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.

Price versus Coverage When Buying an Auto Insurance Policy

When you’re spending money for auto insurance, you want to strike a good balance between price and coverage. It’s not a good idea to buy the cheapest thing you can find, but it’s also not necessary to always choose the option with the highest cost. There are many options that can help you find some middle ground. Of course, you’ll want to err on the side of caution when it comes to your coverage because you can’t afford not to do so. Find out what your current insurance policy offers you, and break down your coverage for each auto if you have more than one vehicle. Then, take a look at the price (total and for each car) that you’re paying so you can get a realistic picture of your insurer’s charges.

To strike a balance that you can be happy with and that will still keep you well-protected, it’s a good idea to go over your policy every year and make sure that it still meets your needs. If you change vehicles, you should also consider what policy adjustments you might need to make (such as adding collision coverage if the vehicle is financed) so that you can keep yourself and your vehicles properly protected.

When it comes to making a decision about your insurance policy, talk with your agent and consider shopping around with other companies to see what they are offering. Avoid companies that have poor reputations and companies whose names you don’t recognize. These companies will often have lower prices than their larger competitors, but they may not have a good balance of price and quality. In order to provide the best protection for your auto, shop carefully and make sure you’re comfortable with your policy and company choice before you sign on the dotted line.

The Difference between Collision and Comprehensive Auto Insurance

Many people carry only the state minimum coverage on their vehicles, but for those who want (or need) to carry more insurance, the differences between collision and comprehensive can be confusing. Fortunately, a good agent can help you get just the right coverage, so you don’t have to worry about whether you have the correct auto policy for your needs. Keep in mind, if you finance your vehicle you’ll normally be required to carry both comprehensive and collision insurance on it until it has been paid off. That’s designed to protect the company you’re making payments to, in case something happens to the vehicle.

Collision insurance is very specific. It protects your vehicle if you get into an accident, no matter who’s at fault. If another driver hits you his or her insurance should pay to fix your vehicle, but what if that driver doesn’t have insurance? It’s generally not legal to drive without insurance, but many people still do it. If you’re hit by someone who doesn’t have coverage on his or her vehicle, it’s quite possible you’ll simply be out of luck with getting your auto fixed unless you have collision coverage. Especially if your vehicle is relatively new and still worth thousands of dollars, it’s a good idea to carry collision coverage.

Comprehensive coverage is more about issues like fire, theft, and glass breakage. These problems are not covered under standard PIP and liability insurance policies, but it’s a good idea to have this coverage. Generally it’s not that expensive, and can protect you if your car is stolen or if it catches fire. Some policies cover fixing chips and cracks in the windshield and some don’t, but all policies cover serious issues of glass breakage like smashed windows or a windshield that’s too badly damaged to simply be repaired.

Understanding the difference between the various types of options for protecting your vehicle is very important, so make sure you pay close attention to the information provided to you by your agent. Don’t be afraid to ask questions if you’re unsure about something. That way, you’ll have peace of mind that you’ve gotten the policy that’s really right for you.

Did Towing Damage Your Car?

Did Towing damage your Car?Instances such as your vehicle in no parking zone, violation committed, caused an accident, your vehicle is immobile and needs a repair or mechanic to look upon. For all the above, towing comes as a rescue. But what when a towing process itself damages your car? Do you have to bare the expenses? Will your car insurance company pay for it? Many questions, answered below.

Usually, few car insurance companies accept such damages under their collision coverage, if the insurer has opted for collision coverage. It generally covers any damage which occurs to your vehicle due to collision, caused either by another vehicle or object. But the collision coverage is a deductible where deductible is that amount which you as an insurer will have to pay out of your own pocket much before your insurance company hops in.

To Do!

When you are at the towing company to pick your vehicle or as soon as it is dropped by towing truck into a mechanic shop or service station, check thoroughly for:

  • scratches
  • tires if deflated
  • dents
  • worn out paint
  • any trouble with alignment of car

Take pictures immediately or a video if in case of any damage mentioned above. If possible collect some witness statements which can help you in making your claim process easy and quick.

Successful Claim

Every state and it’s municipal corporation has definite set of rules on how a towing process has to operate. As towing are independent operators, not all state municipalities agree for the claim, only few encourage the submission. Some times the towing company itself will agree in paying for the claims made. However, you will have to keep your car insurance company updated. If the towing company does not accept your claim then you can work through your car insurance company. You can file a complaint, raise a legal action to collect money for repair of the damaged. At times, the towing company will negotiate between the parties, your insurance company, truck operator, insurance company of towing company.

Loan/ Lease Payoff

Car loanLoan/lease coverage is the coverage that pays the difference between how much you owe for the vehicle and how much your car insurance pays if your vehicle has undergone total loss or if your vehicle is stolen and is not recovered. If you want to add loan/lease coverage to your policy collision coverage and comprehensive coverage are the coverages is a must which should be added before the loan/lease coverage. Consider adding the loan/lease coverage to the insurance policy if you are shopping for the insurance by taking a quote on your car. If the driver is having loan/lease balance on his car through any of the financial institution and not by an individual then applying loan/lease coverage on your policy will be helpful.
If you are involved in a very serious car accident without loan/lease coverage, your car insurance company might declare that your vehicle is a total loss and give you a settlement check much less than what your vehicle owes on your unpaid car loan. Along with the replacement vehicle what you had decided to purchase you also need to continue paying the old car loan in addition. When you sign the contract while you are leasing a vehicle, in the contract loan/lease coverage is added as a part of the agreement. Before buying the loan lease coverage read properly all your loan lease documents carefully. Many of the insurance companies loan lease coverage is available if you have got the car loan from a recognized financial company. The coverage will not be applied if you have borrowed money from a friend or a family member to obtain the vehicle. After the collision coverage and comprehensive coverage has paid the actual value for your vehicle, then the loan/lease coverage will issue a check. This value will be the difference between the collision and comprehensive coverage and the amount your vehicle loan will currently owe.

Car Insurance Benefits – Own It!

Avail Those Benefits of Car InsuranceYou might be an excellent driver, but while driving you are never totally safe. Some people do think that car insurance is dispensable. You need to know that car insurance is a necessity and is also mandated by law. Every state has it’s own minimum requirements set for car insurance and is mandated. It is made illegal to driven without car insurance in any state. With car insurance you can drive legally all around without worrying about being pulled by cops for fine or going to jail.

Car Insurance – Saves You More!

Any company which provides you insurance will take care of every individual and vehicle listed out in your policy. Depending upon the insurance type, many clauses are specified which needs to taken into consideration while raising claims. A premium amount is paid to the car insurance company for the service provided. There are many more things to be taken care of before you work out on your premium cost and it comes into effect.

Car insurance gives you that peace of mind that anything happens to you or your car it is fully covered. If you have included deductible in your policy, you will end up paying only that amount. There are such benefits of auto insurance which makes your buy worth and you will not be left disappointed. There are many ways in which any car insurance company lowers your insurance premium.

Know More Of Benefits

  • If two cars involved in a crash are insured with same insurance company then their deductible on collision coverage will be waived off.
  • A specific amount is been given for lost wages in case there is any crash during court adjournment.
  • If your car’s stereo is damaged in any crash then it can be covered only up to a specific amount, especially when the system is installed in a area as per the rules of insurance company.
  • When car is stolen or damaged, your insurance bares certain amount of travel expenses.
  • Insurance covers damage to clothing and your luggage if listed under your policy.

Leased Cars – Smart Decision

Did You Make A Smart Decision?Considering the high gain in car prices and the shine in the status of the economy today, so more people have begin to think leasing a car instead of buying a new car. Inspite of the lucrative good deals offers by car dealers to the customers, the sum of leased cars is on a boost due to its intact benefits. Auto dealers gets leasing as financially attractive, and also fits tremendous change in lifestyle. The choice is very personal. Arranging for a good lease insurance out of your vehicle insurance representative is extremely important. On the other hand, common leasing insurance does not take care of all sorts of things. You will find there’s difference regarding the worth of your leased car and the sum you’ve spent on the car.

Leased Cars – GAP Insurance

The auto leasing company may also require Guaranteed Auto Protection or “GAP insurance” as it is commonly called. In case of leasing, the cost of gap insurance is generally included in the lease payment since the auto dealers generally buy a master policy from an insurance company to cover all their leased cars. The insurance company pays on the basis of the car’s actual value while taking the depreciation into account. The difference between them is known as the ‘gap’. However, there is no obligation on your part to agree to have GAP insurance included in your lease agreement.

Collision Coverage and Comprehensive – Protects Your Leased Car

The auto leasing company would want you to have both collision coverage and comprehensive. In instance of tree falling, theft, vandalism, fire or of any damages this comprehensive coverage will save your leased car.

In the case of any car accident this collision coverage will save your car in lease. If you clash with stationary object or a another vehicle, your coverage as collision will save your car. The deductible go together with collision coverage and comprehensive. The deductible is the sum that you need to pay out of your pocket before your insurance company starts to charges in.

Things to Consider When Insuring an Older Car

Consider ThemPeople everywhere have wondered if they have too much insurance on their older car. They wonder what coverages can be lowered without changing effective coverage to poor coverage. There are two types of coverages that make up an auto policy. The first is liability coverage, which is used to cover injuries to other people in the event of an at-fault accident. The second is comprehensive coverage, which pays for damages to the policy holder’s car in the event of an accident or damage caused by natural perils.

Comprehensive coverage is something to think about. This coverage is what covers the auto in case of damage from a stationary peril. If the auto is older it is most likely suffering from damage brought on by age. When a car ages, most people will often not care what the car looks like because the value often decreases over time. However, there are some cars that are older that are still in pristine condition and are still worth high amounts of money. Value is the thing to consider.

A second coverage to consider is the collision coverage, which is what covers the auto in case it hits something. Value of the car is an important thing to consider here as well. If the car is only worth $200 then it might be worth not carrying this coverage.

Another thing to think about is how often damage occurs to the car. Damage brought on to a stationary car by collision perils are more likely to occur than collision while in motion. It is possible to only carry comprehensive coverage and not collision. So if you wanted one coverage and not the other, it is possible to drop the undesired coverage.