What Kind of Auto Insurance Do I Need If I Lease a Car?

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There are certain kinds of insurance plans that are much more difficult to understand than your typical policy; one type comes into play when leasing a car. The majority of companies that lease out vehicles will require you to have comprehensive and collision coverage. Carrying both these doesn’t come cheap. Unfortunately, the majority of people are already paying too much money for insurance and that doesn’t always cover additional expenses. So how does insurance on car leases work?

When a car is leased it does not belong to the buyer – it is still property of the leasing company (the car dealer). The dealer where the automobile is purchased is going to want to make sure that they are covered in case the customer has an accident or in case the vehicle is stolen.

In any leasing situation insurance is extremely important and safe for both parties. There are some people who try to get by with the bare minimum in terms of coverage. This can put a lot at stake. Accidents happen all the time and they are often completely out of our control since we share the road with many different types of drivers. There are people out there who are not afraid to spend time building a lawsuit if they could benefit from the reward money. Fortunately, there are ways to cut down on insurance costs and ways to make sure that you are not the victim of an accident or exposed to high liability in case of an accident.

The majority of people are unaware that they are paying too much money for their auto policy. It’s easy to stick with what you know and lenders are aware that if they take care of their customers the same customers will not mind paying more for coverage (even when rates fluctuate). Oftentimes the rates hike up and the customer stays because they are comfortable with the service and policy terms. This is why it is important to choose your insurance company carefully. Mattis Insurance is known in the Highway 6 North community for providing accurate quotes and competitive affordable insurance rates.

Don’t be Afraid to Invest in Protection

If you are already leasing a vehicle or if you plan on doing so it’s a great idea to start reading up on insurance requirements. Don’t be afraid of the sticker shock if the upfront price is more than you are seeing compared to other insurance companies. Always ask questions and see whether or not the lender offers special discounts that they can apply to your account. They are not going to provide you with these discounts right off the bat or tell you about them; customers have to ask in order to receive them.

Auto insurance and home protection are two of the most important types of coverage plans to have. Many companies have different types of discounts especially if you are a good driver with a clean driving record. Your credit score, the number of policies you have with one insurance company (home and auto combined discount is common) can also positively or negatively affect your rate. The driver’s age or the type of vehicle that they drive also comes in to play. Older automobiles are less likely to receive the coverage that new cars offer. Younger drivers are typically more expensive.

Keep in mind that the final premium cost is the amount that matters most with your insurance company. Finding a plan that is extremely cheap does not mean that it is going to protect you in the case of an accident. Auto insurance lenders are all very different from one another. They often change the rates that they offer as well which is why there isn’t just one company that is better than any others. They are in constant competition with one another and that is why the rates fluctuate so often.

The best thing for you to do is identify with how much you will be driving. Then figure out if our your vehicle is at risk of repair, or if do you drive a lot of your miles commuting from home to work on a daily basis. All of these factors come into play with your insurance coverage when you are leasing a vehicle. Leasing cars can be a bit trickier than buying the car outright. With the proper insurance policy from Mattis Insurance Agency, you save money and rest easy knowing you are covered if anything happens to you, the vehicle, other drivers on the road in the unfortunate event of an accident. Call Mattis Insurance and get insured today.

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