In America, leasing vehicles is more popular than ever. If you are considering leasing a vehicle you might be curious about how it will affect your auto insurance rates.
In general, drivers leasing a vehicle pay more for their insurance than drivers who own their vehicle.
Here’s what you need to know about insuring a leased vehicle.
Insurance for Leased Vehicles
Insurance for leased vehicles is more expensive because they require more coverage than a car you own.
Additionally, leasing companies require drivers to carry policies with higher than average coverage limits.
While you might assume that the cost of this increased insurance coverage is included in your lease payments, this is not the case.
While your payments might offer some gap insurance, this coverage is extremely limited and won’t do much if you file a claim.
Cost of Insurance
It’s difficult to estimate insurance costs because they are based on a series of individual factors. Your driving record, leasing history, credit rating, type of car, leasing company’s requirements, and so on will all affect your auto insurance rates.
Have a conversation with your leasing company about their insurance requirements. Following that conversation get insurance quotes.
Do you have additional questions regarding your auto insurance? Turn to the experts at John Scott Insurance for assistance today. We are eager to get you the insurance coverage that you need today.