Understanding the Difference in Insuring a Leased Car
Driving a leased car without auto insurance is like wishing for an accident to happen over another accident. In the event of a collision, you not only pay for damages to the other car involved in a crash, but also pay for damages to a vehicle you don't actually own. You could also face extra charges, depending on the lease terms and conditions.
Think about it. If leasing companies take it easy on such incidents, they won't have a business to run after a short time. They'd go bankrupt buying new vehicles to replace damaged ones. So, to the question do you need insurance for a leased car, the answer is yes.
The Difference Between Personal Auto Insurance and Insurance for a Leased Car
Registered …show more content…
Most auto dealers buy a master policy from car insurance companies for coverage on all leased vehicles. What you will be charged with is a gap waiver.
Car Insurance Group
Do you want cheap auto insurance for a leased vehicle? You should be mindful of the insurance group number that a car is assigned with. The number runs from 1 to 50, with 1 being the lowest and 50 the highest. It follows that the cost of insuring a leased car depends on a car's insurance group number. That is, 1 is cheapest to ensure, and 50 the most expensive to insure.
Additional driver on the policy
Adding an additional driver to the auto insurance policy will spread the risk, thus bringing the cost down. If the insurer sees that the additional driver is lower risk than you, the insurance premium will certainly drop.
Although there are differences between personal car insurance and cover for a leased vehicle, the tricks to lowering insurance premium is almost the same. The best deal can still be found by comparing several online motor insurance quotes, but don’t overlook leasing companies that operate via their own channels. It is also important to choose a parking location that is not a magnet for theft and vandalism to further bring the insurance cost
Driving a leased car without auto insurance is like wishing for an accident to happen over another accident. In the event of a collision, you not only pay for damages to the other car involved in a crash, but also pay for damages to a vehicle you don't actually own. You could also face extra charges, depending on the lease terms and conditions.
Think about it. If leasing companies take it easy on such incidents, they won't have a business to run after a short time. They'd go bankrupt buying new vehicles to replace damaged ones. So, to the question do you need insurance for a leased car, the answer is yes.
The Difference Between Personal Auto Insurance and Insurance for a Leased Car
Registered …show more content…
Most auto dealers buy a master policy from car insurance companies for coverage on all leased vehicles. What you will be charged with is a gap waiver.
Car Insurance Group
Do you want cheap auto insurance for a leased vehicle? You should be mindful of the insurance group number that a car is assigned with. The number runs from 1 to 50, with 1 being the lowest and 50 the highest. It follows that the cost of insuring a leased car depends on a car's insurance group number. That is, 1 is cheapest to ensure, and 50 the most expensive to insure.
Additional driver on the policy
Adding an additional driver to the auto insurance policy will spread the risk, thus bringing the cost down. If the insurer sees that the additional driver is lower risk than you, the insurance premium will certainly drop.
Although there are differences between personal car insurance and cover for a leased vehicle, the tricks to lowering insurance premium is almost the same. The best deal can still be found by comparing several online motor insurance quotes, but don’t overlook leasing companies that operate via their own channels. It is also important to choose a parking location that is not a magnet for theft and vandalism to further bring the insurance cost