Why you Should Shop Insurance before Leasing or Financing

Before You Shop.When you go to a new car dealer in California and plunk down your money toward the car of your dreams, you should also consider the cost of insurance in your budget. The price of a new car these days can really put a strain on a person’s finances, and if you are financing or leasing that car, you may be saddled with high monthly payments for years to come.

Any time you lease or finance a new car, the lender will require you to carry full insurance on that vehicle. While California car insurance laws only require you to carry a small amount of bodily injury and property damage liability insurance to protect the interests of others, you might injure someone in an accident, and lenders require you to carry sufficient insurance to cover their interests.

A bank or other lending institution that provides financing or a leasing company that leases a vehicle to you has a financial interest in that vehicle until the terms of the financing or lease agreement come to an end. In addition to the mandatory liability coverage California auto insurance requires you to maintain, you must also maintain full comprehensive and collision insurance until the car is either paid off or the lease ends and you return the vehicle.

Collision will cover the value of the vehicle should it be damaged or destroyed in an accident while comprehensive covers property damage caused by forces outside of an actual crash or accident. Some areas covered by comprehensive include theft, vandalism or damage from severe weather.

While the cost of California auto insurance coverage that includes collision and comprehensive may go up by several hundred dollars, the amount added to your premium will also depend on the size of your deductible. Most lenders will require you to have a fairly low deductible, such as $250 or $500, which will cause your premium to be a little higher than if you had a $2,000 deductible.

The important thing to remember about insurance requirements when financing or leasing a vehicle is that you will need to buy more than the minimum amount of California auto insurance mandated by state law to protect the interests of the lender.

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.