With the number of attractive offers to lease a vehicle rather than to purchase it outright, many more are considering leasing a vehicle than ever before. But if you’ve never leased a vehicle in the past, questions may arise regarding insurance coverage for it. Here, we will attempt to make the subject a bit clearer.
First, regardless of whether you purchase the car outright or opt for a lease, you will have to purchase both comprehensive and collision insurance for the vehicle. Collision insurance covers you in the event of a collision with another motor vehicle or object while comprehensive covers other types of damages, such as theft, fire, vandalism or other mishaps not involving another vehicle.
Many times, the leasing company may also require you to purchase “gap” insurance, which essentially fills the gap between what the insurance company pays in the event of a total loss and the amount that you still owe on the vehicle. However, other leasing companies purchase a blanket policy for all the leased vehicles they have on the road and charge each customer a “gap waiver”. In short, the coverage is already added into the monthly payment amounts.
To learn more about the types of coverage you may need for the vehicle you’re about to lease, or to ask questions regarding “gap” insurance, the friendly and experienced professionals at the Mike Leonard Insurance Agency will be happy to assist you; contact them today.