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Lease Insurance

Lease insurance is required to have if you are currently leasing a vehicle. Additionally, the lease you agreed to likely requires that you purchase more than the minimum amount of coverage required by the government. This additional amount is often required because the company that provided the lease doesn't want to be stuck with a bill if you total the vehicle while leasing it.

However, just because you are required to be insured more than other car owners, doesn't mean you have to pay a lot of extra money for male or female car insurance. Rather, you can find affordable rates online for your leased car and any other autos you own. Here are a few tips on finding rates online as well as how you can make the most of the policy you purchase.

Know Your Terms

The most important factor determining the quality of lease insurance you find is knowing the terms of the leased vehicle. If you purchase a policy that doesn't meet the minimum requirements of the contract you signed, then it doesn't matter how excellent the lease insurance plan is, because it won't meet your needs. Therefore, before even beginning the search for a provider after leasing a vehicle, you should review the terms of your lease contract.

This includes knowing the specific coverage you are required to have and double checking on any terms that you don't completely understand. It is far better to get answers to any questions you have before searching for coverage to avoid future confusions. By double checking on the coverage amount you are required to have, then you will be able to quickly specify your needs in the vehicle insurance quotes when you begin the search.

Finding Rates Online

The easiest way to find low cost, quality lease insurance for your car is to use the Internet. Before the convenience of online searches, you had to contact each provider individually to request auto insurance quotes and then wait for their decision on the rates they would offer. However, times have changed and you can now request one day car insurance or longer quotes from several top companies at one time and have responses very quickly.

Once you receive the requested rates, you will need to set aside some time to compare car insurance quotes and determine which offer most closely matches your needs. Comparing lease insurance offers includes, among other things, looking at the premium amounts, comparing deductibles, and making sure that each offer includes the coverage you requested. You want to evaluate all of these items instead of simply making a decision based on premium amounts because these things combined are what comprise the true value of a policy.

For example, if one quote offers a low premium but carries an extremely high deductible amount, you will need to determine if you can afford to pay the deductible if you are involved in an accident or if you should choose another option. The most important thing is that you find a policy at a low cost that still offers the insurance you need.

When you are considering which lease insurance policy to choose, you should also consider purchasing gap coverage as an added safeguard for the leased auto. Gap insurance basically means that, if the car is totaled, this plan will cover the additional amount you owe on the lease that is above the actual cash value of the auto.

These plans are very beneficial for people in your situation because you may owe more on the car than it is worth, especially if you just leased it, because of the way autos depreciate. If you then totaled the car without having gap coverage, you wouldn't have any coverage on the additional amount you owe on the lease because the regular insurance premium would only cover the cash value of the vehicle.

Gap plans are also beneficial for drivers who purchase instead of lease a vehicle but still take out a loan because, if they total the car after just purchasing it, they will still owe additional money to the lender while having to buy another auto. For example, if the driver still owed $30,000 on the loan, but the provider determined the auto was only worth $25,000, then the driver would still have to repay the leftover $5,000 to the lender.

Maximizing Policy Benefits

Hopefully by purchasing lease insurance online, you will save more money than using other options. Once you purchase a lease insurance policy, you should become familiar with the claim filing process so you will know what do to if you are ever involved in an accident. You may also want to consider paying the premium in full each time it is up for renewal. Many drivers pay the premiums in full because their lease insurance provider offers a discount for doing this instead of making monthly payments.


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