If you have decided to lease a car instead of buying one, you need to consider the type of insurance you are going to get. You must keep a few factors in mind because leasing a car is different from owning one. Before you select an insurance policy, review your lease agreement to see what type of insurance your lessor requires.
Don’t overlook this step because driving a leased car without insurance can prompt your lessor to repossess your vehicle. You could also face time in jail and lose your license if you don’t properly insure your leased vehicle, and you don’t want to fall into that trap. In this post, you will learn about liability, collision, comprehensive, and gap coverage. You will also discover what coverage options make the most sense for you and your long-term goals.
At a minimum, you must have liability coverage for your leased vehicle. If you are found responsible for an accident, liability coverage pays for the other person’s medical bills, lost wages, and other related expenses. The right liability coverage should also cover the other driver’s vehicle and property damage. Your lease company will want you to at least have liability coverage before letting you drive off the lot, but the law also requires you to have liability coverage.
Keep in mind that liability coverage does not cover the damage to your vehicle if you are at fault for an accident. Since Atlanta is an at-fault state, the person responsible for the accident must cover all bills and expenses related to the accident. You will have to cover your own vehicle repair fees if you are at fault and only have liability coverage, which is something to keep in mind moving forward.
Finding a lessor who accepts only liability coverage is rare. But you could discover lessors who accept collision coverage so that the insurance company covers the vehicle after an accident no matter who is at fault. If you can afford collision coverage instead of only getting liability coverage, it’s a smart option no matter what your lessor requires. Check the terms of your policy before agreeing to anything because you want to know the amount your insurance company will cover, but you also need to know if your insurance plan includes car rentals and roadside assistance.
While you might find some lessors who accept collision coverage, most want you to have comprehensive coverage. Comprehensive coverage ensures that the insurance company covers any damage to the vehicle no matter the cause. Most policies cover theft, vandalism and falling objects, but they are also likely to cover fires and damage from wild animals.
All vehicles lose around 10 percent of their value after you drive them off the lot, and this is something to keep in mind when choosing an insurance plan for your leased car. If your car or truck is totaled, the insurance company pays for what the vehicle is worth at the time of the accident.
You could owe more than your car is worth since vehicles lose value over time. Most lessors require you to have gap insurance to cover the full cost of the vehicle after an accident. Even if your lessor does not require you to have gap coverage, it’s a good idea because it could save you a lot of money.
Getting Started With Velox Insurance
If you are leasing a vehicle and want to make sure you have the right coverage, the team at Velox Insurance is ready to point you in the right direction. We work with you so that you can find an insurance plan that makes the most sense for your needs and situation. Contact us today to begin.