Many choose to lease over buying a car because they want to always drive a brand new model without the hassles of resale, mileage, and costly repairs. Naturally, they’re looking for ways other than the warranty to protect their vehicle, and that’s where insurance policies come into play.
If you’re also wondering what car leasing insurance is and how it works, continue reading this quick and easy guide.
What’s Car Leasing Insurance
The leasing contract doesn’t include any standard insurance plan for the car. You are responsible for purchasing an insurance policy for the vehicle. You may need to buy a comprehensive policy to get coverage for the leased vehicle.
Generally, the insurance provider will cover maintenance and servicing, accident management, road tax, and help you with any breakdowns. Also, a key benefit of car leasing insurance is the total loss shortfall protection. Why? Because if the car is totaled in an accident, your insurance provider will cover you.
How Can I Obtain Car Leasing Insurance
You need to remember that the registered owner of the car is the leasing company, not you. Hence, you must inform the owner you plan on getting car leasing insurance. If you don’t, the insurance provider might put your name down as the owner and later correct the contract, only delaying the service. It’s best to insure your vehicle from day one until the day you return it to the leasing company.
How Much Does it Cost
Some folks think car leasing insurance costs way more than a standard policy because you’re essentially getting comprehensive coverage. That’s not necessarily the case because it can be far cheaper than a third-party insurance policy. Of course, the make and model play a significant role here because luxury cars usually cost more to insure. Also, your driving record, credit score, insurance policy, and other factors can affect insurance costs.
How Can I Get Lower Premiums
Everyone knows that car insurance premiums are expensive, and most folks resent paying that much on a policy. However, a few tips can go a long way in helping you save considerably on premiums:
1. Generally, the more valuable a car is, the higher its insurance premium will be. However, that’s not always true because some insurance providers charge a hefty premium but don't provide as much value or put loopholes in their policies. Also, some providers charge low premiums but lack the quality and protection that you sorely need. Hence, it’s better to shop around for a provider that gives real value for your money.
2. While it may seem counterintuitive, putting an additional driver on the policy can lower costs. Another driver will help spread the risk from the insurance provider’s perspective, especially if they pose a lower risk, which will reduce the price. Factors such as age, driving experience, and job determine potential driver’s risk.
3. Comparison sites are a great way to quickly scan coverage options and compare fees, but not all car leasing insurance providers are listed there. Many reliable insurance providers use their own channels, and you may miss out on a great deal if you stick only to those sites. Therefore, be sure to check out the provider’s website to acquire a deeper insight into their coverage and quotes.
It’s always a joy when you get to drive around in a brand new leased car. However, driving always carries risks such as accidents or breakdowns which can be exacerbated if not covered under warranty. That explains why many look for reliable car leasing insurance policies these days. The key to selecting the optimal insurance provider is to balance the cost and the coverage. You need to purchase a policy that’ll provide comprehensive protection as well as an affordable fee. Fortunately, that’s exactly how Lycainsure protects its clients, allowing them to enjoy driving with peace of mind.