Auto Insurance and Leasing

Auto Insurance and Leasing

Auto insurance and leasing a car, it’s easier to stick with the same company for your auto insurance. What you don’t know, however, is that you may end up paying too much for your coverage and it’s better to look elsewhere for lower rates.

When you lease the vehicle that you will drive belongs to the leasing company. The leasing company wants to make sure their investment is covered if damaged, totaled or stolen. They want to get covered for the difference between what your auto-insurer pays. And your outstanding leasing obligations at the time of the accident or damage. Its called GAP auto insurance. Known as Guaranteed Auto Protection. It is usually included in the leasing contract.

GAP Auto Insurance by the same leasing company

If the leasing company is called BMW Financial Services, Chrysler Financial. Your GAP insurance should be offered by the same lease company.

You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you could get the same coverage for a lower price?

Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for and adjust your coverage accordingly.

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HeidiAnnVirstal Recent comment authors
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Virstal
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Virstal

Some useful information here, thank you.

When joining a insurance company make sure to read their terms and conditions very carefully because the cheaper the insurance usually means higher premiums, especially if you don’t have comprehensive cover. So every time you have an accident or make a claim the premiums increase drastically. Therefore it’s not a wise decision to always go for the cheapest insurance options but to compare a few companies and check which would be the best and most affordable choice for your current vehicle.

Ann
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Ann

I did not know this fact before. Specially that “GAP auto insurance” that you mentioned here Thank you for the information. 🙂

Heidi
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Heidi

Exactly. The companies are overcharging the customers. If you have the same leasing company then get ready to pay more for insurance.
Thank you for writing on it and bringing it up.

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