Do I need special coverage for my leased car?

It’s not out of the ordinary for leasing agents to require special coverage for leased vehicles. Such coverage is designed to protect you and your leasing company from damages and/or losses that could occur for the duration of the lease.

Without special coverage, you may find yourself on the hook for thousands of dollars if you’re involved in the accident that results in expensive repairs or a total loss of the vehicle.

If you decide to lease a car, you may be required by your leasing agreement to have the following auto insurance coverage in addition to the state-mandated liability limits:

  • Comprehensive – Covers damage and/or losses caused by fire, theft, vandalism and other incidents other than a car accident. For example, if your car is damaged in a tornado or hurricane, comprehensive insurance will cover the cost of repairing the damage or, if necessary, replacement of the vehicle. This coverage is usually paired with collision insurance.
  • Collision – Covers damage and/or losses if your car is damaged or destroyed an accident. Whereas liability coverage does not cover damage to your property, collision coverage will cover the costs of repair or replacement of your vehicle after the deductible is paid.
  • GAP Insurance – In the event of a total loss, this coverage bridges the gap between the value of the vehicle and what you owe on your loan or lease. For example, if you owe $15,000 on your loan and the value of the car is $12,000, GAP coverage will take care of the remaining $3,000.

In addition to the above coverage, you can work with your independent agency to add additional coverage to your policy that will provide you with even more protection in case the unthinkable happens. We can also help you find the best coverage for your money by comparing insurance quotes online from multiple carriers. As a responsible driver, it falls on you to purchase the right types of coverage for your specific need.

What to Do After an Accident

A car accident can be a difficult situation no matter how minor. The important thing to remember is that car accidents happen all the time, and your safety is the highest concern after an accident occurs. Worry about caring for yourself first, and then you can determine how to care for the car and sort out the situation with your insurance company. Since car accidents can often leave you disoriented and in shock, it’s important to prepare beforehand to know what to do after a car accident. The following steps should all be taken directly after an auto accident occurs:

1. Analyze the Damage to the Car and Personal Injuries

While remaining as calm as possible, analyze the vehicle for any new damages that occurred as a result of the auto accident. Major injuries will most likely manifest themselves right away, but you should always be sure to check for minor injuries on your person as well. These injuries might include bumps, scratches, bruises and mild pain in any area of the body. If it’s possible, try to document these damages and injuries with a cell phone camera, digital camera or any other recording device you may have on you.

2. File a Report

Call your local police station (or just dial 911 if you don’t have the number on hand) and file a report for the accident to ensure it is properly recorded. Limit the conversation to general details and avoid talking about fault or liability of any parties involved until you discuss the auto accident with your insurance agent first. Be sure to call your insurance agent right after you call the police to file your claim as quickly as possible.

3. Limit Your Discussion of the Auto Accident

An exciting event like an auto accident may be tempting to talk about with all your friends or post on Twitter, but the most practical thing to do after the accident is to only discuss the information with the police and your insurance agent. This ensures that nothing you say in a shocked state of mind will be used against you and possibly limit the amount of insurance you are qualified for. Bringing others into the situation not only exacerbates it, but this will also confuse you in terms of what really happened.

How will an accident or claim affect my coverage/monthly premium?

If you have been in a car accident recently and you are waiting to find out what type of impact it will have on your insurance policy coverage, it can certainly be a nerve wracking time. Fortunately, the impact of an accident upon your monthly premium is often not nearly as bad as one might imagine. The best course of action is always to have a frank and honest discussion with your auto insurance provider, so that you can get the specifics about your policy and your situation.

However, even though you can’t find out exactly the degree of impact on your premium just by searching online, you can get a good idea of how your claim or accident could affect your policy even prior to speaking with your insurance agent. Here are some of the basics on how an insurance policy is generally impacted by an accident or a claim.

The Percentage Raise in Your Premiums

Most of the time you will see a small specified percentage raise in your monthly premium following an auto accident that resulted in a claim. Although this is standard for any accident which was caused by you or mainly caused by you, it will not apply in cases where another driver was at fault. In cases where there is a small amount of contributory negligence, it may not affect your policy premiums either. Contributory negligence essentially means that you have contributed to the accident circumstances in some way — but nearly all accidents are alleged to have some degree of contributory negligence, so you need not worry about a premium raise if the other driver was almost totally at fault. The percentage rate can really vary quite widely between insurance providers, so it very helpful to discuss such specifics with your agent. An average percentage for a first at fault accident violation is a 10 percent raise in liability, comprehensive, and collision coverage types.

Keeping Your Coverage

You won’t need to worry about losing your insurance coverage unless you have multiple at fault at fault accidents in a relatively short period. Your insurance provider will always be there to let you know if a situation like this is developing.

Do I Need More Liability Coverage?

Do I Need More Liability Coverage?Contrary to popular belief, you actually can purchase too much insurance. However, the amount of liability coverage that you need depends on several different factors that vary from driver to driver. All states have a minimum legal requirement that designates a limit for coverage per person and per accident. For example, a bodily injury coverage plan that is worth $150,000/ $450,000 means that each person involved in the accident could be compensated up to $150,000, but only $450,000 could be provided for just the one accident.

Although the standard liability coverage plans offered are usually pretty substantial, your own coverage amount should depend partially on the amount of assets you have to protect. For example, if you make $30,000 per year, rent an apartment, and have little savings in the bank, you will probably be best suited with a $50,000/ $100,000 plan. Alternatively, if you make $100,000 per year, are the owner of a house worth $200,000, and have $50,000 in savings, you should consider getting substantial coverage to protect your assets. It is recommended that you purchase at least $100,000/ $300,000 to ensure this protection.

One good tip when purchasing liability insurance is to forego personal injury protection, since these costs will usually be covered by your health, life, and disability insurance. In terms of property damage, some states require minimums as low as $5,000. Although this may appeal to your budget now, it likely won’t cover the full cost of getting into a car accident with a BMW. As a general rule, you should shoot for a minimum of $50,000 worth of coverage for each vehicle you own.

Collision coverage will pay for the full cost of repairs or replacement if your car is involved in an auto accident. Comprehensive coverage will cover damages caused by natural disasters, vandalism, or theft. In both cases, you will want to shoot for the highest deductible your can afford– preferably $1,000– to reduce your policy costs. Although this coverage option is important for newer, more expensive vehicles, you may be able to opt out of it completely if you have an older car that would be cheaper just to replace in the event of an accident.

Save Dollars by Reducing Premium

Save dollar by Reducing PremiumIf you are owning a car in Kansas, then Kansas car insurance is a must in today’s life style. At the time of disaster, you can secure your car and avoid yourself by getting burdened from financial losses. Car is very useful and can be used in many ways. It can be used for domestic use, road trips and business. As accidents are unpredictable, you should always be prepared for the worst. Due to the consequences of car accident, you may have to suffer for years. The impact of accidents are not only the insurance rates, property, driving record but it also affects you mentally and physically and also financially.

  • Gender and age plays a vital role while paying your insurance premium. Especially, male drivers whose age is less than 25 years will pay more for the car insurance when compared to female drivers. But as they get old and gain good experience in driving, their car insurance rates will reduce but many other factors will come into picture that time.
  • Many insurance companies consider the driver’s credit rating and also check their driving record to see whether they have got any points on their license.
  • To keep your car insurance premiums low,maintain your car insurance payments in such a way that there are no lapses. If you are caught for driving without car insurance, then you will have to pay penalties for it and also your license will be suspended. This will finally affect your insurance premiums.
  • Insurance companies will also look into factors such as whether your car is newly purchased or is it very old, whether you stay in a area which is prone to theft. All these factors affect your premium finally.

Getting Detailed on The Accident Report

Details on the Accident Report.When you file a complaint to the police after an accident, you need to remember few important things. You can get accurate information about who is at fault and who should be financially responsible for the accident through accident report. Accident report becomes the important tool to judge who is at fault. If you want a speedy claim then you need to provide detailed information about the accident and also provide accurate police reports. These information can make your claim process smooth and quick.

To Remember!

Few things to remember to make a claim while filing the police report after an accident:

See to that you file a complaint regardless of how small the accident seems: File an accident report if there is a minor damage to your car or to you. Because at the time of accident you may not be aware of the physical and medical damages that has happened to you.

Be honest and give detail information to the police officer: Never lie to a police officer while filing the accident report. This will not only delay your claim process but may also land you in jail. If any damage has happened tell the truth, rest your car insurance company will handle it. One thing to remember is no one can be a perfect driver, even the most experienced makes mistakes.

You can avoid an insurance claim and file a police report: In some situations, after an accident both parties would agree to handle their financial issues mutually with out contacting their car insurance companies. If both the parties have decided for the agreement that you would receive the payment from the other person who is involved in the accident or you give the third party a payment rather than going to your car insurance company for handling the claim, you need to still file an accident report to the police. You may not know what the other person who is involved in the car accident might decide or do later. With the help of police report you will have legally documented information about what had happened in case something happens after the car accident.