There are several advantages of leasing a car. Instead of paying the full purchase price of a new vehicle, you can pay a lower amount for the period of the lease which is typically three years. When you lease, you do not have to get a loan. You can switch cars every three years and lease cars you would not normally be able to affordable. Even if you lease, you are still required to have insurance. Use the following information to get cheap auto insurance when you lease.
Know Your Insurance Options
If you currently have an insurance agent, contact him to make sure coverage on leased vehicles is acceptable. This should not be an issue if you use one of the major insurance companies. However, insurance rates can be substantially different than rates for a financed car. It is always recommended you get free online quotes from leading insurance providers to check alternative insurance policies.
Types of Coverage
You will be required to have full coverage on a leased vehicle. This includes collision and comprehensive insurance. The challenge with a leased vehicle is that you have to be prepared to pay the leasing company for future losses. If the car is totaled or stolen, they are not able to lease it to another driver after your lease is up. The more coverage you are required to have, the higher your rates will be.
Monetary Value of Coverage
It is possible that your insurance company will require higher coverage amounts on leased vehicles. A typical insurance policy for a leased car includes $100,000 per person liability coverage for bodily injury if you cause an accident. You may be capped at $300,000 if multiple individuals are injured. Liability for property damage may be around $50,000 per accident.
You may be required to pay higher deductibles for leased vehicles which can help you get cheap auto insurance. Deductible requirements should be clearly stated in your insurance company’s guidelines. The reason for increased deductibles is because of the greater risk posed to the insurance company if the vehicle is damaged or stolen.