as an advantage to your car dealer, but it is beneficial to you as well. So, be prepared at all times. Come up with a good choice of car insurance. To help you in having a good and sound judgment in choosing for this kind of insurance, be sure to ask for cheap auto insurance quotes from various insurance companies before purchasing any.