If you’ve decided to lease a car, you will still need to make sure that you obtain auto insurance. In fact, people obtaining financing from a bank or from an auto dealership lender will need to obtain specific auto insurance in order to make sure that the car is fully protected from certain kinds of damage.
When you lease a car, your lender will require you to obtain both collision coverage and comprehensive coverage. You may also be required to obtain GAP coverage.
- Collision coverage is the auto policy that will pay for expenses if your car is damaged specifically as a result of a collision.
- Comprehensive auto coverage covers most other types of damage, including things like vandalism, fires and weather-related damage.
- Many leasing companies require that drivers take out GAP coverage. When you get into an accident, your regular coverage usually will cover expenses based on the value of the car at the time of the accident, not the amount that you paid for the car. GAP coverage will help pay for the difference between the value of the car at the time of the accident and the value of the car when you bought it.
Contact Dean Davis Insurance in Austin Texas for more information about the type of coverage necessary when leasing a car.More