When 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. They want to make sure that their investment is covered in the

event the vehicle gets damaged, totalled or stolen. They typically 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. This is called GAP, short for Guaranteed Auto Protection, and is

usually included in the leasing contract.

If your leasing company is called BMW Financial Services, Chrysler

Financial or any other finance division of an automaker, then chances are

your GAP insurance will 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.

Matthew Meyer
http://www.articlesbase.com/technology-articles/auto-insurance-and-leasing-88312.html

2 Responses to “Auto Insurance and Leasing”

  • Laura L says:

    What is a good place to get lease/loan auto insurance?
    I’m looking for a policy that includes lease/loan auto insurance or Gap insurance that will cover the charges for extra mileage, scratches, etc. when I turn in my car at the end of a lease. I’m with Geico currently and despite being told on the phone that I have that coverage, I’m now told that they don’t carry any such thing. I know I’m over mileage so this would really be helpful.

  • Sandy Q says:

    http://autoinsurance.maclenet.com – you can try this company. I personally have their car insurance. As I know they have special program for leased cars which provide the services from your request.
    References :

Leave a Reply